Research On Credit Risk Of The Small And Medium-sized Enterprises Financing Guarantee In China

The guarantee institutions play an irreplaceable role in the course of the small and medium-sized enterprises (SMEs) financing. They promote the loans of the SMEs through increasing credit of the enterprises and sharing risk to overcome the SMEs financing difficulties.Great risk is taken by the guarantee institutions which are recognized as one of the high-risk industries. So, it is the key to the sustainable development for the guarantee industry that we shall control the credit risk effectively.The paper sums up the characteristics of the credit risks of the guarantee institutions on the base of the expounding of the credit guarantee and credit risk theories at first. Then considering the situation and development of the guarantee industry, it analyses the credit risks systematically from three angles between the guarantee institution and SMEs, the guarantee institution and commercial banks. Finally, some suggestion on how to strengthen the credit risk control is proposed against the analysis above.There are five parts in the paper. The introduction is the first part. The second chapter introduces the theories about credit guarantee and the theories about the credit risk. The risk-transfer theory, asymmetric information theory and quasi-public theory build together the base of the economic theories on credit guarantee. The definition of the credit risk is given in this chapter and the loss caused by the credit risk is related with the SMEs and the others. For example: banks and governments. The third chapter introduces the development and the status of the SMEs financing guarantee and the source for the credit risk taken by the guarantee institutions. The forth chapter analysis the reasons of the guarantee credit risk. The fifth chapter focuses on how to control the credit risk and compensate the loss.The paper studies the causes of the credit risk in the SMEs financing process both with the methods of induction and deduction. Meanwhile, it puts forward the corresponding risk-control measures on the base of the literature study and the practice experiences. It is an important stage for the guarantee institutions to explore the cooperation developing models with the commercial bank and SMEs. It depends largely on the effectiveness of the credit risk management that whether the guarantee industry could develop sustainably and healthily.The research on the credit guarantee theory、credit risk theory、the mechanism and the control measures of the credit risk has a certain significance.