Beijing SME Credit Guarantee Institutions Operating Conditions Studied

In recent years, China’s economy has developed by leaps and bounds. With the development of the economy, SMEs occupy an increasingly important position and play an important role in China’s economy, they are becoming the main part of the enterprise. In addition, SMEs have an important significance in the creation of social wealth, employment opportunities, technological innovation, financial and taxation, import and export trade. But financing difficult is a bottleneck in the development of SMEs because of its internal defects and limitations of external conditions. SME credit guarantee institutions provide a good financial intermediary platform for the conduct of SMEs’ business as an bridge between SMEs and banks.However, credit guarantee institutions is still in perfect stage because of time soon in China, so there are some problems in the operation of institutions in this process, such as single source of funds, not operating within specifications, bad risk control, imperfect legal, lack of professionals, backward social credit system, etc. These issues directly restrict the SME credit guarantee institutions’ operation and sustainable development in the future, and lead to the credit guarantee agencies cannot effectively solve the financing problems of SMEs.This paper focuses on the SME credit guarantee institutions in Beijing, analyzes the running condition of the SME credit guarantee institutions from the conception> effect and theory of Credit Guarantee. Through the study of development and the present running condition of Beijing credit guarantee institutions, this paper summarizes its characteristics and existing problems, combines case analysis of the basic situation of China National Investment&Guaranty Co., Ltd. and another negative example, and last proposes specific recommendations from five levels including guarantee agencies, industry associations, government, financial institutions, SMEs.