Quanzhou Financing Guarantee Corporation Main Business Risk Prevention Mechanism Study

Since the reform and opening up, Due to Quanzhou giving full play to advantages, grasping the opportunities and carve, Quanzhou economy rises abruptly quickly. At present, medium and small micro enterprises have become the leading force in the national economy and the largest economic pillar in Quanzhou.However, Quanzhou medium and small micro enterprises Universal exist some problems,such as small size of assets, not standardized management,false information disclosure and low credit rating. Then Commercial banks and other financial institutions refuse to lend or cherish lending to account forhigh regulatory costs, hard access to information and other factors. The shortage of funds and “financing difficulty” has become the bottleneck of the development of medium and small micro enterprises. Financing guarantee corporations involved increase the medium and small micro enterprises’ credit and undertake the risks for banks, solving the problem of financing difficulty. But itmakes the risk transfer from bank to the financing guarantee corporation intangibly. Thus, financing guarantee corporation must be strict risk control mechanism to avoid or reduce compensatory losses.Based on this, according to the current situation of financing guarantee industry and the current situation of Quanzhou medium and small micro enterprises, this paper points out that the financing guarantee corporation facing twointernal risks and six external risks. Besides this paper puts forward the adverse factors in the risk control of at present Quanzhou financing guarantee corporation engaging in medium and small micro enterprises financing guaranteebusiness. According to the different risk point, this paper using asymmetric t heory and symbiosis theory suggests that constructing mutual financing guarantee corporation. This paper analysis the necessity and possibility of business transformation to folk debit guarantee business in order to solve the policy risk.This paper also proposes the establishment of employee incentive mechanismand building the enterprise culture to the prevention and control of moral hazard. Through theoretical analysis and empirical analysis, qualitative and quantitative combination, this paper proposes a standardized business processes andthe establishment of risk system to prevent and control the external risk by the medium and small micro enterprises. Moreover, this paper analyzed the case of the financing guarantee corporation occurrence of compensatory risk because of the disregulated operation in the financing guarantee corporation and the mismanagement in the medium and small micro enterprises to note the importance of the construction of risk prevention mechanism in the financing guarantee corporations.