Study On The Legal Problems Of The Financing Guarantee Corporation In China

The appearance and development of financing guarantee industry in our country, which improves the efficiency of the small a nd medium-sized enterprises' loan and financing as well as their financing environment to a certain extent, contributes to promoting the development of financial industry in China. In recent years, China's financial guarantee industry has gone from rapid ex pansion to shock adjustment process, in terms of scale and the number endure the rapid growth to continued slow down and from single to multiple in business. At the regulatory level, s ince the China banking regulatory commission, together with other seven commissions, issued tentative methods for the management of financing guarantee enterprises in 2010, the central and local departments have taken measures to accelerate the construction of the supervision legislation of the financing guarantee industry and its system. These measures include clearing or regulating non-financing guarantee companies, formulating the local management approaches successively, and the appearance of the relevant supporting policies, which imply that the construction of the legal r egulation is in process. However, due to the short time development, the phenomenon of mixed and disorderly competition is still serious in our financing guarantee industry, During the stage of the shock adjustment and strengthen supervision. There is no doubt that we should also recognize there still exists some problems such as the overall system being not complete, the regulatory level being low, the principle of the norms being too strong, the regulatory authorities around the inconsistency, the gap of regulation rules in different places being quite huge, the ability of supervision of joint conference among the relevant ministries regarding being low, the establishment of the industry association not being completed and regulatory capacity not being enough. Therefore, we should establish a regulation system which includes governmental regulation, company self-discipline, and the supervision of industrial associations. In terms of the government, what it should do is to improve the system, which contains refining the market accessing system, improving the system construction, Unifying regulatory body and detailing information disclosure system, etc. As for the industry associations, they can improve the industry association and the organization of the corresponding responsibility, strengthen the association of innovation building of operation mechanism, expand their branches to the small cities, and make all the financing guarantee companies under the supervision of these associations. Then under the perfect supervision system, financing guarantee industry is bound to develop continuously in the tide of financial reform, with quality improved along with adding impetus to social development.