Research On The Utilization And Development Of Credit & Guarantee Insurance In Credit Management Of Small And Micro Businesses

The role of credit guarantee insurance in helping small and micro enterprises improve their credit ratings and access to commercial bank financing has been widely recognized by experts,scholars and government agencies.It has accumulated some successful experiences both at home and abroad.However,the connotation of credit & guarantee insurance is rich.The development of credit insurance in our country is very unbalanced.It reflects that the ways of small and micro enterprises getting credit by insurance and getting credit funds are not smooth.For the issues arising from the credit & guarantee insurance in the credit management of small and micro enterprises,all the participating parties need to work together to solve them.The object of this paper is loan-type credit & guarantee insurance with credit enhancement.In this paper,a bank and insurance companies in the micro-enterprise credit & guarantee insurance project as an example and in conjunction with the domestic major insurance companies to carry out such business situation,analysis and summarizes the practical application of this model problems.Since then,the paper summarizes the successful experience of financing small and micro enterprises through credit & guarantee insurance at home and abroad.Finally,aiming at the difficulties of credit & guarantee insurance in the financing of small and micro enterprises,this paper suggests that the government,commercial banks and insurance companies should establish and perfect corresponding systems and operation procedures.Commercial banks should strengthen risk control management and strict internal rewards and punishments system so as to avoid moral hazard and operational risk that may arise when credit & guarantee insurance is combined with credit management of small and micro enterprises.The government may set up policy-oriented reinsurance companies to help disperse commercial insurance.The cumulative credit risk of the company,and the development of relevant tax incentives to mobilize the enthusiasm of banks and insurance companies.