Study On Operation Mechanism And Effect Of The Credit Risk Compensation Fund For Small And Micro Enterprises In C City

Financing fo r small and micro enterp rises is generally difficult,expensive and slow,which has always been a h ot issue.In order to alleviate this problem,many beneficial explorations have been carried out,among which the credit risk compensation fund is the most inf luential innovation achiev ement.This paper summarizes the common problems existing in the current risk co mpensation fund,such as confusion with the traditional reward and subsidy policies,unclear mechanism of action,unclear policy objecti ves,and strict access approval.In view of the problem,it is proposed that the credit risk compensation fund for small and micro enterprises should establish a strong link between the policy goal of "expanding the loan scale for small and micro enterprises" and the policy means of "credit risk compensation".In general,it needs to play a role in improving risk pref erence,enhancing information production and enhancing borrowers’ cred it.At the micro operation aspect,sufficient positive incentives should be provided to cooperative banks and consideration for business cooperation provided by banks should be obtained.On the basis of theoretical an alysis,this paper investigates the operation status of the credit ri sk compensation fun d for small and micro enterprises in C City,analyzes th e act ion rules of risk com pensation mechanism,and summarizes the achievements of the fund,The risk compensation fund administration pays great attention to design and improve the operating mechanism,cont inuously explore innovation,formed a new,unique,sophisticated operation mech anism,form and perfect the compens atory deposit,lim ited compensation responsibility,embedded credit enhancing,bank’s Cooperation of consideration,also exploring the negative billing,balancing the benefits and risks.Under the action of these operation mechanism s,the fund has achieved remarkable results in expanding loan scal e,reducing financing cost and sustainable operation.Acco rding to the research conclusions,this paper puts forward some suggestions on the design optimization of risk compens ation mechanism.The main innovative values of this paper a re :(1)put forward the n ecessary conditions for the risk compensatio n fund to play a role;(2)Study the characteristic risk compensation fund case of CIT Y C;(3)Study the mech anism and design of risk compensation fund.(4)Put forward optimization suggesti ons for other provinces and cities t o learn from.