Development plan of the financing guarantee company

1. The approval procedures for establishment are different. A non-financing guarantee company can be established by applying to the administrative department for industry and commerce for establishment and registration in accordance with the Company Law, and the requirements of the Company Law for the establishment of ordinary companies are applicable, and the principle of establishment is the normative principle. The establishment of a financing guarantee company needs to perform a strict pre-approval system, and the establishment principle is approval.

2. The scope of business is different.

3. The restrictions on the incumbents are different. Non-financing guarantee companies can employ personnel as long as they comply with the relevant provisions of the Company Law. However, the financing guarantee company must improve the rules of procedure, decision-making procedures and internal audit system, and establish a guarantee evaluation system, post-recovery and processing system in line with the principle of prudent operation, and have corresponding requirements for its management personnel.

4. The degree of supervision and management is different. There are no strict regulatory requirements for non-financing guarantee companies, but there are strict regulatory procedures for financing guarantee companies, and supervision can be seen everywhere, and supervision involves all aspects such as establishment, change, and operation. At present, China's non-financing guarantee companies still occupy a large proportion, in the study of the establishment of financing guarantee companies at the same time, it is also very necessary to include non-financing guarantee companies in the scope of supervision.

It is gratifying that the China Investment Guarantee Expert Committee finally issued the "National Non-financing Guarantee Agency Standardized Management Guidance" in June, the provincial and municipal non-financing guarantee associations identified as the industry standard management guidance department, and stipulates that non-financing guarantee companies need to obtain the qualification certificate of the guarantee industry association when they are established, and in terms of their annual inspection, the implementation of the joint annual inspection system of industry associations and industrial and commercial registration departments, although the guidance is a document in the guarantee industry, However, to a certain extent, the establishment, access and operation of non-financing guarantee companies are included in the scope of supervision.

Article 9 of the Interim Measures for the Administration of the Financing Guarantee of the People's Republic of China for the Return of the Huai Division.

The establishment of a financing guarantee company shall meet the following conditions:

1) Have articles of association in accordance with the provisions of the Company Law of the People's Republic of China.

2) Shareholders with the ability to continue to make capital contributions.

3) Have a registered capital in accordance with the provisions of these measures.

4) There are directors, supervisors, senior managers and qualified practitioners who meet the qualifications.

5) Have a sound organizational structure, internal control and risk management system.

6) There is a business place that meets the requirements.

7) Other prudential conditions stipulated by the regulatory authorities.

The measures for the management of the qualifications of directors, supervisors, senior managers and practitioners shall be formulated separately by the inter-ministerial joint meeting for the supervision of financing guarantee business.

1) Financing guarantee system model. At present, small and medium-sized enterprises provide financing guarantee companies to form a financing guarantee system with commercial guarantee as the main body, policy guarantee as the leader and a variety of guarantee methods coexisting. The main modes are as follows:

First, it is a policy-based guarantee company that is not for the purpose of profit, which is usually funded by the first level at all levels to set up a guarantee company (sole proprietorship, holding, and shareholding); The second is a commercial guarantee company for the purpose of profit, which is usually funded by enterprises and individuals and is a company that operates according to the market; The third is a non-first-class capital contribution, a mutual guarantee company that provides guarantees for the invested enterprises, which is usually jointly funded by various enterprises and promotes the transformation of the main body of the insurance from being dominated by the first to the market; Fourth, it is a commercial guarantee company with a hybrid guarantee model jointly funded by enterprises, enterprises and individuals for the purpose of profit.

2) The deceleration of the development of the guarantee company and the scale of the compensation fund are on the rise, and the quality of the guarantee assets is declining too fast. In recent years, the economic downturn has continued, and the overall development of the guarantee industry has slowed down significantly. After rapid growth from 2010 to 2011, growth began to slow significantly in 2013.

In 2014, the balance under insurance increased year-on-year, but the growth rate declined. Compared with 2014, in 2015, the number of guarantee companies, the number of new guarantee households, the number of new guarantees, the amount of new guarantees and the balance of guarantee liability at the end of the period have decreased more, compared with the same period, the amount of new guarantee compensation in the current period increased by about 46 percentage points, and the amount of compensation in 78% of the provinces and cities in the country is on the rise. For many small and medium-sized guarantee companies that start late, have little capital and less experience in management, just a few million yuan of compensation is enough to put the company in an unsustainable situation.

3) The proportion of subrogated capital losses is relatively high. Although such cases can usually be won, the difficulty of enforcement is increased due to the difficulty of examination and seizure, which makes it difficult to recover the amount of compensation. For example, from the filing of a case to the victory of a guarantee company, the auction of equipment has lasted in recent years.

The cost of resorting to law is relatively high, accounting for about 20% of the subject matter, and the trial of the case needs to be carried out according to the procedure, and the related process of the case is relatively slow, which also causes the sinking of large amounts of money. Some cases were not heard, and some cases were difficult to enforce after trial, and in the end, there was not much money left to recover through court enforcement, which also formed a great contrast with the amount of funds advanced.

4) The return on net assets is low. It is difficult for a guarantee company to rely on the accumulated operating profits to achieve the goal of absorbing the guarantee loss, and it is usually difficult to improve the operating performance. However, charging a small amount (2% of the target amount) of the guarantee fee needs to bear the full amount of the compensation liability, which makes it difficult for the guarantee company to move forward in the case of frequent non-performing loans.