Risk of the Guaranteed Loan of "Change Rural Insurance to Urban Insurance" in Zhangjiagang and Its Countermeasures Research

Rural credit mainly includes two patterns: credit loan and guaranteed loan. Because of the differences of local credit environment and the risk of asymmetric information between the both sides of the credit, credit loan is rarely used and handled in recent years, or it is in the handle but the delivery and review are very careful. Guaranteed loan can better avoid the financial risk, so it becomes the main credit of rural financial institutions in recent years. Nowadays with the development of rural economy, guaranteed loan is limited by a variety of conditions. After 2006, the traditional guaranteed loan appeared a nationwide downward trend. With the continuous development of economy, the public demand is becoming more and more widely, the traditional credit and loan guarantees is difficult to meet the effective financial demand in rural areas. This paper discusses the guaranteed loan of change rural insurance to urban insurance, which has been implemented in Zhangjiagang Region of Suzhou for four years, so it has great reference significance. At the same time it has larger evocation for poor areas.