2006•Unpublished venueRequires access

The Problem of Guarantee Constraint and Counter-measures of Rural Credit in China

HU Shi-hua

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Abstract

Rural families or SMEs in China can hardly profit from existing credit guarantee in rural finance market. It is necessary to introduce the “third-party guarantee” to substitute current ways of guarantee, which may partly relieve the dilemma in present credit system. Consequently, the government should adopt some measures to support the development of all kinds of rural credit guarantee institutions in China

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What this paper is about

Rural families or SMEs in China can hardly profit from existing credit guarantee in rural finance market. It is necessary to introduce the “third-party guarantee” to substitute current ways of guarantee, which may partly relieve the dilemma in present credit system. Consequently, the government should adopt some measures to support the development of all kinds of rural credit guarantee institutions in China

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Available abstract

Rural families or SMEs in China can hardly profit from existing credit guarantee in rural finance market. It is necessary to introduce the “third-party guarantee” to substitute current ways of guarantee, which may partly relieve the dilemma in present credit system. Consequently, the government should adopt some measures to support the development of all kinds of rural credit guarantee institutions in China

Key concepts: Dilemma, China, Constraint (computer-aided design), Government (linguistics), Profit (economics), Business, Finance, Economics

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