The Measures for the Administration of Guarantee Companies came into effect on 20 15 1 1, aiming at standardizing and strengthening the supervision of guarantee companies and promoting the healthy and orderly development of the guarantee industry. The main contents of this method include: 1. Establishment of guarantee company: the guarantee company should have certain economic strength, management ability and technical ability, and be established with the approval of financial supervision institutions. Scope of business: The main business of the guarantee company includes providing loan guarantee, commitment guarantee, letter of credit guarantee and other guarantee services for non-financial enterprises or individuals. Three. Risk management. A guarantee company shall establish a risk management system, evaluate and audit the credit ability of customers, and reasonably control business risks. Four. Regulatory requirements: Guarantee companies should regularly submit business reports and risk reports according to regulatory requirements, and punish and stop violations.
What are the risks of the guarantee company? The essence of guarantee business is risk business, and the risks faced by guarantee companies mainly include credit risk, market risk and operational risk. Among them, credit risk is the most important risk. Once the borrower defaults, the assets of the guarantee company will suffer losses.
The Measures for the Administration of Guarantee Companies is an important legal basis for the business supervision of guarantee companies, which is of great significance for promoting the healthy and orderly development of the guarantee industry and standardizing the behavior of guarantee companies. Guarantee companies shall strictly abide by the provisions of these Measures, strengthen risk management and internal control, and protect the legitimate rights and interests of themselves and their customers.
Legal basis:
Measures for the Administration of Guarantee Companies in People's Republic of China (PRC) Article 11 Guarantee companies shall establish and improve the credit evaluation system and risk control mechanism to ensure that the guarantee services they provide meet the national laws, regulations and regulatory requirements.