Financial contract model of credit guarantee under the condition of Risk-limitation

In order to control credit guarantee risk, it has built a credit guarantee financial contract model under the condition of risk limitation. The strategy of credit guarantee institution may be decided by its risk limit. There are many factors that decide critical risk of credit guarantee institution together. The analysis result has shown that credit guarantee institution may agree to guarantee or refuse to guarantee for SME according to the interval of retained earnings of SME. When the retained earnings of SME is in the interval, credit guarantee institution can make the optimal strategy, otherwise, it can´t. The conclusion can direct credit guarantee practice effectively.