Credit guarantee system in Turkey and world, other things can be done for improving the function and the volume of Credit Guarantee Fund in Turkey

The biggest problem experienced by SME's, which are the foundation stones of economies in Turkey and throughout the world, in reaching financing resources can be attributed to inadequate security and thus not being able to access the right funds for operating capital or investments. The best solution to this problem is seen as taking advantage of the indemnity provided by The Credit Guarantee System. This system that was developed to enable companies with inadequate security to access the needed credit and also to guarantee repayment, provides protection against unexpected contingencies but does not fully remove the risk entailed. The Credit Guarantee System ensures the distribution of the risk between the bank, the credit customer and the credit guarantee institution, and thus reduces the effects of the risk on any one entity.The Credit Guarantee System which is an important tool for the financing requirements of SME's has been in use in developed countries for many years. It eases the access of SME's to financing resources in the countries. It has been implemented in and makes a positive contribution economic development. The only example of this in Turkey is the Kredi Garanti Fonu A.Ş. The negative impact of the financial crises specially from 2008 onwards, on the world economies including Turkey, has resulted in a more cautious approach by the banks in granting funds to companies. Accompanied by the global crises banks have started to require high value financial securities against credits requested by companies. The crises has resulted in a higher awareness of Kredi Garanti Fonu A.Ş. existence and the company has granted guarantees to various operators in an increasing scale and is continuing to do so currently.The object of this study is to demonstrate the importance of The Credit Guarantee System from the perspective of banking, operations and the economy in enabling not only the continuance of SME's economic operations but also being of help in implementing of new projects that would otherwise be put on the shelf but also to be able the provide more support to the SME's and to increase their contribution to the economic development by means of other possible applications that can be implemented, in addition to the existing implementations and thus increase the volume of guarantee allocated and raise its operability of The Credit Guarantee System which is the this systems only representative in Turkey.Key Words: Credit Guarantee System, Guarantee, Credit Guarantee Fund, SME?s