The credit guarantee system in Japan
General credit guarantee program
Because the information gaps between banks and small busi
nesses are large, small businesses often find it difficult to borrow
sufficient funds from banks, even if they have low credit risk.
To mitigate the resultant credit rationing for small businesses,
52 government-affiliated credit guarantee corporations (hereafter,
CGCs) in Japan offered credit guarantees for bank loans to credit
constrained small businesses.