China Banking and Insurance Regulatory Commission strengthens the supervision of financial leasing companies to promote the industry "reduction of quality"
China News Agency, Beijing, June 9 (Reporter Wang Enbo) China Banking and Insurance Regulatory Commission announced on the 9th the "Interim Measures for the Supervision and Management of Financial Leasing Companies" to further regulate the related company's operating behavior and promote the industry to "reduce the amount of quality."
As a means of investment and financing closely integrated with the real economy, financial leasing has the characteristics of convenient financing, flexible maturity, and financial optimization. It has played an active role in broadening the financing channels of small and medium-sized enterprises, promoting industrial upgrading, and adjusting economic structures. According to the statistics of the management information system of national financial leasing companies, as of the end of 2019, there were 11,124 financial leasing companies in China, an increase of 518 from the previous year and a year-on-year increase of 5%.
The head of the relevant department of the China Banking and Insurance Regulatory Commission introduced that the "Measures" aim to guide the industry's standardized and orderly development by strengthening and improving the after-event supervision of financial leasing companies. For example, the official clarified the business scope and the list of negative activities, limiting the scope of the leased goods; guiding the financial leasing company to focus on the main business, strengthening compliance regulatory constraints, stipulating the proportion of financial leasing assets, the proportion of fixed income securities investment business, and concentration management And other regulatory indicators.
At the same time, the “Measures” also strengthened risk prevention and required the improvement of corporate governance, risk management, provision for reserves, and assessment management of leased goods for financial leasing companies.
It is worth mentioning that there are currently a large number of “empty shell” and “disconnected” enterprises in the financial leasing industry. According to statistics, about 72% of financial leasing companies are in a shell or closed state, and some companies deviate from their main business operations, which will bring some adverse effects to the industry.
The above-mentioned person in charge said that in response to these issues, the China Banking Regulatory Commission believes that supervision and guidance should be strengthened to promote the “reduction and quality enhancement” of the financial leasing industry through classified disposal. It mainly includes two aspects:
One is to accurately classify and clean up the stock. According to business risks, violations of laws and regulations, financial leasing companies are divided into three categories: normal operations, abnormal operations, and illegal operations. The identification criteria for the three types of companies are specifically clarified, and the classification and disposal measures are detailed. The second is to be prudent and strict, and strictly control the increase. In the absence of administrative permission, local financial regulatory authorities and market regulatory authorities are required to establish a consultation mechanism to strictly control the registration of financial leasing companies and their branches. (Finish)