The executive meeting of the State Council pointed out that the financial system should make reasonable and substantial concessions to various enterprises—
1.5 trillion yuan: who will pay the money? How to make?
Economic Daily · China Economic Net reporter Lu Min
The financial sector makes concessions to enterprises mainly in three ways: one is to make concessions by lowering interest rates, the other is to promote concessions by directly accessing monetary policy tools, and the third is to reduce concessions by banks. The financial system is expected to make 1.5 trillion yuan in profits for enterprises throughout the year. While making profits, we must also improve efficiency and achieve "scientific and reasonable", which not only protects the interests of bank shareholders, but also firmly adheres to the bottom line of risk.
The executive meeting of the State Council recently convened to further introduce a series of measures such as guiding loan interest rates and bond interest rates downwards, issuing preferential interest rate loans, implementing deferred principal and interest payments for small and medium-sized enterprise loans, supporting the issuance of unsecured credit loans for small and micro enterprises, and reducing bank charges. Policies to promote the financial system to make reasonable profits of 1.5 trillion yuan to various enterprises throughout the year.
In what ways does the financial system make profits for companies? Give 1.5 trillion yuan to the enterprise, where does the money come from? Can the bank bear it? In this regard, there has been much discussion in the financial industry. Industry experts said that it is reasonable for financial institutions to make profits to enterprises, because financial institutions and enterprises are in a symbiotic and prosperous relationship, and serving the real economy is also the responsibility of financial institutions. In addition, when financial institutions make profits to enterprises, they must also improve efficiency and achieve "scientific and reasonable", which not only protects the interests of bank shareholders, but also firmly adheres to the bottom line of risk.
Push financing costs down again
Li Peijia, a senior researcher at the Bank of China Research Institute, believes that the difficulty and cost of financing for small and micro enterprises has always been the focus of attention. The executive meeting of the State Council encouraged the financial system to reasonably benefit enterprises, mainly to promote the reduction of corporate financing costs. In fact, the current interest cost of corporate loans has fallen to historical lows.
"The data shows that the weighted average interest rate of RMB loans of financial institutions in the first quarter of this year was 5.08%, a decrease of 0.61 percentage points compared with the same period of last year, the second lowest point since 2007, and only higher than December 2016." Li Pei Jia said that in terms of bond issuance interest rates, the weighted average interest rate of corporate bond issuances fell to a historical low of 4.07% in April this year.
In the industry's view, the State Council executive meeting for the first time clarified the target scale of financial concession entities, which shows that this year's situation is very different from previous years. Since the beginning of this year, due to the impact of the new coronary pneumonia epidemic, a large number of small and medium-sized enterprises have been affected. In order to protect employment and people's livelihood, various financial support policies for small and medium-sized enterprises accelerated in the first quarter.
From the perspective of monetary policy, a series of strong support measures have been launched in the first half of the year, including three reductions in the deposit reserve ratio, an increase of 1.8 trillion yuan in re-loan rediscounts, the introduction of a credit loan support plan for small and micro enterprises, and the implementation of small and medium enterprises The policy of deferred principal and interest payment for loans in stages.
Li Peijia believes that combined with the global low interest rate environment, the development needs of enterprises under the epidemic and the financing experience of small and micro enterprises, it is still necessary to reduce the comprehensive financing cost of enterprises. For banks, how to make profits the most critical? First, the bank transfers profits to reduce corporate loan interest rates and various charging items; second, reduces bank financing costs, and promotes the reduction of corporate financing costs while keeping bank profits basically unchanged.
Multi-party coordination "reasonable profit"
In early June, the “Guiding Opinions on Further Strengthening Financial Services for Small, Medium and Micro Enterprises” issued by the People’s Bank of China, the China Banking Regulatory Commission and other ministries and commissions clearly required that national banks should reasonably make profits to ensure that the coverage of loans to small and medium-sized enterprises was significantly expanded and integrated Financing costs have dropped significantly. The national bank’s internal transfer pricing preference is not less than 50 basis points, and the growth rate of the inclusive small and micro enterprises of five large state-owned commercial banks is higher than 40%. Development and policy banks must implement a special credit line of 350 billion yuan In place, support small and medium-sized enterprises to resume production with preferential interest rates.
The above guidance is aimed at national banks, especially large banks and development and policy banks. In addition to large banks and powerful joint-stock commercial banks, there are also a large number of small and medium-sized banks, which are also the main force serving small and medium-sized enterprises. Some research institutes believe that the total net profit of my country's listed banks is close to 1.7 trillion yuan in 2019, and the total profit of the banking industry is about 2 trillion yuan. To achieve a profit of 1.5 trillion yuan this year, the pressure on banking institutions is not small.
Simply relying on banks to lower the interest rate on the asset side will cause a large number of small and medium-sized financial institutions to face losses, and the rise in financial risks does not comply with the principle of "reasonable profit". Guosen Securities Research believes that the 1.5 trillion yuan profit margin may be borne entirely by the banking industry alone.
Zheshang Securities recently published a research report that the regulatory authorities emphasize "reasonable profit-making", which is to make profits to entities while maintaining the sustainability of bank business. To maintain the sustainability of bank business and the decline in bank revenue, the cost side must also decline. It is suggested that the supervisory authority can free up space by reducing the standard, directional tools and even cutting interest rates.
For most commercial banks, they are currently striving to find a balance between achieving profit growth and making profits to companies.
Construction Bank President Liu Guiping said that the epidemic will have an impact on the operation and management of commercial banks. CCB will further optimize the asset-liability structure, business structure and customer structure through refined management, while strengthening pricing management capabilities and interest rate risk management and control capabilities. I am confident that we will try our best to maintain stable business growth under difficult circumstances.
Promote the implementation of various policies
Regarding the composition of 1.5 trillion yuan, Yi Gang, governor of the People's Bank of China, made a presentation at the Lujiazui Forum recently. He said that since this year, the financial sector has made concessions to enterprises mainly in three ways: one is to make concessions by lowering interest rates, the other is to promote concessions through direct monetary policy tools, and the third is to reduce fees and concessions by banks. The financial system is expected to make 1.5 trillion yuan in profits for enterprises throughout the year.
It can also be seen from the above statement that the main body of interest is obviously not only commercial banks. In addition, on June 18, the Ministry of Finance successfully tendered the first batch of anti-epidemic special government bonds. The relevant person in charge of the Treasury Department of the Ministry of Finance said on June 17 that this year's 1 trillion yuan anti-epidemic special treasury bonds will be market-oriented, and all will be issued to members of the book-entry treasury underwriting syndicate through public bidding. According to statistics, in the first four months of this year, corporate credit bonds have been issued 4.6 trillion yuan, an increase of 46% year-on-year. Private enterprises have issued bond financing of 270 billion yuan, and the amount of issuance has hit a new high in recent years.
However, while making profits, it is also necessary to pay attention to related risks. Yi Gang clearly pointed out that the financial support policies during the epidemic response are phased. It is necessary to pay attention to the compatibility of policy design and incentives, to prevent moral hazard, to pay attention to the "sequelae" of the policy, the amount should be appropriate, and the policy tools should be considered in advance to exit in time.
Industry insiders suggest that more policy-oriented financial institutions should assume the functions of profit-making enterprises, and at the same time increase the connection between fiscal policies and commercial financial institutions to better serve SMEs.
Liu Ying, a researcher at the Chongyang Institute of Financial Research at Renmin University of China, said that the specific measures for the financial system to reasonably make profits for enterprises must integrate the supportive role of policy finance, development finance, and commercial finance to achieve the following three combinations. First, adhere to the combination of policy finance and inclusive financial instruments, increase the precise support of finance to enterprises, realize the general reduction of financing costs, increase the supply of funds from the scale, and reduce the financing costs of enterprises. The second is to insist on combining direct financing with indirect financing. Not only to strengthen the credit support of traditional banks to enterprises, but also to build a strong capital market and increase direct financial support to enterprises through registration systems such as the Science and Technology Board. The third is to adhere to the combination of traditional finance and modern finance. Under the impact of the epidemic, it is necessary to use modern financial technology to support enterprises. In addition, in terms of fiscal policy, the promotion of tax cuts and fee reduction policies has come into effect, reducing the burden on market players.