China's financial system strives to protect market players: let banks "dare to lend, willing to lend, will lend, and be able to lend"
China News Service, Beijing, September 10 (Reporter Wei Xi) On September 10, the People's Bank of China held a series of press conferences on "Financial Support to Protect Market Entities".
Mao Hongjun, the first-level inspector of the Inclusive Finance Department of the China Banking and Insurance Regulatory Commission, said that in recent years, the China Banking and Insurance Regulatory Commission has issued a series of differentiated encouragement and support policies in terms of credit allocation, capital supervision, bad tolerance, due diligence, and external environment construction. .
This year, the China Banking and Insurance Regulatory Commission has mainly carried out its work in three aspects.
Data map: People's Bank of China.
China News Agency issued Yang Mingjing photo source: CNSPHOTO
The first is to promptly introduce financial safeguard measures to benefit financial companies and guide banks to accurately increase credit allocation.
The second is to combine phased relief with the construction of a long-term mechanism to further strengthen regulatory incentives and constraints.
Clarify the tolerance standard that the non-performing loan ratio of inclusive small and micro enterprises is higher than the non-performing ratio of various loans within three percentage points.
For non-performing loans of small and micro enterprises that occurred due to the epidemic, if there is sufficient evidence, it should be regarded as force majeure, and relevant personnel shall be exempted from accountability.
The third is to coordinate efforts from multiple departments to further optimize external supporting support.
Promote taxation departments to continue to exempt the interest income of inclusive small and micro enterprise loans from value-added tax.
"Here I want to ask, why do the grass-roots institutions and personnel of the bank hesitate and reluctant to lend?" Mao Hongjun asked and answered at the press conference: because it is not cost-effective, the performance is low or no performance.
Why are you afraid of lending but not daring to lend?
Because of the high rate of non-performing loans, they are afraid of accountability.
She pointed out that the establishment of a sound mechanism for small and micro enterprises to dare and willingly lend, in the final analysis is to solve the problem of endogenous motivation for banks to serve small and micro enterprises.
The China Banking and Insurance Regulatory Commission has issued a series of differentiated regulatory incentive policies and guiding measures in recent years to solve these problems one by one and promote the formation of a long-term mechanism for banks.
One is the differentiation on the capital side.
By guiding commercial banks to give preferential treatment to small and micro enterprise loans in the pricing of internal fund transfers, the problem of the ineffectiveness of small and micro enterprises at the bank's grassroots level is solved.
At present, the national commercial banks' loans to small and micro enterprises are all given preferential treatment based on not less than 50 basis points in the internal fund transfer pricing, and some banks’ preferential strength has reached more than 100 basis points.
The second is the differentiation of internal assessment.
Commercial banks are required to increase the weight of the indicators of inclusive finance in the performance appraisal of their branches to more than 10%, so as to solve the problem of no performance in small and micro lines.
The third is to implement differentiated risk management in response to the high rate of non-performing loans.
"Regulatory policies have clearly stated that the non-performing rate of inclusive small and micro enterprise loans can be higher than the tolerance of the non-performing rate of various loans within three percentage points. These are the most basic requirements."
The fourth is to implement the differentiation of due diligence and exemption for "fear of accountability."
Guo Xinming, President of the Nanjing Branch of the People's Bank of China, said at the press conference that Jiangsu is a major manufacturing province and a major foreign trade province with many small and medium-sized enterprises.
Facing the unprecedented impact brought by the epidemic, the Nanjing Branch of the People's Bank of China integrated financial support to stabilize enterprises and ensure employment in the long-term mechanism and capacity building of “dare to lend, willing to lend, meeting lending, and able to lend”, and achieved significant results.
At the end of July, the balance of domestic and foreign currency loans of financial institutions in Jiangsu Province was 15.1 trillion yuan (RMB, the same below), a year-on-year increase of 16.4%, and the growth rate was 1.8 percentage points higher than the same period last year; the balance of loans to small, medium and micro enterprises was 6.8 trillion yuan, a year-on-year increase of 14.5% , The growth rate increased by 4.7 percentage points over the same period last year; the balance of inclusive small and micro loans was 1.32 trillion yuan, an increase of 39.3% year-on-year; domestic and foreign currency loans for manufacturing increased by 130.2 billion yuan from the beginning of the year, a 7-year high.
Xu Jiang, chief expert of the Agricultural Bank of China and general manager of the Inclusive Finance Division, said that the Agricultural Bank has allocated special incentive wages and strategic expenses to create a positive atmosphere for "Wish Loans".
The industry’s first special small and micro financial bonds for epidemic prevention and control purposes were issued to individually match and ensure the scale of inclusive credit. This year, the scale of inclusive financial credit is 240 billion yuan, and the scale of “agriculture, rural areas and rural areas” is 500 billion yuan; established Differentiated inclusive policies and systems, restructured credit business models and processes, and provided sufficient resources and institutional guarantees for “energy loans”.
Accelerate digital transformation, enable technology to empower inclusive financial services, and provide strong support for “conference loans”.
Improve the intelligent level of risk prevention and control, implement the "fault tolerance and correction" policy, and have issued three due diligence exemption documents for small and micro enterprises. This year, another 14 exemption regulations have been issued, forming a benign mechanism for "dare to loan".
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