Setting by the financial committee in 2020! Focus on the financing of small and medium-sized enterprises and clear four directions

category:Finance
 Setting by the financial committee in 2020! Focus on the financing of small and medium-sized enterprises and clear four directions


Improve the policy arrangement of differentiated supervision

The meeting pointed out that small and medium-sized enterprises are an important foundation for building a modern economic system and promoting high-quality economic development, and play an important role in supporting employment, stabilizing growth and improving peoples livelihood. We should adhere to the two unswervingly, fully understand the importance of financial support for the development of small and medium-sized enterprises, continue to increase support, and effectively alleviate the problem of financing difficult and expensive.

At the meeting, it was required to study and issue relevant measures to further ease the financing difficulty and high cost of small and medium-sized enterprises as soon as possible. Specifically speaking, it includes four measures, one of which is to use a variety of monetary and credit policy tools, implement differentiated regulatory arrangements, improve the assessment and evaluation mechanism, and form an effective incentive for financial institutions to fulfill the main responsibility of SMEs financial services.

Xiao Yuanqi, chief risk officer and chief of General Office of China Banking and Insurance Regulatory Commission and press spokesman, said recently that it is impossible to alleviate the financing difficulty and high cost of small and medium-sized enterprises overnight. In the future, institutions should continue to be encouraged to invest more financial resources in the small and micro fields of private enterprises. Regulatory policies, internal incentive mechanisms of banks and other aspects need further breakthroughs and improvements.

In terms of monetary policy, many analysis points out that this year, it is expected to provide banks with sufficient low-cost funds, promote the cost reduction of the banks liability side, and then drive the pricing downward of the loan side, and reduce the comprehensive financing cost of the real economy through targeted reduction, refinancing, rediscount and other measures, combined with interest rate reduction measures.

Since last year, inclusive finance has made remarkable progress. At present, the loan balance of small and micro enterprises with inclusive criteria has exceeded 11 trillion yuan. According to the deployment of relevant departments, next year, we will also guide banks to further increase their support for small and micro enterprises and other inclusive financial fields. The head of the CIRC recently revealed that, specifically, there are three objectives:

1. Strive to increase the loan of inclusive small and micro enterprises by more than 2 trillion yuan next year, and the loan growth rate should be higher than that of various loans. The loan growth rate of inclusive small and micro enterprises of five large banks of CCCC is higher than 20%.

2. We will further expand the coverage of loans to small and micro businesses, and strive to increase loans to more than 3 million small and micro businesses next year.

3. In terms of cost reduction, we will strive to reduce the comprehensive cost of inclusive small and micro enterprise loans by another 0.5 percentage points next year.

The relevant head of the CIRC added that in order to achieve the above objectives, the following aspects will be taken into consideration:

First, we will continue to deepen supply side structural reform, increase the supply of credit to small and micro businesses, guide banks to segment customer groups, avoid building small businesses and promote customer sinking. Support policy banks to increase cooperation with small and medium-sized banks by means of loan transfer.

The second is to study and issue the supervision and evaluation methods of small and micro financial services of commercial banks, improve the long-term mechanism of evaluation of commercial banks, study the flexibility of moderately increasing the non-performing tolerance of small and micro enterprises, and implement the due diligence exemption policy.

Third, further promote small and micro enterprises to reduce financing costs, and guide banks to reasonably determine loan interest rate pricing of small and micro enterprises according to LPR mechanism.

On the whole, after one years adjustment, the loan interest rate of small and micro enterprises has dropped relatively low. Among them, the interest rate of large state-owned banks is stable and falling, basically in accordance with the pricing trend of LPR; joint-stock commercial banks have room for further interest rate reduction; for the part of local small and medium-sized banks with relatively high interest rate, we will also guide the banks to further adjust the loan interest rate. Person in charge of the CIRC.

Fourth, adjust the loan mode of small and micro enterprises, mainly expand the proportion of renewal loan and credit loan, and reduce the excessive dependence on mortgage guarantee.

Fifth, in-depth study and promote the construction of enterprise credit information sharing platform to reduce the cost of bank loans for small and micro enterprises.

In addition to the above-mentioned measures, the financial committee meeting also deployed the following three measures:

We will deepen the structural reform of the financial supply side and improve a modern financial system that is highly adaptable, competitive and inclusive;

To supplement the capital of small and medium-sized banks through multiple channels, and to promote the ability of lending to small and medium-sized enterprises;

Among them, in terms of deepening the structural reform of the financial supply side, the recently released guiding opinions of the China Banking and Insurance Regulatory Commission on promoting the high-quality development of the banking and insurance industry (hereinafter referred to as the opinions) plans to achieve more optimization of the financial structure by 2025 and form a multi-level, wide coverage and different banking and insurance institution system. We should strengthen the financial service capacity of local small and medium-sized banks. Urban commercial banks should establish a prudent management culture, reasonably determine the operation radius, and serve local economy, small and micro enterprises and urban and rural residents. Rural small and medium-sized banks should adhere to the orientation of supporting agriculture and supporting small markets, enhance county service functions, support the strategy of rural revitalization, and help win precise poverty alleviation.

Xiao Yuanqi said that in the past, some local small and medium-sized banks tended to expand rapidly, operate across regions and build large households. The opinions clarified the operation orientation of local small and medium-sized banks, which is also a lesson learned from the past. Next, the CBRC will promote the reform of the Provincial Association, but the reform will adopt a diversified mode according to local conditions.

Once again roll call capital supplement of small and medium-sized banks

Prior to the meeting of the financial committee, the capital replenishment of small and medium-sized banks was named for many times, which shows that the regulatory authorities attach importance to the capital level of small and medium-sized banks. Lu Zhengwei, chief economist of Societe Generale Bank, told the securities company that sufficient capital is the capital for banks to offset risks and realize business expansion, especially in the economic downturn period, the banks non-performing loans continue to be exposed, which need to increase the write off efforts, and to support the real economy by increasing the amount of credit loans, which need to be supported by sufficient capital.

The ways of bank capital supplement are mainly divided into two categories: one is endogenous capital supplement, which mainly relies on profit retention; the other is exogenous capital supplement, which includes IPO, directional issuance, preferred stock, perpetual debt, secondary capital debt, convertible bond, etc.

In recent years, although the issuance of capital supplement tools in the banking industry has been in full swing, the issuers are still large state-owned banks, joint-stock banks, and small and medium-sized banks such as urban commercial banks and agricultural commercial banks have relatively weak external capital supplement ability. According to rough statistics, in 2018, the issuance of capital supplement bonds (including perpetual bonds and secondary capital bonds) of commercial banks reached nearly trillion yuan, but the financing scale of urban commercial banks and agricultural commercial banks was less than 10%. On January 7, ICBC announced that the board of directors approved the issuance of new capital instruments with a total amount of no more than 80 billion yuan.

In order to broaden the channels of external capital supplement for small and medium-sized banks, the regulators have taken actions. In July last year, the regulatory authorities issued a document allowing non listed banks with more than 200 shareholders to issue preferred shares. In addition, the newly launched bank perpetual bonds last year were further expanded to urban commercial banks. Taizhou bank, Huizhou commercial bank and Luzhou bank were successively approved to issue perpetual bonds in the domestic market.

Preferred stock and perpetual debt open the door to small and medium-sized banks, which is also conducive to optimizing the capital structure of small and medium-sized banks. From the perspective of capital instruments and supplementary channels at all levels of Chinas commercial banks, the core tier one capital mainly depends on common shares and retained earnings; other tier one capital instruments currently include preferred shares and perpetual bonds. Before the creation of perpetual bonds in 2019, small and medium-sized banks that are not listed or listed on the new third board cannot issue preferred shares, and many other tier one capital of small and medium-sized banks is close to 0. Xiao Yuanqi said that at present, the pressure of capital replenishment in Chinas banking industry is still relatively large. Although banks can rely on the way of profit retention to replenish capital, but the internal channels alone are not enough to support business development, and banks also need to expand external capital replenishment channels. From the perspective of capital structure of Chinas banking industry, core tier one capital is relatively sufficient, but other types of capital adequacy ratio is relatively low, and non core tier one capital supplement tools are relatively less. By contrast, there are many non core tier one capital replenishment tools in foreign banking industry, and the trigger conditions of capital replenishment tools write down and share transfer are clear and strictly enforced. In the next step, our country should also further refine and clarify the conditions of write down and share transfer of capital supplement tools, and strictly implement them. Source: responsible editor of securities companies in China: Yang bin_nf4368

Preferred stock and perpetual debt open the door to small and medium-sized banks, which is also conducive to optimizing the capital structure of small and medium-sized banks. From the perspective of capital instruments and supplementary channels at all levels of Chinas commercial banks, the core tier one capital mainly depends on common shares and retained earnings; other tier one capital instruments currently include preferred shares and perpetual bonds. Before the creation of perpetual bonds in 2019, small and medium-sized banks that are not listed or listed on the new third board cannot issue preferred shares, and many other tier one capital of small and medium-sized banks is close to 0.

Xiao Yuanqi said that at present, the pressure of capital replenishment in Chinas banking industry is still relatively large. Although banks can rely on the way of profit retention to replenish capital, but the internal channels alone are not enough to support business development, and banks also need to expand external capital replenishment channels. From the perspective of capital structure of Chinas banking industry, core tier one capital is relatively sufficient, but other types of capital adequacy ratio is relatively low, and non core tier one capital supplement tools are relatively less. By contrast, there are many non core tier one capital replenishment tools in foreign banking industry, and the trigger conditions of capital replenishment tools write down and share transfer are clear and strictly enforced. In the next step, our country should also further refine and clarify the conditions of write down and share transfer of capital supplement tools, and strictly implement them.