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Lin Jianhua, | of China Finance: to build a "five-in-one" financing service system for small and medium-sized enterprises

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Editor's Note

Under the new development pattern of "double circulation", promoting the development of small and medium-sized enterprises is an important foundation for maintaining the high-quality development of the national economy, and is a major strategic task related to people's livelihood and social stability. In recent years, the Party Central Committee and the State Council have held many meetings to emphasize support for the healthy development of small and medium-sized enterprises. Chinese Min min bank conscientiously implements the decision-making and deployment of the Party Central Committee and the State Council, under the direct command of the Financial Commission of the State Council, continues to implement two monetary policy tools that directly reach the real economy, and carries out in-depth projects to improve the financial service capabilities of small and medium-sized and micro enterprises of commercial banks, and the financing of small and micro enterprises continues to show a trend of "volume increase, area expansion, and price reduction", and the convenience of enterprise financing has been greatly improved. All financial institutions have fulfilled their original mission of serving small and medium-sized enterprises, deepened the supply-side reform of small and medium-sized and micro financial services, and continuously improved the quality and efficiency of financial services for small and medium-sized enterprises. This magazine specially plans a column to share the advanced experience of financial support for the development of small and medium-sized enterprises, and to discuss how finance can better serve small and medium-sized enterprises and promote the high-quality development of the national economy.

Lin Jianhua, | of China Finance: to build a "five-in-one" financing service system for small and medium-sized enterprises

Author| Lin Jianhua ,President of Wuhan Branch of Chinese Bank"

Article | China Finance, No. 20, 2021

Small and medium-sized enterprises are the source of vitality for economic development and an important carrier for creating jobs and ensuring people's livelihood. The Party Central Committee and the State Council attach great importance to the development of small and medium-sized enterprises, and require strengthening inclusive financial support for small and medium-sized enterprises. Since 2021, Chinese Minmin Bank has issued a number of policies and measures, extended the implementation of two monetary policy tools that directly reach the real economy, carried out in-depth financial service capacity improvement projects for small and medium-sized enterprises, added 300 billion yuan of small refinancing lines, and increased the bailout and support for small and medium-sized enterprises. Chinese Minmin Bank Wuhan Branch (hereinafter referred to as "Wuhan Branch") conscientiously implements relevant policy arrangements and guides financial institutions in the province to continuously increase financial support for small and medium-sized enterprises. At the same time, combined with the actual situation of Hubei Province, we will make every effort to build a "five-in-one" financing service system for small and medium-sized enterprises with policy guidance, information sharing, channel docking, service adaptation, incentives and constraints, and continue to improve the availability and convenience of financing for small and medium-sized enterprises.

Smooth the transmission channels of monetary policy, strengthen the use of policy tools, and support financial institutions to expand credit delivery to small and medium-sized enterprises

Since 2021, on the basis of the financial policies that have been introduced in the early stage to benefit enterprises, especially the financial policies to support small and medium-sized enterprises, Chinese Bank has further increased policy support, continued to implement two monetary policy tools that directly reach the real economy, added 300 billion yuan of small refinancing lines, and deepened the reform of the loan market quotation rate (LPR). The Wuhan Branch deployed at the first time and solidly promoted the implementation of monetary policy tools in Hubei Province. The first is the responsibility for compaction. The People's Bank of China at all levels and relevant financial institutions in the province are required to implement the "number one" responsibility system, strengthen organizational leadership, set up special work classes, increase the intensity of work promotion, and clarify work responsibilities and goals. The second is to thoroughly understand the policy. Comprehensively sort out the policy spirit of refinancing and rediscounting and LPR reform in recent years, clarify the policy evolution path, accurately grasp the policy connotation, strengthen policy guidance for the People's Bank of China at all levels and relevant financial institutions in the province, and ensure that the implementation of monetary policy is impartial. The third is precise management. Urge the People's Bank of China at all levels in the province to strengthen the review of the re-loan declaration account, optimize the review process, and improve the efficiency of re-loan approval and issuance. Continue to promote the implementation of self-discipline of deposit interest rates, explicit annualized interest rates of loans, and off-site deposit management to deepen LPR reform measures. The fourth is to report and assess. Establish a weekly monitoring and monthly reporting system, monitor the loan accounts of local legal person financial institutions on a weekly basis, report the relevant work situation in various localities on a monthly basis, and supervise the progress of work.

As of the end of September 2021, the balance of small refinancing loans of hubei province was 43.97 billion yuan, the rediscount balance was 11.31 billion yuan, the province's "Inclusive Small and Micro Enterprise Loan Extension Support Tool" recordal deferral principal was 48.62 billion yuan, which could provide incentive funds of 486 million yuan to corporate banks, benefiting 63,000 enterprises; the "Inclusive Small and Micro Enterprises Credit Loan Support Plan" recorded credit loan principal of 18.61 billion yuan, which can provide preferential funds to corporate banks of 7.42 billion yuan, benefiting 90,000 enterprises. By the end of August 2021, the balance of loans for small and medium-sized enterprises in the province was 2,349.69 billion yuan, accounting for 61.7% of all enterprise loans, of which the balance of inclusive small and micro loans was 549.32 billion yuan, an increase of 22.5% year-on-year, and the interest rate of newly issued inclusive small and micro loans in August was 5.4%, down 0.2 percentage points from the beginning of the year.

Lin Jianhua, | of China Finance: to build a "five-in-one" financing service system for small and medium-sized enterprises

Establish a financing credit platform for small and medium-sized enterprises, strengthen credit information sharing, and improve the accuracy of credit profiles of small and medium-sized enterprises

Practice has proved that promoting the aggregation and sharing of Public Credit Information is conducive to solving the problem of asymmetric information between banks and enterprises, and is of great significance for banks to more comprehensively grasp the production and operation status of enterprises, more accurately profile the credit of enterprises, and judge the risks of enterprises. In April 2021, Hubei Province promulgated the Local Financial Regulations, which regard the promotion of the construction of financing credit platforms for small and medium-sized enterprises as an important responsibility of local financial work. Wuhan Branch actively promotes the construction of the financing credit platform for small and medium-sized enterprises in the province, and cooperates with the provincial local financial supervision bureau to build a financing credit platform for small and medium-sized enterprises in accordance with the framework of "unification of the province, separate construction of provinces and cities, and data sharing".

At present, the financial institutions at the provincial level may obtain the credit information inquiry results online after obtaining the authorization of the enterprise according to the credit inquiry needs, so as to achieve "zero distance" inquiry. The government management end can coordinate and summarize government information resources, carry out data governance, and carry out overall management of data after security certification. In terms of data aggregation, the Hubei SME Financing Credit Platform integrates data and integrates about 232 million authoritative government affairs data under the premise of safety, legality and compliance, providing multi-dimensional credit information data support for financial institutions' credit decision-making. As of the end of August 2021, the Hubei SME Financing Credit Platform has supported the financing of 77,000 enterprises, granting 67,000 credits, with a total credit of 208.7 billion yuan.

Create the "Chutian Loan Code" to provide convenient financing docking channels and support financing on the "code" of small and medium-sized enterprises

For small and medium-sized enterprises, most enterprises, especially start-up enterprises, have not established cooperative relations with banks before, and they often cannot quickly find suitable financing channels when they need financing. For banks, there are a large number of small and medium-sized enterprises, and there are also problems such as high costs and low scale effects for banks to acquire customers. The lack of efficient and smooth financing channels between banks and enterprises restricts the timely and effective docking of supply and demand of funds and services of banks and enterprises. Wuhan Branch uses financial technology to create the "Chutian Loan Code" to support small and medium-sized enterprises to scan codes online and raise funds on the "code", so as to achieve one-stop services such as release, acceptance, docking and feedback of financing needs.

First, the whole process of online application, the process is convenient. "Chutian loan code" background system and Hubei Provincial Market Supervision Bureau industrial and commercial registration database interconnection, small and medium-sized enterprises in the province (including individual industrial and commercial households) do not need to register and log in, through Alipay, WeChat and other APP scan code to enter the financing application interface, only enter the name keywords can match the complete and accurate information of the enterprise, online selection of banks with cooperation intentions.

Second, the demand is directly connected with one key, and the service is accurate. Enterprises can accurately select bank outlets at the county (district) level according to geographical preferences, and can choose up to two intended banks at the same time. The main banking institutions in the province have achieved system docking with the "Chutian Loan Code", and banks can directly obtain enterprise financing application and industrial and commercial registration information in the business system, complete the internal part of the office, supervision and other operational steps, and interactive feedback on the progress of financing processing.

The third is to grasp the progress in real time and be open and transparent. Banks have established an efficient response mechanism to implement the "1351" and "code" financing service model of accepting financing needs within 1 day, investigating and collecting information within 3 days, preliminarily implementing credit conditions within 5 days, and feedback on the handling within 1 day, for a total of 10 days. Enterprises can scan the code again to view the latest processing progress and bank handling opinions, and the financing efficiency is greatly improved.

The fourth is dynamic monitoring and supervision, and the quality and efficiency are improved. The background builds a monitoring indicator system, in accordance with the three situations of "meeting the credit conditions can be timely loans", "temporarily not meeting the conditions but can meet the credit conditions after cultivation", "not meeting the requirements of industrial policies or poor credit records", the scanned code enterprises are classified into the three types of credit, cultivation and attention lists, and the list information is updated in real time, dynamically adjusted, and used as a reference basis for supervising and handling various localities and banking institutions to carry out financing and cultivation counseling. As of September 30, 2021, the province's small and medium-sized enterprises and other market entities have scanned the code to submit 778 financing applications, 164 banks have completed financing, issued loans of 514 million yuan, weighted average interest rate of 4.37%, and the average settlement time is 4 days.

The three dimensions of "dots and lines" focus on service optimization, accurately solve prominent financing problems, and improve the adaptability of financial services for small and medium-sized enterprises

The "point" dimension implements the credit cultivation project for small and medium-sized enterprises, focusing on solving the demands of enterprises that reflect financing difficulties. Wuhan Branch shall build a unified credit cultivation platform for small and medium-sized and micro enterprises in the province, and in accordance with the working methods of joint consultation, classification handling, bank sponsorship, and one enterprise and one policy, the county (city, district) government and relevant economic departments will recommend to the financial sector the list of small and medium-sized and micro enterprises with potential and market financing difficulties, organize financial institutions to carry out one-on-one docking services, give timely credit support to those that meet the loan conditions, and for those that temporarily do not meet the loan conditions, follow the credit cultivation counseling matters proposed by the sponsoring financial institutions. Carry out policy counseling item by item, and through batch counseling and rolling advancement, effectively help small and medium-sized micro and medium-sized enterprises that reflect financing difficulties to achieve financing or meet financing conditions through credit cultivation. As of the end of August 2021, government departments at all levels in the province have recommended 1294 enterprises to be included in the credit cultivation project, the host bank has docked 1164, determined the list of counseling matters for 205 cultivation enterprises, and issued loans of 3.39 billion yuan to 394 enterprises that meet the credit conditions.

The dimension of "line" implements the "financial chain length system" of the industrial chain, promotes the integration of financial resources and optimizes the allocation, and meets the financing needs of core enterprises in the industrial chain and upstream and downstream small and medium-sized enterprises. The "Hubei Provincial Key Industrial Chain "Financial Chain Length System" Work Plan was jointly issued, and the heads of provincial banking financial institutions served as the "financial chain chiefs" of 10 agriculture-led industrial chains and 16 key manufacturing industrial chains. Wuhan Branch and branches under the jurisdiction of Hubei take the lead in the "financial chain length system" work, and formulate specific work plans and programs for the financial chain length system of key industrial chains in a targeted manner to meet the differentiated and personalized financial service needs of different industrial chains and different links of industrial chains. As of the end of August 2021, the balance of loans for the first batch of four key agricultural industry chains was 9.88 billion yuan, an increase of 2.25 billion yuan in that year. At the same time, in view of the fact that the main assets of industrial chain enterprises such as shiitake mushrooms, wormwood, and green brick tea are movable property, the Guiding Opinions on Promoting the Development of Movable Property Financing Business in Hubei Province were issued, and the application of movable property financing in the relevant industrial chain was vigorously promoted, and Suizhou Rural Commercial Bank innovated a third-party supervision of movable property floating pledge loans, and issued loans of 27 million yuan for the core enterprises of the industrial chain. In view of the excellent reputation of some intelligent manufacturing equipment, optical communication core enterprises, and close cooperation with upstream suppliers, the "Several Measures on Promoting the Development and Innovation of Supply Chain Bill Business in Hubei Province" was issued to vigorously promote the use of supply chain bills. In addition, continuing to promote accounts receivable financing, government procurement contract financing and other businesses, from January to September 2021, the number and amount of accounts receivable financing confirmed online by the Zhongzheng platform accounted for 41.6% and 27.4%, an increase of 2.7 and 8 percentage points respectively year-on-year.

The dimension of "surface" carries out the expansion of the first loan and industry docking, cultivates the credit relationship between banks and enterprises, and improves the financing availability rate of small and medium-sized enterprises. Promote the integration of government and bank resources in Wuhan, Yichang and other places, establish "online + offline" and focus on serving "zero credit" small and medium-sized enterprises, and provide services for the first loan of small and medium-sized enterprises. Strengthen cooperation with the Provincial Market Supervision Bureau, dynamically obtain the registration information of market entities in the province and the information of financial institutions and loan enterprises, establish a list of non-loanable households for small and medium-sized and micro enterprises in the province, and organize financial institutions to carry out financing needs mapping in combination with the list. From January to August 2021, the number of new inclusive small and micro first-time loan households was 77,900, an increase of 17,200 households year-on-year. In view of the cultural and tourism industries affected by the epidemic, the Provincial Department of Culture and Tourism jointly issued the "Several Measures on Supporting the Prosperity and Development of Small and Medium-sized Cultural Enterprises and Tourism Enterprises with Inclusive Financial Policies", held 2 policy publicity activities, and promoted financial institutions to innovate more than 20 characteristic cultural and tourism financial products. Carry out cultural tourism bank-enterprise docking activities throughout the province, organize financial institutions to map the financing needs of 998 key cultural and tourism small and medium-sized enterprises, and support 225 enterprises to obtain loans of 4.2 billion yuan.

Give full play to the role of "several lifts", strengthen the incentive and constraint mechanism, and mobilize the enthusiasm of small and medium-sized enterprises in financial services

In order to further reduce the loan processing links, the number of application materials and the processing time of small and micro enterprises, and improve the efficiency of loan processing for small and micro enterprises, Wuhan Branch has established a "four lists" financial service mechanism for small and micro enterprises of financial institutions in Hubei Province. The "four lists" are respectively the list of loan authorization, credit granting, acceptance of complaints and due diligence exemption lists for small and micro enterprises of financial institutions, of which the authorization list requires financial institutions to announce the specific approval authority of their small and micro enterprise loans to the public; the credit list requires financial institutions to publicize to the public the conditions for granting credit to their small and micro enterprises, application materials, handling procedures, processing time limits, etc.; the acceptance of the reply list requires financial institutions to feedback the preliminary opinions on loan handling to the loan applicant enterprises within 3 working days The due diligence exemption list requires financial institutions to publicize the internal identification standards and processes for due diligence exemption to the system, and increase the proportion of small and micro credit practitioners exempted from liability. At present, 23 major banking institutions at the provincial level and 327 banks and outlets in 17 cities and prefectures have completed the publicity of the "four lists". At the same time, the Wuhan branch links the financial service work of financial institutions, small and medium-sized enterprises, with the use of monetary policy tools such as refinancing and rediscounting, the evaluation of credit policy-oriented effects, and comprehensive evaluation, and increases the intensity of assessment and evaluation.

In addition, the Wuhan Branch has also strengthened coordination and cooperation with relevant government departments, and will give financial incentives to the financial institutions handling the new inclusive small and micro first loans issued by financial institutions in that year according to 0.5 ‰ of the actual loan amount. The part of the loan with a guaranteed loan exceeding LPR-150BP is discounted by the Government. Make overall arrangements of 100 million yuan per year, adopt the method of awards in lieu of compensation, and support local government financing guarantee institutions to expand the scale of business, reduce guarantee rates, establish a continuous capital replenishment mechanism and a pool of sub-insurance compensation funds. At the same time, the financial service work of small and medium-sized and micro enterprises in various localities and financial institutions will be included in the assessment of the creation of financial credit cities (states and counties), the county economy and rural revitalization, and promote all localities to create good conditions for financial institutions to serve the financing of small and medium-sized enterprises.

Policy recommendations

At present, there are still some institutional and institutional problems in financial support for the development of small and medium-sized enterprises, coupled with the increasingly complex external environment faced by the development of enterprises, and the financing difficulties of small and medium-sized enterprises have several new manifestations. From a medium- and long-term perspective, on the basis of implementing the various financial preferential policies that have been introduced, we should also continue to exert efforts and make long-term achievements from the "three-pronged approach" of the government, finance and enterprises, and continue to alleviate the problem of financing difficulties and expensive financing for small and medium-sized enterprises.

At the government level, we should continue to optimize the business environment and financial ecological environment, and support small and medium-sized enterprises to improve their financing capabilities. Improve mechanisms for sharing credit information for small and medium-sized enterprises, actively establishing platforms for sharing credit information for small and medium-sized enterprises, strengthening the aggregation, sharing, disclosure, and development and utilization of Public Credit Information. Promote the establishment of joint incentive and punishment mechanisms, recording enterprises' violations of laws and regulations in the credit archives of institutions and their legally-designated representatives, principal responsible persons, and relevant responsible persons, and carrying out cross-departmental and multi-level joint disciplinary action for untrustworthiness. Standardize private lending behavior, severely crack down on illegal financial activities such as financial fraud, malicious debt evasion, and illegal fund-raising, strengthen the popularization and publicity of financial knowledge, strengthen the awareness of financial risk prevention of small and medium-sized enterprises, and enhance the ability to use financial tools. Explore the establishment of a "capital pool" for loan risk compensation, provide loan discounts and incentives for small and medium-sized enterprises, capital replenishment by government financing guarantee institutions, etc., and improve the loan risk reward and compensation mechanism. Establish a government financing guarantee assessment and evaluation system, highlight its quasi-public product attributes and policy nature, gradually cancel profit assessment requirements, increase the magnification of guarantees, and reduce guarantee rates.

At the financial level, we should continue to improve policy measures and increase support for the financing of small and medium-sized enterprises. Financial management departments strengthen the counter-cyclical adjustment and structural adjustment functions of monetary policy, implement prudent monetary policy, maintain reasonable and sufficient liquidity in the banking system, and guide financial institutions to increase credit support for small and medium-sized enterprises. Carry out the supervision and evaluation of financial services for small and micro enterprises of commercial banks, continue to implement the requirements of "two increases" in the growth rate of inclusive small and micro enterprise loans and the number of households, and further relax the tolerance of non-performing loans of inclusive small and micro enterprises. Clean up and standardize unreasonable and illegal financing charges, and strengthen supervision and inspection of illegal charges, loan tying, passing on costs, deposit-loan linkages, and other problems that increase the actual financing costs of high school and small and micro enterprises in disguise. Commercial banks strengthen the "hard technology" and "soft environment" to support the development of small and medium-sized enterprises, and make full use of financial technology to empower loan pricing, risk control, information mining and integration, improve the credit identification ability of small and medium-sized enterprises, and continuously increase the proportion of credit loans issued. Continue to optimize the internal resource allocation, performance appraisal and due diligence exemption arrangements to support the financing of small and medium-sized enterprises, and strive to build a long-term mechanism of "dare to lend, willing to lend, able to lend, and will lend".

At the enterprise level, it should operate in a sound and honest manner and continuously improve its own credit level. On the one hand, focus on the main business, work cultivating core technologies, core processes, and core capabilities, and improve their market competitiveness; on the other hand, improve the financial system, reasonably choose financing methods, and control financing leverage. In addition, they should also operate in good faith in accordance with the law, standardize social security, taxation, and other payment behaviors, and continue to accumulate identifiable and usable credit information for themselves. ■

(Editor-in-Charge Ji Wei)

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