Inclusive finance ensures quantity, stable price and excellent structure
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Recently, listed banks have successively disclosed their 2023 annual reports and first quarter operating data. Data show that the coverage of inclusive financial services continues to expand, and various business entities have an enhanced sense of gain. Inclusive finance plays an important role in helping to build a financial power and promote the high-quality development of the real economy. Experts said that commercial banks should continue to develop inclusive business, open up financing congestion in key areas, and enhance sustainable inclusive financial service capabilities by promoting digital inclusion.
increase financial supply
The 2023 annual performance reports of many commercial banks show that since 2023, banks have increased the supply of inclusive credit and continued to improve the availability of financial services. The coverage of inclusive financial services has gradually expanded.
Agricultural Bank of China has optimized the supply of inclusive financial credit products, strengthened the construction of the inclusive financial service system, built more than 10,000 small and micro credit business development outlets and nearly 300 small and micro specialty branches, and continued to improve its inclusive financial service capabilities.
Relying on the advantage of nearly 40,000 outlets covering urban and rural areas, Postal Savings Bank innovates financial services for “agriculture, rural areas and farmers”, urban and rural residents and small and medium-sized enterprises, becoming a pioneer and active practitioner in the field of inclusive finance in my country.
Behind the continued efforts of banks, there is also policy “increased” guidance. Especially since this year, the People’s Bank of China has given full play to the dual functions of the total volume and structure of monetary policy tools, guiding financial institutions to increase support for key areas and weak links of the national economy such as inclusive finance on the basis of strengthening credit support for the real economy. intensity. Data show that as of the end of March this year, the national inclusive small and micro enterprise loan balance was 31.4 trillion yuan, a year-on-year growth of 21.1%, which was 12 percentage points higher than the growth rate of various loans. In the first quarter of this year, the interest rate for newly issued inclusive small and micro enterprise loans nationwide was 4.42%, a decrease of 0.35 percentage points from 2023, and a cumulative decrease of 3.51 percentage points since 2018.
“Vigorously developing inclusive finance is an inevitable requirement for the high-quality development of my country’s economy. It is conducive to promoting the sustainable and balanced development of the financial industry, and is also conducive to enhancing social fairness and harmony.” Ye Yindan, a researcher at the Bank of China Research Institute, said that commercial banks can develop inclusive finance through the development of inclusive finance. Hui Financial Business can achieve customer diversification, promote cross-selling, promote the development of private banking, wealth management, and intermediary businesses, and improve the level of comprehensive income.
However, inclusive financial services have a wide range of services and a large number of customers. However, there have always been problems of high costs, high risks, and low returns. This is also a challenge that commercial banks face in the process of promoting financial benefits to enterprises. In order to resolve the difficulties and blockages in inclusive credit, multiple departments need to work together to provide financing supporting services for inclusive customer groups.
The reporter learned that in the Liaocheng Economic and Technological Development Zone in Shandong Province, the Development Zone Branch of the Industrial and Commercial Bank of China and the administrative approval service department focused on corporate financing difficulties and carried out full life cycle supporting services such as the promotion of enterprise-friendly policies, personalized customized project loans, and the implementation of preferential loan interest rates. Promote inclusive credit directly to small and micro entities, effectively reducing corporate financing costs. “With the help of the local government’s credit guarantee and project specialists, the ICBC Development Zone Branch granted the enterprise a 20 million yuan credit, which gave the company more motivation to develop new material technology.” said Li Jianjun, head of Liaocheng Beike New Material Technology Co., Ltd.
Clarify the direction of supervision
The “Notice on Doing a Good Job in Inclusive Credit in 2024” recently issued by the State Administration of Financial Supervision and Administration mentioned that this year’s inclusive credit work should be based on the requirements of serving high-quality development and form inclusive credit that is compatible with the development of the real economy. The service system can better meet the diversified financial needs of small and micro enterprises, agricultural business entities and key assistance groups.
Under the guidance of the goal of “guaranteing quantity, stabilizing prices, and optimizing structures”, the inclusive credit system has a rhythm and direction that is both inclusive and beneficial. Guo Wuping, director of the Inclusive Finance Department of the State Administration of Financial Supervision and Administration, recently stated that this year, in accordance with the decisions and arrangements of the Central Financial Work Conference, the requirements of the inclusive finance article will be implemented, and loans to small and micro enterprises, agricultural entities, and private enterprises will be integrated to form an inclusive financial system. We will adopt Huixinyi’s unified regulatory approach, conduct assessments and data disclosures, and at the same time clarify the key points of supervision.
Specifically, first, banking financial institutions are required to focus on the capital needs of small and micro enterprises and agriculture-related entities, reasonably determine the pace of credit extension, and strive to increase the number of loans in the two fields of inclusive small and micro enterprise loans and inclusive agriculture-related loans. The growth rate shall not be lower than the average growth rate of various loans. The second is to actively develop first-time loans and renewal loans. Renewal loans must be renewed as much as they should and can be renewed, encourage medium- and long-term loans that match the production and operation cycle, and promote revolving loans that can be borrowed and repaid to meet the needs of diverse market entities. financing needs.
In recent years, under the guidance of regulatory authorities, commercial banks have based on the principle of commercial sustainability and met the inclusive credit needs of more operating entities at affordable costs. Ye Yindan said that all kinds of commercial banks should focus on the needs of small and micro enterprises and residents, with the goal of promoting the operations of small and micro enterprises and boosting citizens’ daily consumption, continuously improve the quality and efficiency of serving the real economy, and steadily promote the adjustment and optimization of credit structure. For example, optimize the credit process and information, scientifically set up credit authorization authority, and reduce unnecessary links; optimize credit products, optimize and integrate loan products according to the segmented needs of different customer groups in rural areas and urban areas, and provide customers with targeted household services. Loan modes such as family loans, mortgages and pledges, and policy guarantees.
It is worth noting that inclusive credit faces greater risk challenges. How to relieve the worries of diligent credit personnel? Experts said that banking institutions should fully implement the detailed exemption system for due diligence and relieve the worries of responsible personnel. Ye Yindan believes that inclusive credit management also needs to be standardized. Banking financial institutions must strengthen the “three checks” on loans, strengthen the review of the qualifications of borrowers, establish a post-loan fund use monitoring and regular inspection mechanism, and strictly prohibit the fraud and misappropriation of loan funds. At the same time, all supervisory bureaus must pay attention to the quality of inclusive credit assets within their jurisdiction, screen and analyze clues to capital flow problems, and prompt risks in a timely manner.
Reshape service model
Technology changing banks has become a development trend in the financial industry. Commercial banks are accelerating the innovation of inclusive financial digital service models in terms of mobile banking and business processes, so that users can enjoy high-quality financial services without leaving home.
Reports from multiple commercial banks show that commercial banks focus on the pain points of financial services for inclusive groups and promote the integrated development of digitalization and inclusive finance. For example, China Construction Bank has deepened its digital inclusive model and worked in conjunction with rural revitalization to effectively solve the problems of difficult and expensive financing for small and micro enterprises, private enterprises and “agriculture, rural areas and farmers”. Agricultural Bank of China actively applies financial technology, implements precise services and precise risk control, and effectively solves the problem of information asymmetry in inclusive credit business. The asset quality of inclusive loans has remained stable.
Commercial banks are strengthening the construction of digital inclusive capabilities, deepening the application of credit information sharing, and striving to solve problems such as the lack of credit information for small, medium and micro enterprises and information asymmetry between banks and enterprises. Recently, the General Office of the State Council issued the “Implementation Plan for Coordinating the Construction of Financing Credit Service Platforms to Improve the Financing Facilitation Level of Small, Medium and Micro Enterprises” to further encourage financial institutions to make full use of credit information to optimize credit product research and development, credit assessment and risk management, etc., to better promote small and micro enterprises Financing.
In Guangxi, local banking institutions have joined forces with the tax department to achieve “direct connection” of online data, share corporate credit information, vigorously develop the “Xinyidai” and “Gui Huinong” financing models, and increase the enthusiasm of banking institutions for inclusive credit. It is reported that in the first quarter of this year, Guangxi issued bank-tax interactive loans amounting to 52.02 billion yuan, helping more than 35,000 companies solve financing problems. “Due to the lack of effective collateral, the loan application was not smooth in the early stage. However, after submitting the loan application on the bank-tax interactive digital platform, Industrial Bank Nanning Branch granted a credit of 33 million yuan, providing sufficient financial guarantee for the company to purchase raw materials.” Guangxi Engineering Technology Li Jialing, financial manager of the Research Institute Co., Ltd. said.
How to guide banking institutions to make good use of credit information and promote inclusive credit to reach more business entities? The person in charge of the Inclusive Finance Department of the State Administration of Financial Supervision and Administration said that banks are encouraged to actively connect with financing credit service platforms at all levels, query corporate credit information and credit reports, and effectively apply them in customer screening, pre-loan investigation, loan approval, post-loan management, etc. In the credit process. Banking institutions are encouraged to organically combine accumulated internal financial data with external credit information, actively use big data, artificial intelligence and other technical means to fully tap the value of data elements, provide an accurate “portrait” of enterprises, optimize credit assessment models, and improve risk management levels.
“Commercial banks are the main force in making great contributions to inclusive finance, and they must give full play to their role as leaders and vanguards in the process of digital inclusion.” Du Yang, a researcher at the Bank of China Research Institute, said that commercial banks should continue to improve their digital transformation strategies. Use financial technology as an important driving force for business development. Large state-owned commercial banks play a leading role and pay full attention to financial technology; joint-stock banks combine financial technology with their own advantageous businesses to accelerate their own transformation. At the same time, we optimized the organizational structure and promoted the implementation of the digital transformation strategy. Some banks can establish financial technology subsidiaries as an important business segment of the group’s comprehensive operations. While promoting digital transformation, they can fully establish a market-oriented competition mechanism and enhance digital inclusive service capabilities.
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