Small loan company reformed to set up villages and towns bank encounters high threshold

Xinhua Shanghai June 21: Small loan Company restructuring set up villages and towns bank encounter high threshold China Banking Regulatory Commission has issued a "small loan company restructuring the establishment of village and township banks interim provisions", the microfinance companies risk coverage, non-performing assets and other aspects of new regulatory indicators, The requirements of the banking financial institutions as the main initiator, the industry as the threshold is too high.　　Experts suggest that small lenders should be given more space to allow "grassroots finance" to explore their own village and township banks. High threshold isolation risk the China Banking Regulatory Commission (CBRC) stipulated that the entry conditions for small loan companies to be transformed into village banks should be emphasized. Including 3 years of continuous business and above, checkup no loss after ledger, and the last two consecutive fiscal year, the non-performing loan rate of less than 2%;　　In order to reflect agriculture and serve the local economy, microfinance company assets should be based on loans, the last 4 quarters at the end of the total balance of loans accounted for the proportion in principle is not less than 75%, and all loans in the county area, the last 4 quarters at the end of the total loan balance accounted for the proportion of all loans is not less than 60%. "The regulations reflect a cautious approach by management to the standardization of operation and risk segregation in village and township banks.　　"said Lu Hongjun, dean of the Shanghai Institute of Finance. The industry's most concern is that the regulation of the main sponsors of village and township Banks, the largest shareholder must be qualified banking institutions. Lu Hongjun that this is also due to risk prevention considerations.　　Objectively speaking, microfinance companies need to be further strengthened in information management, risk control and financial management, and the participation of commercial banks is beneficial to control risks. "The essential difference between a village bank and a microfinance company is that a village bank can absorb public deposits, therefore, the micro-loan company is transformed from a loan-only professional loan institution into a village bank that can both borrow and deposit, and it needs to be regulated further in order to ensure safe operation and fundamentally protect the interests of depositors. Prevent the mistakes of the rural foundation of the last century in the 90.　　"Small lenders Weishing but in the eyes of many microfinance companies, the rules are as cold as water, making the enthusiasm for private capital, which is expected to gradually transition to village banks through the creation of microfinance companies, to plummet." "Under the current policy framework, small loan company profit space is very small, operating risk is very large, private capital is willing to enter this field, is directed at the prospect of village and township banks." "Wenzhou SME Development Association president Zhou said," if the 3 years of painstaking management, asset quality to achieve a series of regulatory indicators, but to the control of the transfer to commercial banks, not become a Weishing? Zhang Yu, general manager of Shanghai Songjiang June-he microfinance company, also said that microfinance companies are doing what banks do not want to do, mainly to meet the needs of small and medium-sized enterprises and micro-enterprise funds, more flexible mode of operation.　　If the commercial banks in the main, its business thinking back to the original "mold", whether it can reflect the purpose of supporting small and medium-sized enterprises? Reporter was informed that because of fear can notSuccessfully restructured into a village bank, the Pudong Jin Pu Microfinance Company, which was approved in October last year, has not been able to open because of the provisional decision of individual minority shareholders to withdraw. Zhou said, according to the current path design, the best result of private capital is to participate in village and township banks. "It would be good to start directly in the preparation, and there is no need to spend at least 3 years ploughing a microfinance company," he said. "Grassroots finance" look forward to more space, director of the Centre for Financial Research at CEIBS International Business School, Zhang said at present, China's credit system is not perfect, especially in the county under the vast rural areas, small loan companies from the "only to save" professional lending institutions restructured into deposit-taking village and township banks, do emphasize the operation of security and protect the interests of depositors.　　But the small loan company's management idea, with the commercial bank's mentality completely different, the commercial bank own business model, also may not be perfect, should allow "the grass-roots ecology" the small loan company to explore own village and town Bank's road. Reporters found that the small loan company's survival and profitability is not ideal.　　Because its nature does not belong to the financial institution, must according to the business enterprise to pay taxes, the small loan company must bear 5.56% business tax and the additional, 25% Enterprise income tax. Shanghai Songjiang long Xin Micro-loan company general manager Chen Xinxin to reporters calculate: If the company registered capital of 56 million yuan can be credit, in accordance with the average 15% interest rate, the annual interest income of 8.4 million yuan, remove the business tax 467,000 yuan, rent, wages and expenses 2 million yuan, the remaining profit is less than 6 million yuan,　　Minus 1.483 million yuan enterprise income tax, after-tax profit of 4.45 million yuan, the shareholder investment yield is only 7.9%, dividend less than 1 points, enthusiasm greatly discount. Zhang suggested that from the perspective of risk control, the regulatory authorities could raise the capital adequacy ratio and reserve requirement ratio of the village banks rather than necessarily requiring commercial banks as the main sponsors; It could raise its current 0.5 times-fold leverage and allow it to finance banks at interbank rates rather than lending rates, so that even small lenders cannot be transformed into village banks, and there is a certain margin of profit.