Exploration of Yangquan micro-loan Company

Microinance from in Yangquan/Liu Guibin since December 2008 Shanxi Yangquan The first batch of microfinance companies to establish, after more than half a year of promotion and development, Yangquan approved the establishment of 9 microfinance companies, Total registered capital of 595 million yuan, now 9 companies have all opened and set up loans business.　　The rapid development of Yangquan Microfinance company has played an active role in expanding the "three rural" credit investment and alleviating the financial tension of small and medium-sized enterprises and individual households. Positive effects are emerging to solve the small and medium-sized enterprises and the "three rural" funds demand results. As at the end of July 2009, the city's 9 microfinance companies issued a total of 551 million yuan loans, accounting for 92.6% of registered capital. From the perspective of loan investment, small and medium enterprises loan 393.785 million yuan, accounting for 71.51% of all loans, "three rural" loans of 52.03 million yuan, accounting for 9.44% of all loans, self-employed 62.865 million yuan, accounting for all loans 11.43%; Other 42.37 million yuan, accounting for 7.62 of all loans %。　　From the above data can be seen, more than 90% of the loans to the jurisdiction of "three rural", small and medium-sized enterprises and self-employed. As a "quasi-financial institution" between a bank and an enterprise, a micro-loan company strict adherence to the "only loan" mode, simplifying the loan process, fast loan speed, timely and effective to meet the needs of the county economy, the realization of the "three rural" economy, small and medium-sized enterprises, society and its own goal of mutual win,　　To support local economic development has made a positive contribution. To guide the private lending interest rate is obvious. From the performance of interest rates, the implementation of market-based differential interest rates, the specific interest rates by the two sides negotiated, all controlled in the loan benchmark interest rate of 4 times times within. The top 17.7, up from 4 times times the benchmark rate for the same period; 3.67, 0.906 times times the benchmark rate for the same period; the vast majority of lending rates are between twice and 4 times times the benchmark interest rate for people's banks, with a monthly interest rate of 12.25 per cent, is 2.77 times times the benchmark rate for one-year loans. Loan way to pledge, mortgage, guarantee mainly, credit loan proportion is lower, account for 78.42% and 21.58% respectively; loan term is 2 years, shortest 9 days, most is within one year of loans, accounting for all loans 90.13%, within 6 months of loans accounted for 47.26%　　The loan uses the liquidity loan mainly. From the implementation of the interest rate of micro-loan companies, all of them are strictly controlled within the stipulated ratio, meanwhile, the farmers ' loans also embody the appropriate preferential treatment, which can restrain the usury behavior of the folk, and lead the private financing price gradually to the right way.　　It has created conditions for standardizing and promoting the healthy and orderly development of private financial market. A powerful complement to the entire financial system. In recent years, although the financial services for SMEs and the "three rural" economy have improved, but the structural contradictions of financial supply and demand still exist, and the difficulty of financing remains restricted to the rapid development of county economy, small and medium-sized enterprises, "three agriculture" economy and individual industry and commerce. From the change of the ratio of deposit and loan between the two counties ' banking institutions, it can be seen that: pacification and Yu County the proportion of deposit and loan at the end of July were 33.6% and 28.2% respectively, which decreased by 17.9 and 9.3% respectively, and showed a continuous downward trend.　　The pilot project of microfinance company not only provides convenient conditions for the vast number of "three agriculture" and small and medium-sized enterprises, promotes the development of rural economy and society, but also facilitates the establishment of a multi-level financial market system to meet the needs of financial services for the construction and development of different levels of economy. In particular, microfinance companies have advantages in small-scale and emergency loans, which are relatively flexible in terms of pricing, quota, repayment mode, time limit and guarantee requirements, and have their own legal and reasonable space. The future development trend of the financial industry should be classified and stratified, that is, large enterprises, large projects to the big banks, small and medium-sized enterprises to small and medium-sized banks, micro-enterprise, private individuals, etc. to the village bank and commercial microfinance companies, so as to help all groups of financial needs can be effectively met.　　The competition and cooperation relationship between large and small banks is not 0, but more win and complement. Factors affecting sustainable development the emergence of microfinance companies can be said to be a major innovation in China's financial system reform, the role of the county economy, small and medium-sized enterprises is obvious.　　However, there are still many problems to be solved in the process of promoting development. Market positioning needs to be adhered to. The service subject of micro-loan company should be small organization, small customer, should face "three agriculture". But in the process of development, it is found that there are few services for natural persons and small enterprises, and the small proportion of microfinance business is small.　　Under the condition that the function of the formal financial services in the county financial service is weakened and the support for the county economy is declining, the microfinance company should better adhere to the financing service of the "three agriculture" economy and small enterprises, actively expand the loan coverage, and resolutely eliminate the "big family" behavior. The subject of supervision needs to be clarified.　　Yangquan Financial Office has not set up a competent department, only in the "Create a plan" explicitly will the city micro-loan company to create a leading group office in the People's Bank, specifically responsible for the day-to-day management of microfinance companies, can not achieve the comprehensive and effective supervision of micro-finance companies. Subsequent capital expansion is weak. Microfinance companies only lend, and the source of funding becomes the most critical issue for their scale expansion and sustainable development. There are currently three sources of funding for microfinance companies: Capital paid by shareholders, endowment funds and integration funds from not more than two banking institutions, while the balance of the funds obtained from the banking financial institutions shall not exceed 50% of the net capital amount. Microfinance companies are mostly private entrepreneurs, in the current external financing difficulties, corporate profits decline, operating cash flow decline in the adverse circumstances, it is not realistic to want company shareholders to put more money into microfinance companies.Furthermore, it is wishful thinking to obtain the funds from the banking financial institutions, the state-owned banks are not authorized, the local institutions are afraid of the risk, the shape is not the common ideal, in the follow-up development process, the lack of capital expansion will become the impact of microfinance companies to achieve sustainable development, bigger and stronger the most Corporate tax is significantly heavier. Due to the nature of the non-financial institutions of microfinance companies, all taxes and fees are paid strictly according to the company law, 5.575% of the business tax and 25% of the enterprise income tax, the total of more than 30% of the high tax, directly affect the interests of the investors, to a large extent also weaken the enthusiasm of the company shareholders to Local governments in the scope of authority, can not timely launch the relevant preferential support policies, will directly affect the sustainable development of micro-credit companies.　　At the same time, to a certain extent, it will force microfinance companies to "innovate" in tax avoidance, reduce the amount of tax or even not pay taxes, which is not conducive to the healthy development of microfinance companies. The goal of transformation is a long shoulder. In addition to the basic conditions for the market access of the banks, especially the banking financial institutions as the main initiators, the micro-loan company should meet certain requirements in the aspects of corporate governance, internal control, management and support for agriculture.　　There are: first, the corporate governance mechanism is perfect, internal control is sound.　　Second, considering the operational capacity and sustainable development requirements, according to the guidance of the new set up after 3 years of business and above; After checkup, no loss to hang, and the last 2 consecutive fiscal year continuously profitable.　　The third is to consider the requirements of prevention and control of risk, the provision of "asset risk classification accuracy, and non-performing loan rate of less than 2%;　　Four is to consider the requirements of supporting agriculture and serving local, stipulates that "assets should be based on loans, the last 4 quarters at the end of the total balance of loans accounted for in principle no less than 75%, and all the loans in the county area" and "the last 4 quarters at the end of the total loan balance accounted for the proportion of all loans is not less than 60%". Five is to consider the liquidity risk and the value of the asset impairment risk requirements, stipulates that "the balance of bonded assets should not exceed the total assets of 10%". At present, most microfinance companies can not meet the development requirements in the management thinking, at the same time, the result of the reform is to cede the control or total equity of the micro-loan company, which may become the main reason for the majority of microfinance companies to abandon the transformation.　　It's really hard to change a small loan company into a village bank. Risk control needs to be improved. Survival in high risk is a real problem for microfinance companies. The main loans for microfinance companies are SMEs or "three rural" projects that do not meet the collateral conditions of financial institutions or are not lent to financial institutions.　If the system rules out, to a single customer in excess of lending, or loans focused on a certain industry, a small number of enterprises, the formation of risk concentration, which is currently a number of companies generally reflect the problem, the risk of a relatively light, relatively shallow, once large area appears, will affect the survival and development of the entire company.　(the author is the governor of PBC Yangquan Center Branch)