How hard is it for private capital to enter the financial sector?

Despite the deep pockets of Ali Financial founder Ma Yun has repeatedly said, will not compete with the banks, just "Shing", banks do not want to do by them, but Ali Finance in the financial services sector has formed loans, guarantees, insurance, credit cards, payment and settlement of the whole process, in addition to deposit, functions and banks similar.

Private capital in the end how much want to enter the financial sector, from the Arrey financial body can be seen. June 19, the State Council executive meeting on the news, will encourage private capital to participate in the restructuring of financial institutions, to explore the establishment of private capital launched by the risk of privately owned banks, this statement immediately stimulated the investment enthusiasm of private capital big guy.

June 28 Lujiazui Forum, will also be "how to promote private capital into the financial sector" and research. Economists involved in the discussions have called for the liberalisation of private capital into the banking sector to address the erosion of the huge shadow banking system and to guide private capital to support the real economy rather than usury.

Repeated breakthroughs without fruit

Both the 2005 Non-public 36, or the new 36 in 2010, have encouraged the financial sector to open to private capital, but the difficulties in the dark.

In 2000, Shanghai long first applied to the Shanghai branch of the People's Bank of China for the establishment of a Chinese remittance bank, which rejected the application of the company for a long time because of the written reasons for the competition of Shanghai Bank, and at the end of June 2004, the four shareholders of the Sino-Swiss Consortium The JHF private Bank, which was launched by divine Power Group and Guo Guang Investment Co., has not received the approval of the regulatory authorities, and the Economist Xu Xianqing has set up the Great Wall Institute of Finance, trying to promote the design of five private banks, and has not been approved.

"The introduction of more competition can reduce interest rates in the economy as a whole, and more importantly, the emergence of small and medium-sized private banks will take better care of Chinese SMEs." Ligang, chief economist of ANZ Greater China, said in an interview with our correspondent.

June 28, Fifangvic, vice dean of the China Finance Research Institute of Bank of Communications, said to our correspondent private capital entered the banking industry, as early as 20 years ago, has been a precedent, but the bank was set up at that time is still very small, but only local banks, such as Zhejiang's Tai Lung Bank, thick State Bank, Changshu, Jiangsu, and other agricultural firms, What the industry wants to see now is that the state can open up a wholly-owned bank with private capital, not just equity.

Small loan companies and village banks are typical examples of policy access restrictions.

"Under the previous policy system, private entrepreneurs like Mr Ma have a hard time trying to run a bank," he said. In the past few years, the small loan company in the country everywhere, has reached thousands of of many, small loan companies can be controlled by private enterprises, but by the small loan company upgraded to village and township banks, people will lose control rights. According to the CBRC regulations, Village bank launched the bank's shareholding ratio limit of 15%, such as Zhejiang Ruian Huafeng small loan company want to transform, Wenzhou government has also wanted to use this to establish a model effect, but in the sponsors, controlling power, supervision of the system ceiling, such as long-term breakthrough, the company intends to set up a professional financial company via Hong "Wenzhou Financial Office, a person in charge also to the reporter said.

Policy liberalisation still cautious

The policy has signaled, but it cannot be done immediately.

Earlier, Yixianrong, a researcher at the Institute of Finance at the Academy of Social Sciences, said that the recent calls for banking openness to private capital were increasing, and the government's first concern was why private capital should enter the banking sector.

"Can say, as long as the bank's interest rate is not marketable, so long as the government carries on the price control and the credit scale control to the bank, no matter what kind of capital enters the banking industry, it is unable to form the effective market mechanism, the banking competition can only be the credit scale competition rather than the risk pricing competition, the The most fundamental problem for private capital to break through the monopoly of the state-owned capital to the banking industry is that the recent domestic investment market has undergone great changes, both in the stock market and in the real estate markets. In the private capital, there are only a few serious monopoly industries in the industry with high profit and low risk. "Yixianrong analysis said.

Yixianrong also suggested that private capital to enter the banking industry should be cautious, because the biggest problem is that modern banks are the pricing of the risk of deposit and loan, and this pricing must have a long-term evolution of credit to guarantee, if private capital does not have such credit, then private capital into the banking credit will have to be guaranteed by the Government. Even for domestic banks with very strict management and clear operating procedures, the theft of bank assets by bank workers has also occurred. If private capital is allowed into the banking sector, it is easy for private bankers to steal the depositors ' assets and be done in a short time. When this happens, depositors will face huge risks in the assets of private banks.

In Lujiazui forum, whether bankers or economists, it is generally believed that on the basis of the current liberalization of private capital to launch the establishment of township banks and small and medium-sized banks, private capital is a sound way to enter the banking sector.

Fifangvic was interviewed, said, should choose those after several years market test, do a standard small loan company, guarantee company, upgraded to private banks, so from the examination and approval of relatively easy, the risk is relatively small, rather than flat pull up a few private enterprises to form a bank.

"Another way is to push local governments out of local banks, transforming local banks into real private banks is difficult, and local governments will not easily let go of the financial resources they hold, especially as many local banks scramble to sell their stakes to private capital, Without a fairly good premium, no local government would be willing to. Wang Qing, president of Shanghai Chongyang Investment Management Co., said frankly.

Sample of the People's Bank

Private capital holding banks, will inevitably increase the overall risk of banking?

The Zhejiang Tyrone Bank, which was restructured from 1993, in its shareholders, the identity is all exclusively private enterprises and natural persons, in addition to Zhejiang Business Bank, Taizhou Commercial Bank, thick State Bank, private capital of the forefront of the most advanced areas, not eyeful is usury and "run passers-by", these banks, although operating areas only in Jiangsu, Zhejiang and Shanghai, But regardless of loan ratio, operating profit, bad rate control indicators, are obviously ahead of the large and medium banks.

"Now, even China Merchants Bank, Minsheng Bank and other joint-stock commercial banks, and even four state-owned commercial banks, have begun to consciously learn from the business model of these banks, as long as the system is complete, private capital not only will not increase risk, but also become an important supplement to the existing banking system. "Shanghai Shanshan Chong Hui Venture Chairman Gangyi Analysis pointed out."

Fifangvic also said that the relaxation of private capital to enter the banking industry, there are three important prerequisites, the first is the interest rate marketization, which is the key to liberalize banking access, if the interest rate level is artificially intervened, then the supply and demand of funds will be distorted, and then affect the banking market access decisions, at this time Nothing but the wrong price signals, to attract inappropriate institutions into the market, in the short term may help to improve the efficiency of the allocation of funds, but in the long run, but buried deep risks.

"The second is to establish a regulatory system to adapt to small and medium-sized banks, small and medium-sized banks, especially the private banks that have just entered in the form of civil capital, are inconsistent with traditional banks in their living environment and business model, and need to establish a regulatory system that conforms to their own characteristics." In addition, it is necessary to improve the exit mechanism, only in time to clean up the mismanagement of banks, to ensure the healthy development of the banking sector, and improve the exit mechanism, is to truly open up the important premise of banking access. "Fee Square area said.