The Yingshan model of the reorganization of the rural credit cooperatives: A feast for the public capital

Hubei Daily News reporter Dong Shujian correspondent Jingzhongwen Yang Qilin core tip: Yingshan County Rural credit cooperatives was founded in 1952, is a heavy burden, insufficient capital, poor management of the mountain "Land Bank", known as "Basterds." A year, as one of the 11 pilot cooperatives that set up the rural cooperative Bank in the province, Yingshan has dissolved a lot of bad debts, perfected the corporate governance institution, transformed the management mechanism, and explored a new way to solve the bottleneck of capital, and realized the local government, the rural credit cooperatives and the farmers. A major step in the direction of modern financial institutions.　　This experience was praised as "Yingshan mode" by provincial credit cooperatives.　　Restructuring Let Mountain Bank Shine 28th, is the newly formed Yingshan Rural Cooperative Bank set up the day. President Romoping told reporters that as the first Agricultural bank in East Hubei, the restructuring has made the Mountain Bank shine: By the end of November this year, Yingshan's savings balance of 1.699 billion yuan, up from the same period last year 100%, in the county financial institutions in the "three parts of the world have one"; late September this year, The cumulative loan of 1.467 billion yuan, is the sum of the first 3 years, achieve net profit of 10.81 million yuan, increase 98%, tax revenue 2.06 million yuan, increase 66%.　　According to estimates, the future annual tax will be 2 million yuan increase, the number of accounts to 322,000 households, doubled.　　Yingshan County Rural Credit Cooperatives was established in 1952, under the jurisdiction of 23 outlets, 268 employees, is the most local network of financial institutions. Before the reform, the Yingshan rural credit cooperatives are confronted with many deep-seated problems. First, the property right reform is not in place, the corporate governance structure has not been established, not in line with the development trend of modern financial enterprises. The second is the heavy burden of history, the proportion of bad debt, by the end of 2009, non-performing loan balance of 105 million yuan, non-performing loan rate of 15.54%, loan loss preparation adequacy rate is only 12.2%, the gap of 71.13 million yuan. Third, the ability to resist risk is not strong, internal control and performance evaluation system behind.　　Four is the social image is poor, is mistaken for many people is the financial institution "Basterds", the business development is subjected to many restrictions.　　If these problems cannot be solved as soon as possible, the rural credit cooperatives will not be able to develop healthily and sustainably.　　April 2009, our province rural credit cooperatives to form a village cooperation Bank Curtain opened, Yingshan rural credit cooperatives by the provincial government identified as the province's first batch of 11 pilot units.　　Land shares to replace non-performing assets, to resolve the bad debt of the reform of the rural credit cooperatives is to resolve the bad debt, improve the loan loss reserve adequacy ratio.　　Yingshan is a financially poor county, local finance can not be pulled out of tens of millions of yuan of cash, to the Union for decades accumulated non-performing debt "pay".　　To support the reform of the rural credit cooperatives, the county party committee and county government have made a decision to take the "land for debt" approach to solve the problem of bad debts. November 2009, the county government took out the hot spring Industrial Park under construction 100 acres of land to replace the rural credit cooperatives non-performing loans of 24 million yuan; the land is owned by the rural credit agency and the Land BureauCommon disposal, disposal of cash 30 million yuan to the Agricultural bank, more than part of the county government all; After the replacement of non-performing loans, the state and the relevant departments to increase the strength of the governor, the recovery of loans to the district finance. December 18 last year, the use of land use permits to replace non-performing loans in place.　　Through this program, the county government with tomorrow's money to do today's things, one by one to dissolve the rural credit cooperatives 24 million yuan non-performing loans, for the formation of agricultural line to remove obstacles.　　Over the past year, through restructuring, the bank's total disposal of non-performing assets 67.53 million yuan, non-performing rate from 15.54% to 4.79%.　　Private capital participation, sharing rural "capital Feast" one of the important factors for the successful establishment of the Yingshan cooperation Bank is the intervention of private investors inside and outside the province.　　The IPO is the key link in the reform of the rural credit cooperatives, and it is also the difficulty of establishing the county-level agricultural line. According to the preparation plan, Yingshan to raise 80 million shares, to make up for the existing funding gap of 24 million yuan, must be issued at a premium of 1:1.3.　　Due to the impact of the global financial crisis, legal persons and natural persons to the financial market investment confidence in the decline, the IPO is facing a greater difficulty, Yingshan County per capita income is low, lack of strength of small and medium-sized enterprises, raising shares of capital encountered difficulties, the recruitment work at one point of deadlock. To this end, Huanggang branch and the Yingshan County government propaganda, in the media to publish the announcement of the initiator, and many times to Wuhan, Guangdong, Shanghai and other place to seek strategic investors, has introduced Hubei Changan Building, Zhuhai, the United States and new materials, Hubei fat mining, Hubei Hongyuan investment, such as 4 companies to share 32 million shares. On the other hand, 3,000 public offerings were issued to mobilize the community. To December 25, 2009, 80 million of all funds collected in place, including 32 million shares of corporate, social natural persons 32 million shares, internal staff shares 16 million shares.　　Effective resolution of non-performing assets of 24 million yuan.　　The IPO not only solves the problem of the equity in the formation of the Agricultural Bank, but also optimizes the corporate governance structure and lays the foundation for the establishment of modern financial enterprises. Adhere to the main "three rural", to the characteristics of industry as a breakthrough in the formation of agricultural line of the barriers to almost all cleaning.　　Where is the agricultural and road after the establishment?　　The board's answer was emphatic: not only does the mission of "three farmers" not change, but also to a step! After the transformation of the rural credit cooperatives into agricultural banks, the capital increased significantly; before the reform, more than 1 million yuan of loans to the city Union to approve. After the reform, 12 million yuan can be approved within the county, the increase in the approval power to improve the efficiency greatly;　　This year to October, the rural credit cooperatives issued agricultural loans 750 million yuan, a net increase of 260 million yuan, agricultural loan balance of 750 million yuan, a net increase of 210 million yuan, its agricultural loans accounted for the county's financial institutions total agricultural loans to the proportion reached 92%. In the service mode, innovative tea business loans, the construction of "Green Bank." From the point of view of serving local development of agricultural pillar industry and characteristic industry, agricultural lineInnovative "tea business households loans", the single farmers the highest credit limit of 300,000 yuan.　　By the end of October, the cumulative distribution of tea loans 75.86 million yuan, supporting the local Top ten organic tea base, hundred refined tea factory, thousands of sales outlets, million kinds of tea large. In view of the rural reality, the Agricultural Bank has introduced the peasant household small credit loan and the peasant household loan and so on new product, effectively solved the peasant loan mortgage, the guarantee difficult question. This year has accumulated for 48632 farmers to provide microfinance 603 million yuan, farmers ' loans from the original 8.1 per thousand to reduce to 7.5 per thousand, only this one, the monthly profit of 420,000 Yuan. Really become "the banks around the farmers."