Small Business Ushered In Credit Spring?

After the Premier Wen's research speech and the CBRC's unified arrangement, ICBC took the lead in expressing its credit to small businesses. Other banks have also studied their own situation. Mr Wen Jiabao said in his research in Guangdong last Sunday that the banking system has begun to tilt from credit to SMEs and increase financial support.

In July 22nd, the reporter learned that Jiang Jianqing, chairman of the ICBC, said at the working conference of the branch president of the whole bank that in the second half of the year, ICBC will tilt its credit to small businesses, and actively explore ways of supporting small businesses' reasonable funds through multi-channel support, such as securitisation of small enterprises, small businesses, bonds and other innovative ways.

According to statistics, the contribution rate of about 6000 small and medium-sized enterprises to GDP has reached 60%, providing about 75% of employment opportunities and creating about 50% of export revenue and fiscal revenue.

Due to tighter monetary policy this year, a large number of small and medium-sized enterprises' capital chain is seriously tight, and many small and medium-sized enterprises have gone bankrupt.

People in the industry believe that ICBC's position in the business work conference can be seen as a positive response to the Central Committee's efforts to increase credit for SMEs.

In July 19th, Liu Mingkang, chairman of the China Banking Regulatory Commission, called on all financial institutions to "pay close attention to the credit of small businesses and to support qualified small businesses to tide over difficulties" at a meeting.

In order to implement the tight monetary policy, we need to actively ensure the capital needs of the key areas. Small businesses are the foundation for the stable development of the economy and the strategic area of ICBC's competitive development. We should keep healthy development of small business credit business in the continuous adjustment and optimization of the structure.

Jiang Jianqing explained the new focus adjustment at the July 22nd meeting.

Jiang Jianqing's position is very specific.

Reporters learned that, influenced by the deterioration of export environment and other domestic and international factors, the situation of enterprises in the coastal areas such as the Yangtze River Delta and the Pearl River Delta has made ICBC's initiatives particularly timely.

According to the statistics released by Guangzhou Statistical Bureau in July 22nd, nearly 30% of the industrial enterprises in Guangzhou have suffered losses due to the increasing scissors gap in the production price index.

The deficit of deficit companies was 5 billion 156 million yuan, an increase of 1.4 times.

According to the reporter, Jiang Jianqing asked the ICBC to treat all small businesses with dynamic analysis and market segmentation.

The small enterprises with strong innovation ability, competitive products and healthy management continue to give strong support. Small enterprises with good market prospects and present temporary financial difficulties are supported by various ways, such as loan restructuring and extension, and the small enterprises with low cost advantages and no environmental protection standards are resolutely quit.

The meeting did not mention whether the increase in the deposit reserve ratio had eroded the profits of banks. The ICBC explained that in order to correctly understand the relationship between macroeconomic regulation and banking management, the two sides do not conflict and the interests are the same. The implementation of macro-control policies is conducive to promoting the adjustment of Bank credit structure and industrial structure and enterprise structure, thereby enhancing the sustainable development of banks and enterprises.

In the past, the people's Daily reporter Tian Junrong and Ouyang Jie found that the increase in the deposit reserve ratio has eroded bank profits in Jiangsu and Zhejiang.

In response, Wu Xiaoling, former vice president of the central bank, said that the interest rate paid to commercial banks by the central bank has already been able to make up for the bank's eroded profits.

At the same time, commercial banks should also have a sense of social responsibility.

According to reporters, the bank also held a mid year working conference in July 22nd.

However, SMEs have never been an important business area of Bank of China, so Bank of China did not give special instructions to SMEs.

The CCB and the Agricultural Bank of China, which regard small and medium-sized enterprises as important customers, will have a few days to work.

At that time, the two banks' lending plans for SMEs in the second half of the year will be clear.

To support the financing of small businesses, the reporter understands that the difficulties faced by SMEs are directly related to the business orientation of major banks.

The CBRC survey found that under the tight monetary policy environment, some banks' "big insurance and small pressure" trend is more obvious, and the difficulty of small business financing is significantly increased.

The survival predicament of small and medium-sized enterprises began to attract the attention of the CBRC officials.

On July 19th, Liu Mingkang, chairman of the China Banking Regulatory Commission, said at the 2008 annual meeting of the CBRC that the second half of the year should pay close attention to the credit of small businesses, and guide the banking financial institutions to find out the situation of small businesses' risk and credit situation, innovate the mechanism, and strive to support qualified small businesses to tide over difficulties, and try to arrange the credit scale of small businesses individually, no less than the average annual credit growth rate, and give priority to satisfying the reasonable credit demand of small businesses that meet the requirements in the post disaster reconstruction area.

At the same time, local governments have begun to pay attention to the financing of SMEs.

The reporter learned from the staff of the Shanghai banking regulatory bureau that the regulatory authorities have been concerned about the credit situation of small businesses, requiring banks to ensure that the credit scale of small businesses is not controlled.

The people pointed out that some banks took corresponding measures to calculate the scale of small business loans and ensure the increment.

Such as ICBC Shanghai branch, the index of small business loan assessment is issued separately, mainly including loan increment index and new account opening index. At the same time, the national standard small and medium-sized enterprise logo is set up in the credit management system, and a separate subject is set up for the commodity financing business of small enterprises, so as to facilitate the checking of loan varieties.

Some banks also adopt special incentives to encourage the development of small business credit.

For example, the Shanghai branch of CCB has incorporated the business development of small businesses into the KPI assessment index of the whole bank, assessed the senior management level quarterly, and implemented the special performance appraisal and reward and punishment mechanism for the small business customer managers. The personal interests of the small business credit officers, such as the income level and rank promotion, are directly linked to their performance.