Local Banks Extend A Helping Hand To Wenzhou Shoe Companies.

As one of the beneficiaries of the 605 million yuan refinancing and rediscount fund of the people's Bank of Wenzhou, Han Jiyong, general manager of Wenzhou git Leather Co., Ltd. signed a contract with Wenzhou bank.

Wenzhou people's Bank pointed out that increased refinancing and rediscount funds need to be strictly targeted.

Any whereabouts of funds need to be reported.

Funds must be linked to the real economy.

In October 27th, the people's Bank of Wenzhou held the "Central Bank branch of the people's Bank of Wenzhou" in the 8 floor conference room.

Han Jiyong's company can be said to be a high contribution Bank of Wenzhou bank. Apart from the company's financing and lending, the bank acceptance business of 300 thousand to 800 thousand yuan per month, Han Jiyong's personal consumption and utilities are settled in Wenzhou bank.

That is why banks become the source of Han Jiyong's sense of security.

For Wenzhou's local financial institutions, it plays a more important role in restoring market confidence.

The amount of credit granted by Wenzhou branch of five state-owned banks and other foreign city commercial banks to Wenzhou SMEs is determined by their respective bank headquarters.

By comparison, local financial institutions in Wenzhou are more direct in accessing capital.

The president of the Wenzhou people's Bank of China has not been very polite in signing the meeting.

"In the third quarter, the increase in deposit and loan in Wenzhou has been seriously declining. Increasing credit does not mean anything. Even if you increase one hundred million and hundreds of millions of credit, how about this money? Don't let the bank become the last straw to crush the enterprise!" {page_break}

Prior to Wenzhou's long run investment failure, business owners such as Xintai group have become a reference case in the short term.

"All those who invest outside, do not give any real estate investment!" Wu Guo Lian has repeatedly stressed this point; secondly, the credit is good, and the small and micro enterprises that have close cooperation with banks for less than 5 million yuan become the first choice of these funds.

Han Jiyong and his solid leather became the representative enterprises of this loan.

Without collateral, he tied up with two other companies and signed a loan agreement with Wenzhou bank for mutual protection.

"Now the market situation has affected every real enterprise entity, and I still want to work hard for several years.

In these difficult times, we dare not want to invest. "

Han Jiyong said with a lingering fear.

The launch of the Wenzhou people's Bank and the provision of funds not only play a guiding role, but also show a voice to the Wenzhou market, and enterprises can get support if they want to do business in a down-to-earth way.

What the Wenzhou market needs at present is not how much money is invested. Instead, it needs to restore the confidence of the enterprises that are still operating in the market.

Foreign banks can enter selectively.

At this time, Wenzhou hopes that banks will join the ranks of "rescue" enterprises.

In September 28th, the Wenzhou municipal Party committee and the municipal government issued the opinions on stabilizing and standardizing financial order and promoting economic pformation and development.

According to the opinion, banking institutions should implement preferential interest rate policies according to the different credit rating of enterprises, and loan interest rates should not exceed 30%.

At the same time, a loan enterprise must not be forced to purchase financial products, and shall not be linked to the deposit of the enterprise.

We should encourage and support banking institutions to carry out financial innovation, actively explore ways to guarantee loans and credit, and broaden the scope of pledge.

In response to these requirements of the local government, Xiao Suining, chairman of Shenzhen development board, accepted the interview with the China business newspaper. He explicitly stated: "the government has the request of the government, and our bank has the regulations of the bank.

We will not lend loans to enterprises regardless of risks. "

Xiao Suining pointed out that the concept of "bailout" does not belong to banks. The owners of "run" businesses in Jiangsu and Zhejiang are often involved in unfamiliar industries, such as real estate, futures and even gambling. "They have problems and are not worthy of sympathy. They can not divide their views from the left to the right. They want to treat differently. The market is so chosen."

Xiao Suining said: "the market is fair and cruel. It is impossible for banks to save those enterprises.

Banks are also enterprises. They should be accountable to investors and depositors. "

Xiao believes that small and medium enterprises that encounter difficulties are basically traditional industries.

"In fact, they have had difficulties in 2008, which have already indicated that these enterprises must adjust and upgrade their industries. However, at that time, because of the liquidity of 40000 billion yuan, these enterprises were doing well, so many enterprises did not take the initiative to pform and upgrade, continue to produce low-end products, and continue to maintain low labor efficiency, so that fewer and fewer market opportunities.

As the macro environment tightens, they become very difficult. "

In an interview with our reporter, Kim fan, director of the office of Wenzhou branch of Pudong Development Bank, also said that banks support those enterprises that are short of internal capital chains rather than those facing a vicious circle.

Moreover, banks should continue to adhere to the provisions of guaranty and mortgage in the process of examination and approval.

Previously, Xintai group, one of the most concerned escaping companies, is a customer of Pudong Development Branch in Wenzhou. The Xintai group is currently being led by the government to restructure.

The value of collateral of Xintai group in Shanghai Pudong development is far higher than its loan quota. It is precisely because most of the enterprises in Pudong development loan financing need collateral and guarantee that Pudong hair is mostly skin injury, and it is not hurt.

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Strict supervision of capital flows

In the wake of financial institutions' bailouts, the CBRC issued a regulatory plan to monitor bank lending and private lending, which explicitly stated that "strict enforcement of new lending regulations to ensure credit capital flows into the real economy" requires banks to strengthen the risk investigation of credit capital flows and to terminate contracts for loans appropriated to private lending.

Yan Haimei, deputy director of the office of the Wenzhou banking regulatory bureau, also told reporters: "the risk supervision of the banking regulatory bureau should play a supporting role in financial institutions. Enterprises need to treat them in a classified way. It depends on the reasons for the failure of enterprises. If the operation is normal, there is a problem in the chain of funds, so we must support it.

On the contrary, if the enterprise itself has debts, and it is not a state supported enterprise, it is not in the rescue list, and can not be packaged and treated together.

Wenzhou Banking Regulatory Bureau expressly requested that the banking financial institutions within the jurisdiction should regularly report the credit and risk situation of enterprises and their guarantee enterprises, affiliated enterprises and secured enterprises.

For different enterprises, it is necessary to carry out classified guidance, and continue to give credit support to those enterprises whose fundamentals are better, credit records are good, have market, and have orders, but are temporarily unsecured or unpaid because of the involvement of guaranty or financial difficulties. Enterprises that have difficulties in repayment in the short term, but are eligible for loan restructuring, support enterprises to implement loan restructuring, while helping enterprises to defuse their own risks; for those who are not expected to revive, they will maintain bonds in time, guarantee assets and prevent bonds from hanging up.

It can be seen that all parties are "rescuing the market" from the government of Wenzhou, the Central Bank of Wenzhou, the banking regulatory bureau and the financial institutions themselves, but this "city" is not a generalization and no choice.

Wenzhou banking industry insiders told reporters that Wenzhou's SME turmoil is not only a unique phenomenon of a place.

The development of everything has its rationality. The financing problem of SMEs has always existed. These are the fundamental reasons for the high risk of private usury.

Financial institutions play the role of lubricants and boosters, and more need for enterprise pformation and improvement of market mechanism.