Opinions of the State Council on Promoting the Accelerated Development of the Financing Guarantee Industry

 2018-08-27  162


· Document Number:No. 43 [2015] of the State Council

· Area of Law: Foreign Economy and Trade

· Level of Authority: Regulatory Documents of the State Council

· Date issued:08-07-2015

· Effective Date:08-07-2015

· Issuing Authority: State Council

· Status: Effective

 

Opinions of the State Council on Promoting the Accelerated Development of the Financing Guarantee Industry
(No. 43 [2015] of the State Council)
The people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government; all ministries and commissions of the State Council; and all institutions directly under the State Council:
Financing guarantee is an important means and crucial link for resolving the problem of financing difficulty and high financing cost of micro and small enterprises and “agriculture, rural areas, and farmers,” and plays an important role in stabilizing growth, adjusting the structure and benefiting the people. For purposes of actively satisfying the requirements for the reform and transformation of the financing guarantee industry, promoting the accelerated industry development, and better serving overall economic and social development, the following opinions are hereby offered.
I. General Requirements
(1) Guiding thoughts. The spirit of the 18th National Congress of the Communist Party of China, and the Second, Third and Fourth Plenary Session of the 18th CPC Central Committee shall be implemented in a comprehensive manner, the decisions and arrangements of the CPC Central Committee and the State Council shall be diligently implemented, easing financing difficulty and high financing cost of micro and small enterprises and “agriculture, rural areas, and farmers” shall be taken as the orientation, vigorous development of financing guarantee and re-guarantee institutions supported by governments shall be taken as the basis, and pertinent increase of policy support for the financing guarantee industry shall be taken as the foothold, so as to accelerate the development of the new-type financing guarantee industry mainly serving micro and small enterprises and “agriculture, rural areas, and farmers,” and promote entrepreneurship and innovation by the people.
(2) Basic principles. First, integrating policy support and market guidance. For the financing guarantee business that serves micro and small enterprises, “agriculture, rural areas, and farmers” and other inclusive fields, and relating to overall economic and social development, its nature as quasi public goods shall be respected, and governments shall provide vigorous support; and the active and innovative development of other financing guarantee businesses is encouraged according to the market discipline, and the decisive role of the market in the allocation of resources shall be played. Second, attaching equal importance to the promotion of development and regulation. Legal construction in the industry shall be accelerated, scientific supervision shall be promoted, the regulatory compliance operations of financing guarantee institutions shall be promoted, and development space shall be left when the bottom line of risks is firmly guarded; the development orientation shall be adhered to, development shall be promoted by regulation, and standard operation and innovative development shall be balanced appropriately.
(3) Development objectives. Financing guarantee institutions shall be boosted to “reduce quantity and enhance quality,” enhance their specialized and overall capability, cultivate a batch of strong and influential financing guarantee institutions, and basically form an institutional system with a reasonable amount, rational structure, orderly competition and stable operation; the basic full coverage of provincial re-guarantee institutions shall be realized within three years, and research shall be conducted to establish the national financing guarantee fund, improve the mode of cooperation between banks and guarantee institutions, and establish and improve the financing guarantee business risk diversification mechanism; the financing guarantee business for micro and small enterprises and “agriculture, rural areas, and farmers” shall have a relatively rapid growth, the financing guarantee fee rates shall maintain at a relatively low level, and the number of households that purchase financing guarantee for micro and small enterprises and “agriculture, rural areas, and farmers” shall reach the objective of not less than 60% within five years; the Regulation on the Administration of Financing Guarantee Companies and its supporting detailed rules shall be issued, so as to basically form a regulatory system commensurate with industry features; policy support shall be increased continuously, so as to form the policy support system with the financing guarantee business for micro and small enterprises and “agriculture, rural areas, and farmers” as the orientation.
II. Playing the role of government support and enhancing the service capability of financing guarantee institutions
(4) Vigorously developing financing guarantee institutions supported by governments. Focusing on the development of financing guarantee institutions at the provincial and prefecture or city level, scientific layout shall be made, and by such means as new formation and holding controlling shares and non-controlling shares, a batch of government financing guarantee institutions which are mainly funded by governments and have prominent principal businesses, standard business operations, relatively strong strength, relatively good reputation and relatively large influences shall be developed as the principal force for serving micro and small enterprises and “agriculture, rural areas, and farmers,” so as to support industry development; competitive financing guarantee institutions that mainly serve micro and small enterprises and “agriculture, rural areas, and farmers” shall be supported to conduct mergers, acquisitions and restructuring, play the advantages of capital, talents, risk management, business experiences, brand and other aspects, and enhance their specialized and overall capability, so as to lead industry development. The development of the financing guarantee business for micro and small enterprises and “agriculture, rural areas, and farmers” shall be taken as the criteria, and more support shall be given to financing guarantee institutions' expansion of business scale.
(5) Strengthening the capacity building of financing guarantee institutions. Financing guarantee institutions, as the foundation and key for industry development, shall strengthen their capacity building, and according to the internal requirements of credit intermediary institutions, effectively maintain their credit standing, manage risks, perform responsibilities, enhance strength and reputation, and conduct intensive risk management. They shall adhere to the development of their principal financing guarantee business, develop inclusive finance, adapt to the development trend of new financial businesses such as Internet finance, make bold innovation and active exploration, provide rich products and good services for micro and small enterprises and “agriculture, rural areas, and farmers,” promote entrepreneurship and innovation by the public; play the advantages of “linking to the actual circumstances” and the role of “amplifier,” provide value-added services to clients, enhance client value, and form unique core competitiveness.
III. Playing the leading role of governments, and promoting the construction of the re-guarantee system
(6) Accelerating the development of re-guarantee institutions. Research shall be conducted to establish the national financing guarantee fund, promote the basic full coverage of provincial re-guarantee institutions led by governments, build the three-tier organization system covering the national financing guarantee fund, provincial re-guarantee institutions and financing guarantee institutions within their respective jurisdictions, effectively disperse the risks of financing guarantee institutions, and play the role of re-guarantee institutions as the “stabilizer”.
(7) Improving the re-guarantee mechanism. The guiding role of government policies shall be played, research shall be conducted to demonstrate the support provided by the national financing guarantee fund to the development of provincial re-guarantee institutions by equity investment, technical support and other methods. The people's governments of all provinces (autonomous regions and municipalities) shall, under the principles of government guidance, professional management and market operation, promote provincial re-guarantee institutions' construction of a uniform financing guarantee system linked by equity investment and the re-guarantee business; improve the re-guarantee mechanism, and enhance the management level and risk resistance capability of financing guarantee institutions within their respective jurisdictions, unify management requirements and service standards, and expand the scale of the financing guarantee business for micro and small enterprises and “agriculture, rural areas, and farmers”.
(8) Improving the assessment mechanism for government financing guarantee and provincial re-guarantee institutions. For government financing guarantee institutions, local people's governments at all levels shall, in light of the actual requirements for reducing or canceling profits in their local areas, mainly examine the scale and services for the financing guarantee business for micro and small enterprises and “agriculture, rural areas, and farmers.” Provincial re-guarantee institutions shall adhere to the principle of break-even and low-profit business operations not for the purpose of making profits, and under the premise of sustainable business operations, endeavor to reduce the charging standards for financing guarantee and re-guarantee businesses.
IV. Joint participation by the three parties of governments, banks and guarantee institutions to build the sustainable business mode of cooperation between banks and guarantee institutions
(9) Establishing the cooperation mode of joint participation by the three parties of governments, banks and guarantee institutions. The people's governments of all provinces (autonomous regions and municipalities) shall play their role, increase investment, actively explore the mechanism of cooperation among governments, banks and guarantee institutions commensurate with the actual circumstances of their regions, encourage the establishment of government guarantee funds in the regions where conditions are met, and realize the rational assumption of risks of financing guarantee for micro and small enterprises and “agriculture, rural areas, and farmers” among governments, banking financial institutions and financing guarantee institutions. The cooperation with banking financial institutions with provincial re-guarantee institutions as the platform shall be promoted, rational compensation shall be made for the risks of guarantee loans of banking financial institutions, and the establishment of a business mode of cooperation between banks and guarantee institutions shall be promoted.
(10) Improving the policies on cooperation between banks and guarantee institutions. Banking financial institutions shall, based on policy orientation and under the principles of sustainable business operations and controllable risks, actively link with each other, simplify formalities, and actively expand and further cooperation between banks and guarantee institutions; and under the framework of cooperation with provincial re-guarantee institutions, provide preferential conditions such as risk allocation, charging no or less margin, raising amplification factor and controlling the upward floating range of loan interest rate to cooperating financing guarantee institutions; improve performance assessment and risk accountability mechanisms, and enhance the tolerance to risks of financing guarantee loans for micro and small enterprises and “agriculture, rural areas, and farmers.” The risk weight may be lowered appropriately for financing guarantee loans for micro and small enterprises and “agriculture, rural areas, and farmers” of which banking financial institutions do not assume risks or only assume partial risks.
(11) Optimizing the environment for cooperation between banks and guarantee institutions. The China Financing Guarantee Association and the China Banking Association shall, under the guidance of the relevant departments, accelerate the work on credit records of financing guarantee institutions; and banking financial institutions and re-guarantee institutions shall, based on credit records, conduct differential management of cooperating financing guarantee institutions, so as to enhance risk control; banking financial institutions, re-guarantee institutions and financing guarantee institutions shall make full use of the enterprise credit information publication system to promote the robust development of cooperation between banks and guarantee institutions.
V. Effectively performing supervision functions to guard the bottom line of risks
(12) Accelerating legal construction for supervision. The Inter-ministerial Joint Meeting of Financing Guarantee Business Supervision shall strengthen system building, promote the issuance of the Regulation on the Administration of Financing Guarantee Companies as soon as possible, and improve the system of financing guarantee supervision laws and regulations; enhance supervision guidance and force, and effectively maintain the uniformity and authority of regulatory laws, regulations and policies, so as to ensure the insistence of abiding by all laws, strictly enforcing laws and investigating violations of laws; strengthen industry infrastructure construction, establish a uniform industry information submission and monitoring system, and strengthen the monitoring and early warning of risks in major regions and fields; evaluate the performance of functions by regulatory authorities, and direct local people's governments to handle risk incidents in a timely and appropriate manner; and establish a dynamic inter-departmental punishment mechanism for financing guarantee institutions that commit dishonest and illegal conduct.
(13) Clarifying local supervision responsibilities. The people's governments of all provinces (autonomous regions and municipalities), as the subjects performing supervision responsibilities, shall attach importance to the supervision work, strengthen the allocation of human, material, financial and other regulatory resources; effectively handle the relationship between development and supervision, and attach equal importance to development and supervision. Local regulatory authorities shall innovate on supervision mechanisms and means, actively explore and conduct categorized supervision, promote regulatory information construction, and strengthen the information inter-connection and sharing and supervision cooperation among departments, so as to enhance the effectiveness of supervision. They shall report in a timely manner and appropriately handle major financing guarantee risk incidents within their respective jurisdictions and firmly guard the bottom line of no occurrence of regional and systemic risks.
(14) Strengthening industry self-discipline and talent construction. The China Financing Guarantee Association shall strengthen industry self-discipline construction, actively assume some industry management functions, and play an important role in such aspects as industry statistics, management of institutions' credit records, cultivation of industry talents and cultural construction, and provide effective supplements to industry supervision; make scientific and rational strategic planning on talent cultivation, reserves and use, conduct research to formulate employee management rules, improve employees' quality, and promote team building.
VI. Strengthening cooperation to jointly support the development of the financing guarantee industry
(15) Implementing fiscal and taxation support policies. The business tax exemption and pre-tax reserve deduction and other relevant policies for financing guarantee institutions shall be implemented in an effective manner. Capital investment, compensation and other methods shall be comprehensively utilized to increase fiscal support to financing guarantee institutions that mainly serve micro and small enterprises and “agriculture, rural areas, and farmers”.
(16) Creating a sound environment to support development. Further research shall be conducted to improve the relevant accounting standards for enterprises, so as to guarantee the quality of accounting information in the financing guarantee industry; the credit records of financing guarantee institutions shall be improved and included in the national uniform credit information sharing and exchange platform; financing guarantee institutions shall be connected to the basic financial credit information database in a standard and orderly manner, so as to strengthen credit management; mortgage (pledge) registration shall be conducted for financing guarantee institutions in accordance with the law, and necessary assistance shall be provided for their claim protection and compensation, so as to protect the lawful rights and interests of financing guarantee institutions. The people's governments of all provinces (autonomous regions and municipalities) shall continue to review and regulate non-financing guarantee companies, strengthen administration, and establish a long-term effect mechanism.
All regions and all relevant departments shall fully comprehend the great significance of promoting the accelerated development of the financing guarantee industry, and strengthen coordination, so as to form a resultant force. All relevant departments shall, according to the requirements of these Opinions and the division of their functions, waste no time in formulating the relevant supporting measures, so as to ensure the effective implementation of all policies and measures. The people's governments of all provinces (autonomous regions and municipalities) shall make specific plans for promoting the development of the financing guarantee industry in their regions and organize the implementation of the plans as soon as possible.
State Council
August 7, 2015