Innovation Research Of Credit-granting Mode For Small And Micro Enterprises In Zhejiang Banking Industry

Currently,some new phenomena have emerged concerning the problem of difficult and expensive financing which is generally concerned by small and micro enterprises.Its core is the letter of credit for commercial banks,which is restricted by outmoded rules and regulations and relies too much on the verification of the repayment ability of small and micro enterprises.In this mode,a large proportion of corporate repayment funds come from private lending,so financing costs are high.Therefore,the banking sector to encourage commercial banks to carry out Small and micro businesses credit innovation by way of letter from 2009,to guide the exploration of new method in the loan turnover link;since 2014 has increased efforts to promote.Owing to innovation involves a number of areas,including legal risk issues,IT system support issues,and risk management technical issues,influenced by the traditional concepts and operational inertia of commercial banks,the innovation of the mode of letter of credit for domestic commercial banks faces many difficulties.Under the promotion of the Banking Regulatory Commission of Zhejiang Province,Zhejiang banking industry first effectively improved Loan risk management of small and micro enterprise in recent years,so that the traditional credit-granting mode of small and micro enterprises got a new breakthrough.In order to summarize the successful experience of Zhejiang banking industry and provide alternative templates for other parts of the country.By focusing on the institutional design and practice model of renewal innovation of Zhejiang banking industry,this paper analyzes the useful practices of domestic foreign-funded banks,combs five pre-set entry thresholds of Zhejiang banking industry to carry out innovation,sums up six modes of commercial bank loan innovation in “Zhejiang edition”,and provides successful cases of Shaoxing and Wenzhou.This article finds out that it is not without precedent to break the old tradition of commercial banks' “repayment before making loans” in the world.For example,the international banking industry has a form of loan called “rollover loan”,which is used by long-term clients with good credit.During the period of credit-granting,the loan may be recycled under the maximum amount of credit authorized by the bank.After the maturity of the loan,enterprises that have passed the annual inspection can continue to make loans,rather than pay off the repayment before making loans.Some foreign banks,such as HSBC,adopt the mode of "opening newaccounts while closing old accounts" to achieve seamless docking.Inspired by the advanced concepts and models of the international banking industry,Zhejiang banking industry has carried out a series of innovative designs: The first is to implement the list system management and strictly control the access to enterprises,thereby preventing innovative credit-granting mode form covering up the true credit risk.The second is to adjust the module manually and carry out strict access to the system in order to prevent innovative loans from directly “misreading” by the system as bad loans and affecting the enterprise credit record.The third is to lock the use of loans and ensure the authenticity of enterprise information,thereby preventing the bank from obtaining distorted cash flow.The fourth is to limit the factor process and strictly control the enterprise credit risk in order to prevent the weakening of lending elements such as guarantee means,which are brought about by innovation.The fifth is to avoid the loss of creditor's rights and strictly control the legal risks of innovation.For example,it is stipulated that the enterprise must notify the guarantor in time before the new contract is signed,and require the guarantor to issue a statement of its understanding that the loan will be used to repay the maturity loan.After defining the service object,Zhejiang banking industry adopted six kinds of innovation models,such as “Fund Allocation Method”,“Quota Cycle Method”,“Deadline Revision Method”,“Emergency Postponement Method”,“Sectional Combination Method” and “Quota Pool Turnover Method”,which played an important role in solving the problem of small and micro enterprise customers' cash flow difficulties.Through the analysis of the concrete practice of the renewal of Zhejiang banking industry,this paper finds the practical significance of the financial innovation: First,it is helpful to reduce the cost of enterprise financing;second,it is conducive to regulate the private lending practices of capital intermediary;third,it is beneficial to improve the fine level of bank credit management.Moreover,this paper also assesses the effectiveness of the renewal innovation in Zhejiang banking industry.According to the assessment,with the help of the regulatory guidance,under the generally optimistic situation of Zhejiang banking industry strengthened in terms of small and micro enterprises' renewal services,there are many problems,including institutional categories vary widely,characteristics of districts and cities are obvious,the renewal service efficiency of some institutions is low,the handling time of individual account manager is too long,etc.Meanwhile,he regulatory constraints and actual risks faced by the renewal innovation,including the existing regulatory regulations are laggingbehind,the legal risks are difficult to avoid,the inherent risk attributes of small and micro enterprises have brought uncertainty to the continuous and healthy promotion of this financial innovation.Based on the above research and discovery,this paper finally puts forward some suggestions for further innovation,including strengthening the supervision and coordination mechanism by means of improving supervision laws and regulations,establishing a due diligence system on credit-granting through perfecting examination mechanism,enhancing the credit-granting risk control ability of commercial banks to small and micro enterprises,improving financial infrastructure construction,etc.The research of this paper is based on the supervision practice of Zhejiang Banking Regulatory Bureau and the bold innovation of Zhejiang banking industry.In addition,in recent years,the author participated in the promotion of the financial services of small and micro enterprises in Zhejiang banking industry,and took part in the theoretical research,innovative design and application promotion of credit-granting mode of small and micro enterprises,thereby having the opportunity to come into contact with a lot of phased research results.Undoubtedly,the collective wisdom has played an important and positive impact on the formation of this paper.