Case Study Of Beijing Bank's Investment And Credit Linkage

"Difficult financing,expensive financing" is not only a problem that small micro-enterprises are facing,but also a problem that technology companies in the start-up and growth period are facing."Volkswagen entrepreneurship,Massive innovation" has become a new engine of China's economic development.As how could commercial banks help small enterprises and technology companies to broaden the financing channels,reduce financing costs,and deal with financial integrated business and cross-border competition,to study the structural reform of financial supply side has become an urgent issue.In this context,investment and loan linkage is considered a new era of economic incubator.In 2015,the State Council proposed the selection of eligible commercial banks to explore the linkage model of pilot lending and lending.And the CBRC said that it is now promoting the linkage mechanism of commercial banks."Government Work Report"(2016)once again stressed that the pilot will gradually explore the linkage model of investment and lending,to reduce the credit costs of SMEs,and bank credit risk in the reasonable control.At present,the trend of diversification and equitisation of financing is becoming more and more obvious.The traditional mode of indirect financing of banks has been difficult to meet the financing needs of enterprises.How to realize the "win-win" of commercial banks and small micro enterprises by optimizing and upgrading the business model has reached a consensus in most commercial banks.And the linkage of both creditor's rights and equity attributes has become the focus of business innovation.The essence of the linkage of investment and credit is to make up for credit losses by the investment income,which can solve the structural contradictions of the high risk of corporate innovation and low-yield of bank loans.Due to the regulatory restrictions on the investment of non-financial institutions and enterprises by commercial banks,China's investment and loan linkage is still in its infancy.Non-pilot commercial banks make equity investment by other venture capital,however,as the State Council conducts equity investment business with commercial banks pilot work gradually,commercial banks have a certain business authority to carry out the corresponding work,which is both an opportunity and a challenge for commercial banks.Commercial banks have adopted different modes of operation for the linkage of investment and loan management,and risk management is still the key to the joint venture business.Based on the analysis of the concept of the linkage of investment and loan,the literature review and the present situation of the country,this paper takes the investment and loan linkage business of Bank of Beijing as an example,makes a deep analysis of the Bank of Beijing in the operation of the business process of investment to find out the problems and risks,and finally come to the case revelation and advice,in order to promote the smooth development of China's commercial banks to invest in this business.The conclusion of this paper is that commercial banks need to further improve the linkage mechanism of investment loans,and also need to pay attention to effectively prevent and control risks.From the banking level,the lack of equity investment experience banks need to establish long-term risk management mechanism;From a macro perspective,China needs to continue to promote multi-level Capital market construction,to lend a solid foundation for commercial banks to carry out investment and loan linkage.