Research On The Innovation Of "Credit+Insurance" Mortgage Financing Mode Of Biological Assets

The problem of "difficult and expensive financing" for farmers and agricultural management subjects has always been the focus of rural financial development.The lack of collateral with sufficient value and compliance is the primary factor that has not been effectively alleviated.There has been preliminary practice in expanding the scope of collateral to the field of biological assets.In 2019,the People’s Bank of China and other four ministries jointly issued the Guiding Opinions on Financial Services for Rural Revitalization,which made it clear that the scope of pledges for agricultural and rural areas should be actively expanded,and the mortgage credit business of live livestock and poultry should be promoted,further diversifying the types of biological assets that can be pledged.In our country,the mortgage financing of biological assets is still in the pilot stage,and a variety of mortgage financing models of biological assets have been developed.The traditional "credit+ insurance" mortgage financing model of biological assets is widely used,but the mortgage financing model still has some disadvantages,such as high premium rate,difficult valuation of mortgage property,difficult supervision of mortgage property,difficult to fight epidemic disease of mortgage property,etc.It has hindered the smooth financing channels of farmers and agricultural management subjects,and it is urgent for banks and other financial institutions to actively innovate the traditional "credit + insurance" mortgage financing mode of biological assets.This paper selects the innovation of biological asset mortgage financing model of "credit+ policy insurance + commercial insurance" of Chongqing Bank A for research,and systematically studies the innovative mortgage financing model based on relevant research progress and theoretical basis.A brief introduction is made to Chongqing Bank A to understand its ability to carry out mortgage financing of biological assets,and the design of this innovative mortgage financing model is deeply explored.A detailed analysis of the motivation of Chongqing Bank A’s innovation,the existing financing dilemma,how to solve the dilemma and the financing effect of the innovation model;Summarize the corresponding conclusions,draw the corresponding enlightenment,and put forward the relevant suggestions.The results show that Bank A of Chongqing innovatively launched the "credit + policy insurance + commercial insurance" live pig mortgage financing mode mainly motivated by four aspects: pig breeding enterprises have urgent financing needs,pig breeding enterprises are short of sufficient collateral,mortgage financing policy environment is improving,and the insurance market foundation of Chongqing is further consolidated.However,in the process of innovating the mortgage financing model of live pig biological assets,it faces the financing dilemma of fluctuating live pig value,difficult supervision,easy to be interfered by epidemic disease and low insurance rate.It innovatively adopts big data and dynamic adjustment of mortgage rate to alleviate valuation difficulties,reduces regulatory risks by "artificial intelligence + manual verification",and avoids the impact of epidemic disease by "dual insurance"."Banking,government and insurance" linkage and comprehensive risk control.Finally,Bank A of Chongqing took advantage of this innovative mortgage financing mode to take the lead in the industry again and successfully issued the first live pig mortgage loan in Chongqing,which produced multiple financing effects: The ownership of the mortgage assets is clarified,the mortgage rate of the mortgage assets is increased,the borrowing cost of the borrower is compressed,the financing prescription is improved,and the credit risks such as mortgage guarantee risk,moral hazard and default risk are reduced,so as to meet the financing needs of B pig breeding enterprise with high efficiency and low cost.Through the analysis of the successful operation mechanism of the live pig mortgage financing mode of "credit + policy insurance + commercial insurance" innovatively launched by Chongqing Bank A,the following four inspirations are drawn:(1)Accelerate the highquality development of policy insurance;(2)Strengthen big data and AI infrastructure;(3)Improve policies,laws and regulations related to mortgage financing of biological assets;(4)Strengthen cooperation in the field of mortgage financing of biological assets.In order to promote the development of mortgage financing of biological assets in more areas of our country in order to meet the practical financing needs of farmers and agricultural management subjects,four suggestions are given as follows:(1)Continue to promote the good development of agricultural insurance;(2)Promote the innovation vitality of financial institutions;(3)Deepening cross-border cooperation to serve rural finance;(4)Improve the supporting facilities related to mortgage financing of biological assets.