April 21, China Banking Regulatory Commission, the Ministry of Science, the People's Bank of China jointly issued "on the banking financial institutions to increase support for innovation carried Kechuang corporate investment and loans linked pilot guidance" (hereinafter referred to as "guidance"), in some banks industry, financial institutions and some national independent innovation demonstration zone to carry out the first pilot joint investment and loans.
Pilot areas include: Beijing Zhongguancun National Innovation Demonstration Zone, Wuhan East Lake National Innovation Demonstration Zone, Shanghai Zhangjiang National Innovation Demonstration Zone, Tianjin Binhai National Innovation Demonstration Zone and Xi'an National Innovation Demonstration Zone; and the pilot banking institutions including: the national development Bank, China Bank, Prudential Bank, Bank of Beijing, Bank of Tianjin, Shanghai Bank, Hankou Bank, Xi'an Bank, Shanghai Pudong development Bank and Shanghai Huarui Silicon Valley Bank.
Break a small step
According to China's current "Commercial Bank Law" Article 43, commercial banks in the territory of People's Republic of China shall not engage in trust investment and securities business, not to the non-occupied real property or non-bank financial institutions and enterprises, but other countries provisions are excluded.
The pilot joint investment and loans was a breakthrough. In order to carry out joint investment and loans, "guidance" function allows the pilot banks to set up subsidiaries and the establishment of science and technology investment banking franchise organizations. Function has been set up with investment in subsidiaries, carried out by a subsidiary of investment and loans linked equity investments in the territory. Pilot agencies have not established a subsidiary of the investment function, upon application and approval according to law, to allow the establishment of a subsidiary with investment functionality.
CBRC responsible person on the "First Financial Daily" that the experience of this pilot is to find and try to do the first step, but for existing commercial banking law has been a breakthrough, so in the delineation of the scope very carefully.
"Guidance" requires, first, to establish a "firewall." In carrying out joint business investment and loans, the pilot institutional investment capabilities of its own funds to the subsidiary should Kechuang enterprises equity investment, debt funds may not be used, agency funds, fiduciary funds and any other form of non-owned funds; functional sub-investment companies to invest a single branch ventures ratio does not exceed 10% of the investment function of the subsidiary's own funds.
At the same time, the pilot banks for joint investment and loans Equity Branch ventures and other investments should be isolated; investment banking subsidiary function should be introduced with the parent bank institutions isolation, financial isolation. When Banks Branch enterprises credit loan sources should be in the form of funds, may not use financial funds, funds of funds entrusted to non tables, agency funds.
Secondly, in carrying out joint investment and loans, the pilot agencies should set reasonable Kechuang business loan risk tolerance, should determine non-performing loans between banks and their subsidiaries investment function, government loan risk compensation fund, security companies, insurance companies sharing mechanism and the compensation ratio of principal, so that the rate of non-performing loans within established risk tolerance range.
Third, establish risk tolerance and risk-sharing mechanisms. In carrying out joint investment and loans, the pilot agencies should set reasonable Kechuang business loan risk tolerance, should determine its investment banking subsidiary function, government loan risk compensation fund, security companies, non-performing loans among the principal insurer sharing mechanism and the compensation ratio so that the NPL ratio within established risk tolerance range.
Fourth, establish a business exit mechanism. Pilot agencies should strengthen investment and loans linked business risk monitoring and evaluation, with its own risk appetite, investment and loans is determined trigger conditions and mechanisms for joint business pilot withdraw, develop exit the program.
How to stand out
"From the financial institution selected is easy to see, each type of financial institutions, the CBRC selected only one, since the City firm in the country no branches, according to the pilot areas selected. After the first batch of pilot investment and loans of financial institutions linkage effects, the CBRC will monitor the site and off-site monitoring, adjustment and summarizes the experience of looking. "CBRC official said.
According to the "guidance", China Development Bank, China Bank, Prudential Bank, National Investment Bank loans may carry out joint pilot demonstration area in the five branches set up in accordance with their circumstances. Shanghai Pudong Development Bank Silicon Valley can pilot within existing institutions and business scope. The remaining banks with a pilot mechanism in the national independent innovation demonstration zone.
The official pointed out, the first bank to participate in the pilot process is actually a two-way choice.According to the work processes and daily supervision of the banking, financial institutions, the CBRC internal conditions such principled conditions. While participating in the pilot or not also conform to commercial banks willingness to participate. Although some banks to meet the requirements, but is willing to wait for some time. Finalize the 10 banks.
What Kechuang enterprise selection criteria? Five pilot areas selected and how? MOST responsible person pointed out that Nationwide, there is no uniform standard for Kechuang enterprise, it is difficult to develop similar standards. Currently various regions of Section ventures set that standard, depending on the circumstances of each region Kechuang enterprises will establish Kechuang enterprise resource pool project, to financial institutions related to investment business locally.
For selected pilot areas, he noted that so far, the State Council approved the National Innovation Demonstration Zone total of 14, from which we preferred as the five pilot joint investment and loans, mainly in the hope of financial institutions in relatively good condition expand the pilot area. Selected for three reasons: first, comply with the national "first try first" strategic thinking; secondly, innovation demonstration area of innovation and entrepreneurship are resource gathering place. Third, within the above area, "line 3 will" and the Ministry of Science, according to a year-round basis and to promote the experience of science and finance.