Guarantee business includes direct guarantee and re-guarantee, in which direct guarantee includes financing guarantee and non-financing guarantee. 0030 10 financing guarantee refers to the behavior of the guarantor to provide guarantee for debt financing such as borrowing and issuing bonds. According to the guarantee object, it can be divided into loan guarantee, bond issuance guarantee and other financing guarantee. Non-financing guarantee mainly includes litigation preservation guarantee and performance guarantee.
Re-guarantee refers to the guarantee established for the guarantor. Its basic operation mode is that the original guarantor transfers part of the guarantee risk responsibility to the re-guarantor at the expense of paying the re-guarantee fee. Re-guarantee includes proportional re-guarantee and general joint liability re-guarantee.
Figure classification of guarantee business
Guarantee companies can be divided into general financing guarantee companies, credit enhancement companies and re-guarantee companies according to their main business and positioning.
(1) financing guarantee company
Refers to a legally established limited liability company or joint stock limited company engaged in financing guarantee business. Among its financing guarantee businesses, those that serve small and micro enterprises, agriculture, rural areas and farmers are quasi-public goods, and other financing guarantee businesses follow market rules.
(2) Credit Promotion Company
It provides professional credit enhancement services in the form of guarantee, credit derivatives and structured financial products. Credit enhancement targets include bonds, loans and structured financial products. Enhance the overlap of some businesses of credit companies and general financing guarantee companies, such as bond issuance guarantee business and credit protection tool business. In order to realize the full coverage of financing guarantee business supervision, the Regulation on Supervision and Management of Financing Guarantee Companies was promulgated in June 20 19, and credit enhancement companies that actually operate financing guarantee business without a financing guarantee business license were included in the supervision of financing guarantee business.
(3) Re-guarantee company
Generally, it is a policy financial institution funded by the central or provincial finance to provide risk-taking and credit enhancement services for policy financing guarantee business. Since 20 15, in order to speed up the development of financing guarantee industry and solve the financing difficulties of small and micro enterprises and agriculture, rural areas and farmers, the state has vigorously promoted the construction of re-guarantee system. As a part of the three-tier organization system formed by the national financing guarantee fund, the provincial re-guarantee institutions and the financing guarantee institutions under their jurisdiction, the re-guarantee company undertakes more policy functions.
In fact, guarantee companies that meet certain conditions can run other businesses concurrently, and many existing guarantee companies also carry out financing guarantee, non-financing guarantee and re-guarantee business at the same time.
Classification and comparison of table guarantee companies
By the end of 2020, the balance of financing guarantee in China was 718.249 billion, up by 2 1.74% year-on-year. Among them, the balance of financing guarantee liability of the top ten guarantee institutions accounts for 765,438+0.765,438+0%, which is 7.65,438+0 percentage points lower than that of 2065,438+09, but the concentration is still high.
Figure Balance of Guarantee Liabilities of Top Several Guarantee Institutions by the End of 2020 (%)
The guarantee industry mainly includes guarantee institutions, guaranteed enterprises and fund suppliers. Among them, the guarantee institution is the most important market subject and guarantee business provider in the guarantee industry. At present, China's guarantee institutions can be divided into three categories according to their nature, namely, policy guarantee institutions, mutual guarantee institutions and commercial guarantee institutions. The guaranteed enterprise is generally the demand side of the guarantee market and the demand side of the guarantee business; Fund providers include banks, non-bank financial institutions and enterprises.
Panorama of picture guarantee industry chain
The operation of guarantee companies is based on the theory of risk dispersion. Guarantee companies play an intermediary role in spreading risks in the financing process. On the one hand, creditors such as banks, investors in the bond market and buyers of financing products require debtors to pass on some risks they cannot afford to financing guarantee institutions by providing financing guarantees. If the bond defaults, the guarantee company needs compensation, which improves the security of financing funds; On the other hand, the debtor can obtain a guarantee from the guarantee institution by paying a certain fee, which can smoothly reduce the financing cost and ensure the smooth progress of financing activities. Under the guarantee system, the guarantor guarantees and charges based on his own judgment and understanding of the debtor's enterprise credit and counter-guarantee measures, and the creditor invests based on the recognition of the authority and compensation ability of the guarantee institution, thus forming a better closed loop of financing activities.
Because the guarantee company has the characteristics similar to insurance and banking in business, the guarantor's compensation risk caused by the debtor's default is the most important risk faced by the guarantee company. Once the salary event happens, it may lead to a large outflow of cash, which will affect the company's finance and performance. Therefore, when undertaking the guarantee business, the guarantee company not only applies the principle of risk dispersion, but also provides guarantees for many financing entities with different industries, different volumes and different properties, which can reduce the default risk through decentralization and establish adequate counter-guarantee measures and risk control measures.
In the business process, when underwriting, the guarantee company will first screen customers by fully evaluating the debtor's repayment ability and willingness. There is no clear national unified standard for determining the rate, which is decided by the guarantor and the guarantor through independent consultation, but it needs to be reported to the price department at the same level for approval. In 2006, "Guo Fa Ban No.90 Document" issued by China once stipulated that the rate of guarantee companies could fluctuate by 30-50% on the basis of the bank loan interest rate of 50% in the same period. At present, public information shows that the rate of Shanghai policy guarantee institutions is 1-2%, and that of commercial guarantee institutions is 2-4%. The risk countermeasures after guarantee mainly include counter-guarantee and reserve withdrawal. When providing guarantee, the company will use counter-guarantee measures such as mortgage, pledge and guarantee to increase the default cost of customers and enhance the coverage of credit risk losses. A certain amount can be realized and recovered after compensatory breach of contract, and the full withdrawal of risk reserve is also equivalent to the buffer when the risk occurs. When the payout ratio (compensation amount/guarantee balance) is lower than the reserve coverage ratio (risk reserve/guarantee balance), the company will
Figure operation mode of financing guarantee business
At present, the guarantee industry uses digital technologies such as blockchain, big data, cloud computing and Internet of Things. Improve the problem of information asymmetry, so as to enhance customer acquisition ability, optimize business processes, reduce business costs and improve risk control ability. However, from the perspective of the whole industry, the digital transformation has just begun, and more institutions are only in the stage of accepting electronic applications. In the middle and late stage, only a few institutions can do business access, risk identification, online credit granting, insurance monitoring and post-insurance management. Digital transformation still has a long way to go.
Blockchain technology solves the burden
Credit problem of insurance industry
Digital technologies such as blockchain have played a very important role in helping the digital transformation of guarantee industry institutions. At present, the information between the market and customers is asymmetric, the information of cooperative institutions such as banks is separated from each other, and the information of competent departments of various industries cannot be shared, which makes the risk of financing guarantee business rise sharply, the payout ratio and loss rate increase continuously, and the sustainable development ability is limited. It is urgent to find a breakthrough from the operation mode and technical support. Based on its unique advantages, blockchain can theoretically provide various support for financing guarantee credit enhancement.
Blockchain has the technical characteristics of distributed storage, non-tampering, collective maintenance and traceability. And built a unique trust mechanism, which has been widely used in the field of digital economy. For the guarantee industry, it can bring new development opportunities for guarantee institutions in risk identification, risk control, project management and business innovation. And bring a new model of pure credit guarantee to guarantee institutions. The trust establishment mechanism is to achieve multi-party cross-validation through decentralization. In the blockchain system, all information is linked in chronological order, and each block points to the previous block, forming a chain that can be traced back to the first block. Therefore, the information exchange activities on nodes can be queried and tracked, thus solving the credit problem of the guarantee industry and making every transaction on each block searchable, traceable and unchangeable.
Electronic letter of guarantee-a typical case of digital transformation of guarantee industry institutions
In the past, in the trading activities of public resources, enterprises had to pay cash bid bond to participate in bidding, and enterprises applying for project bidding had to go to the site to handle business, but this on-site mode brought severe challenges to epidemic prevention and control. Therefore, the General Office of the National Development and Reform Commission issued the Notice on Actively Responding to the Epidemic and Innovating the Bidding Work to Ensure the Stable Operation of the Economy (Development and Reform Office Letter [2020] 170), which proposed to speed up the electronic bidding process, promote the use of letters of guarantee, especially electronic letters of guarantee, to replace cash deposits, and realize online submission and online verification.
Electronic letter of guarantee is a legally effective electronic guarantee certificate issued by banks, insurance companies, guarantee companies and other financial institutions to the beneficiaries through computer networks based on electronic documents at the request of the insured. In the electronic guarantee platform of bid bond of public resource trading center, qualified guarantee industry institutions can apply for docking. As the last mile of the whole bidding process, electronic guarantee has huge market capacity and broad prospects.
As an important part of China's financial system, the financing guarantee industry shoulders important responsibilities such as stabilizing the financial system, promoting inclusive finance and dispersing financial risks. Therefore, it is inseparable from the guidance of policies and the support of the state finance, especially the guarantee chaos after 20 12, which requires the close supervision of state institutions.
Therefore, China has established a relatively perfect supervision system. After the supervision of the central bank, multiple supervision and provincial government, the current financing guarantee industry adopts the joint meeting system. In the central government, the CBRC takes the lead, and the ministries and commissions such as the Ministry of Finance, the National Development and Reform Commission, the Central Bank and the Ministry of Commerce participate in the management. At the local level, the principle of "whoever approves the establishment is responsible for supervision" is followed, which is specifically implemented by local financial departments, financial offices and SME bureaus. In terms of policies, ministries and commissions have also introduced various policies at different historical stages to give appropriate guidance.
After more than 20 years of exploration, the supervision system of China's guarantee industry is becoming more and more perfect. Under the guidance of clear policies, guarantee institutions will also recognize their own positioning and actively participate in supporting small enterprises and supporting agriculture.
Government regulations
People's Republic of China (PRC) Securities Law
1995, issued by the National People's Congress Standing Committee (NPCSC), specifies the ways, conditions and responsibilities of financing guarantee, and regulates the subject of guarantee.
Measures for financing management of small and medium-sized enterprises
1998 is issued by the central bank, which stipulates that loan enterprises must obtain loans from banks through third-party guarantees without sufficient collateral.
Guiding opinions on strengthening and improving financial services for small enterprises
1999 was issued by the central bank, emphasizing increasing the inclination to small and medium-sized enterprises and improving the guarantee system. The procedures for secured loans for small and medium-sized enterprises can be appropriately simplified, and the loan interest rate cannot rise.
Guiding opinions on establishing a pilot credit guarantee system for small and medium-sized enterprises
1999 was issued by the state economic and trade commission, emphasizing that the guarantee institutions are not for profit, and the funds mainly come from government budget assistance and asset allocation. The guarantee system is divided into national, provincial and municipal levels, with guarantee and re-guarantee, and the guarantee fee is controlled within 50% of the bank loan interest rate.
Some policy opinions on encouraging and promoting the development of small and medium-sized enterprises
In 2008, the State Economic and Trade Commission issued, emphasizing the government's capital investment in credit guarantee, and the guarantee and re-guarantee institutions included in the national pilot scope were exempted from business tax for three years. Accelerate the construction of guarantee system, improve the access system of guarantee institutions, explore the establishment of national re-guarantee institutions, and promote the development of mutual guarantee and commercial guarantee between enterprises; Emphasize the separation of government from enterprise and market-oriented operation.
Notice on further clarifying the regulatory responsibilities of financing guarantee business
It was issued by the State Council in 2009, and determined the competent department of the guarantee industry. Led by the former CBRC, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Commerce, the People's Bank of China, the State Administration for Industry and Commerce and the Legislative Affairs Office of the State Council jointly established an inter-business joint meeting on financing guarantee.
Interim Measures for the Administration of Financing Guarantee Companies (namely Order No.3 of 20 10)
20 10 was jointly issued by China Banking Regulatory Commission, National Development and Reform Commission, Ministry of Commerce and Central Bank. It is clear that the balance of financing guarantee liability provided by a financing guarantee company to a single guarantor shall not exceed 10% of its net assets, the balance of financing guarantee liability provided to a single guarantor and its related parties shall not exceed 15% of its net assets, and the bonds issued to a single guarantor shall not exceed 30% of its net assets.
Interim Measures for the Administration of Credit Guarantee Funds for Small and Medium-sized Enterprises
20 10 jointly issued by the Ministry of Finance and the Ministry of Industry and Information Technology, it is clear that the credit guarantee fund for small and medium-sized enterprises will be arranged by the central budget, with a maximum of 30 million. By adopting three ways: business subsidy, premium subsidy and capital investment, the system conditions for applying for guarantee funds and the supervision and management methods for funds are clarified.
Opinions on promoting the standardized development of financing guarantee industry
20 1 1 was jointly issued by CBRC, NDRC and other ministries and commissions. Based on the Interim Measures for the Administration of Financing Guarantee Companies, coordinate the supporting financing guarantee laws and regulations system.
Notice on cleaning up and standardizing non-financing guarantee companies
20 14 was jointly issued by the China Banking Regulatory Commission, the National Development and Reform Commission and other ministries and commissions, which brought non-financing guarantee companies into the scope of supervision and rectified the mixed operation and illegal operation of non-financing guarantee companies.
Opinions on Accelerating the Development of Financing Guarantee Industry (Order No.43)
20 15 the State Council issued, guiding the financing guarantee institutions to return to supporting agriculture, pointing out that the government should play a supporting role and improve the ability of financing guarantee institutions to serve small, micro, agriculture and rural areas. Give play to the leading role of the government and promote the construction of the re-guarantee system; Government, banks and banks participate in establishing a sustainable business cooperation model.
Regulations on the Supervision and Administration of Financing Guarantee Companies (Guo DecreeNo. 1. 683rd)
The State Council issued on 20 17, clarifying the quasi-public product nature of the guarantee industry, supporting the development of inclusive finance, promoting financial intermediation, stipulating the supervision mechanism and responsibility of the central and local governments for the industry, establishing the risk sharing mechanism of governments at all levels, and refining the detailed rules of industry access, operation, supervision and legal responsibility.
Four Supporting Systems of Regulations on Supervision and Management of Financing Guarantee Companies
20 18 was jointly issued by seven ministries and commissions: China Banking Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Finance, Ministry of Agriculture and Rural Affairs, Central Bank and State Supervision Bureau. The four supporting rules clearly guide business license, measurement method of guarantee liability balance, classification weight calculation, risk control index, classification and asset ratio at all levels, basic principles and business norms of bank-bond cooperation.
Guiding opinions on giving full play to the role of government financing guarantee fund and effectively supporting the development of small and micro enterprises and agriculture, countryside and farmers
The State Council was issued on 20 19, emphasizing on supporting small enterprises to support agriculture, effectively reducing the comprehensive financing costs of small and micro enterprises and "agriculture, rural areas and farmers", building a cooperation mechanism in which government financing guarantee institutions and banking financial institutions jointly participate and share risks reasonably, strengthening cooperation and resource docking, and optimizing the supervision and assessment mechanism.
Notice on Issuing the Supplementary Provisions on the Supervision and Administration of Financing Guarantee Companies
Credit enhancement companies issued by CBRC on 20 19 and engaged in bond issuance guarantee and guarantee business are managed by the bond market management department as a whole. At the same time, it shall, in accordance with the provisions of the "Regulations", apply to the territorial supervision and management department for the business license of financing guarantee business, and accept its supervision over related businesses.
Guidelines for industry performance evaluation of government financing guarantee and re-guarantee institutions
The Ministry of Finance issued in 2020, which clarified the definition of government guarantee institutions and implemented a list system for guarantee institutions. In addition, increase policy support and appropriately relax the assessment of profitability and the preservation and appreciation of state-owned capital.
Notice on several issues concerning strengthening the financial management and policy support of local finance for credit guarantee institutions of small and medium-sized enterprises
The Ministry of Finance issued 202 1 to standardize the financial behavior of SME credit guarantee institutions, strengthen financial supervision of SME credit guarantee institutions by financial departments at all levels, control guarantee risks and increase policy support for guarantee institutions.
Industry self-regulation convention
China financing guarantee industry self-discipline convention
20 13, 13 In June, the Ministry of Civil Affairs officially approved the establishment of "China Financing Guarantee Association", and "industry self-discipline" as the responsibility of the association was clearly written into the articles of association of China Financing Guarantee Association.
Hunan province financing guarantee industry self-discipline convention
In July, 2020, this Convention was formulated in order to standardize the industry behavior, maintain the market order, promote the healthy development of the financing guarantee industry in Hunan Province, and protect the legitimate rights and interests of guarantee customers, employees and financing guarantee institutions.
Hubei province financing guarantee industry self-discipline convention
In August, 20021,this Convention was formulated in accordance with the Regulations on Supervision and Administration of Financing Guarantee Companies in Hubei Province and the Articles of Association in order to promote the construction of credit culture, maintain the image of the industry, establish an effective self-discipline mechanism, ensure orderly competition and friendly cooperation in the financing guarantee industry, and promote the standardized development of the financing guarantee industry.
Figure industry comprehensive financial indicators
Historical valuation of graphic industry
Valuation methods can include price-earnings ratio valuation method, PEG valuation method, price-to-book ratio valuation method, price-to-book ratio valuation method, P/S price-to-book ratio valuation method, EV/ sales price-to-book ratio valuation method, RNAV revaluation net assets valuation method, EV/EBITDA valuation method, DDM valuation method, DCF discounted cash flow method valuation method, NAV net assets valuation method, etc.
Figure Main listed companies
Chart index market performance
Historical evaluation of graph index
The main components of insurance in the picture
Main components of Tu Junxin's guarantee
(1) Macroeconomic fluctuation risk
Macroeconomic fluctuations may have an impact on financing demand, lending ability and willingness of lending institutions, and repayment ability of borrowers. , and lead to the adjustment of relevant economic policies, and then have an impact on the company's operating environment and operating results.
(2) Regulatory policy risks
In the future, if the regulatory policies such as the guarantee industry change, the company needs to adjust and fully adapt to these changes in time, which may lead to major changes in the company's business direction, field or mode or restrictions on some businesses.
(3) Credit risk
The guarantor compensation risk caused by the guarantor's breach of contract is the most important and direct risk faced by the guarantee industry.
(4) Liquidity risk
Risks arising from the company's failure to meet the capital requirements arising from various due guarantee liabilities or to raise the required funds in time at reasonable cost.
(5) Market risk
Risks brought by market price fluctuations of the company's investment portfolio and collateral. With the expansion of the company's investment assets, it mainly faces market risks brought by interest rate and price fluctuations.
(6) Operational risk
Risk of loss due to imperfect or ineffective implementation of business processes, internal control mechanisms, decision-making procedures and employee management.
In the past two years, due to the slowdown of macroeconomic growth, the operating conditions of small and medium-sized enterprises have deteriorated, and the growth rate of insurance balance in the guarantee industry has slowed down significantly. It is generally believed that the scale of guarantee business is positively related to the scale of social financing, and the growth rate of social financing scale stock determines the speed of guarantee scale expansion to a certain extent. However, since 20 19, the rising speed of guarantee stocks began to pick up. By the end of 2020, the stock of social financing scale was 284.83 trillion yuan, a year-on-year increase of 13.3%. From 20 17 to 2020 12, the guarantee balance of financial products of financial guarantee institutions showed a continuous growth trend. As of 2020 12, the balance of guarantee liability of financial guarantee institutions is 7182.49 million yuan.
Figure 20 15-2020 Stock trend of social financing scale in China (unit: trillion yuan,%)
Due to the release of the downward pressure on the macro-economy and the adjustment of the business structure of guarantee institutions last year, the growth rate of compensation scale in the whole industry has slowed down. By the end of June, 2020, there were five financial guarantee institutions, including Jiangsu Credit Re-guarantee Group Co., Ltd., Anhui Credit Guarantee Group Co., Ltd. and Shenzhen High-tech Investment Group Co., Ltd. By the end of June, 2020, the growth rates were 1 1.3 1% and1respectively.
Figure 20 15-2020 Guarantee balance of wealth management products of financial guarantee institutions (unit: 100 million yuan,%)
Judging from the scale of compensation, the guarantee companies with larger compensation scale are Anhui Credit Guarantee Group Co., Ltd. and Zhonghe SME Financing Guarantee Co., Ltd., and the compensation receivable is 654.38+27.3 million yuan and 654.38+29.9 million yuan respectively. The business attribute of Anhui Credit Guarantee Group Co., Ltd. is partial to policy, supporting small and micro enterprises and "agriculture, rural areas and farmers", and the scale of compensation is relatively high under the background of macroeconomic downturn; The high compensation of Zhonghe SME Financing Guarantee Co., Ltd. is mainly due to the increase in the compensation scale of industrial debt guarantee customers. In the future, under the background of great downward pressure on macro-economy, the compensation pressure of financial guarantee institutions is still great.
Figure 20 19-2020 Compensation Receivable by Financial Guarantee Institutions (Unit: trillion yuan,%)
In China, the policy attribute of financing guarantee companies is obvious. Small and medium-sized enterprises have weak strength, high financial pressure and high default risk, and need external support, so it is difficult to obtain credit loans from banks or issue bonds directly. In recent years, the national level has been vigorously supporting the development of small and medium-sized enterprises, especially to solve the problem of financing difficulties for small and medium-sized enterprises. Therefore, on the one hand, banks are required to increase inclusive finance and support the development of small and medium-sized enterprises; On the other hand, in order to maintain the stability of the financial system and prevent the occurrence of systemic financial risks, the guarantee system is introduced and popularized, emphasizing that guarantee companies should play a policy guarantee function to support small enterprises and agriculture, reduce the profit requirements of financing guarantee industries, promote the reduction of guarantee business fees, and appropriately improve the risk tolerance of small and micro loans for agriculture, rural areas and farmers.
1999, China's "Guiding Opinions on Establishing a Pilot Credit Guarantee System for Small and Medium-sized Enterprises" has established an integrated two-wing guarantee model with policy guarantee as the mainstay, commercial guarantee and mutual guarantee as the supplement. After the rectification of the industry, the number of commercial guarantees has been greatly reduced. At present, there are only Hanhua Financing and Wuhan Credit Guarantee. On the other hand, policy guarantee institutions have the property of quasi-public goods, which bring huge positive externalities to enterprise financing and social development, but bear an appropriate risk level far higher than the corresponding income. The business characteristics of category insurance and the policy attributes of public goods form the characteristics of high risk and low return.
In order to cope with this mismatched risk-return level, on the one hand, the state exempts the pre-tax deduction of business tax and reserves, and compensates the risks borne by financing guarantee institutions through financial subsidies and capital injection; On the other hand, an effective three-level risk sharing mechanism has been established, namely "national guarantee fund, provincial re-guarantee institution and local financing guarantee institution".
Figure Three-level guarantee system in China
In some areas, county-level guarantee institutions are also included in the system: in 20 18, a national financing guarantee fund was established with a registered capital of 661000,000 yuan, which is mainly used to cover provincial-level guarantee institutions and disperse the risks of financing guarantee business at different levels; Provincial guarantee companies connect with the national guarantee fund upwards and cooperate with municipal or district guarantee companies downwards to improve the regional guarantee system: Anhui Guarantee 20 18 successfully connects with the national guarantee fund, becoming the first provincial guarantee company to join the national financing guarantee system; Subsequently, a number of provincial re-guarantee companies joined in one after another. By the end of June, 2020, the state-owned fund re-guarantee business has covered 30 provinces and more than 800 counties and districts, with the business scale exceeding 522190 million yuan, and the number of guarantor households exceeding 313400, and the three-level risk sharing system has been put in place. According to the calculation of relevant personnel, the fund can provide about 500 billion loan guarantees in the next three years.
Table Distribution and characteristics of existing guarantee institutions in China
At present, China's financing guarantee industry is dominated by state-owned guarantee institutions, and policy business and commercial business develop together. Its original intention of serving small and micro enterprises and reducing their financing difficulty has not changed. From 20 17 to 20 19, the proportion of the guarantee balance of financial products in the market share of the top ten financial guarantee institutions was 83.89%, 83.45% and 78.82%, respectively, showing a general downward trend, with a large decline since 20 19; In 2020, the proportion of 65438+February was 7 1.7 1%, which was further decreased compared with the end of 20 19. However, the industry concentration is still high, and the business is concentrated in national financing guarantee institutions and large-scale provincial platform financing guarantee institutions, which will be in the top ten in 20 17-2020.
Figure As of June 5438+February 2020, the proportion of guaranteed liabilities of the top ten financial guarantee institutions (unit:%)
The business development of guarantee institutions tends to be flat.
The business development of guarantee institutions tends to be flat, and most of the newly established guarantee companies are provincial guarantee companies. One of the ways to set up financing guarantee companies or solve the problem of issuing bonds in the region is to strengthen the policy functions of guarantee institutions.
Considering that inclusive finance is advocated by the state at present and will be affected by the epidemic in 2020, the state will actively support small and micro enterprises to fight against the adverse effects caused by the epidemic. In the short term, the scale of indirect financing guarantee business will increase, the growth rate of bond guarantee business will tend to be flat, and the overall balance of guarantee responsibility will increase. Affected by market fluctuations and the magnification of some large guarantee institutions approaching the regulatory requirements, it is expected that the overall industry development will remain stable in the future.
Affected by recent policies and rising external credit risks, the single customer concentration of guarantee companies will further decline, and the industry concentration will maintain the current level. The customer quality of financial product guarantee institutions, which mainly focus on bond guarantee business, will gradually move upwards, and the business of guarantee institutions will further shrink to the registered place and main business place, and the regional concentration will become more significant.
Provincial platform guarantee companies actively build a guarantee system.
On the one hand, provincial guarantee companies actively connect with national financing guarantee funds, cooperate with county-level guarantee companies in the province to establish a three-level guarantee system, and further optimize the guarantee system in the province. The province's guarantee institutions take the lead in actively developing small, micro, rural areas and farmers' guarantee business, effectively solving the financing difficulties of small, micro, rural areas and farmers and promoting high-quality economic development.
On the other hand, in the context of the gradual exposure of the external credit environment, the guarantee institutions engaged in the guarantee business of financial products such as bonds have increased the frequency of risk investigation of existing projects, become more cautious about new projects, and increase the overall operating pressure. Guarantee institutions urgently need to adjust the low-level customer structure, and the business volume may decline to some extent.
On the whole, the overall credit level of guarantee institutions in provinces with strong regional economy remains at a high level under the circumstances of strong policy support in the province and relatively good quality of guaranteed customers.
The risk of enterprise default is still high, and the pressure of financial guarantee institutions to pay compensation is still high.
At present, on the one hand, due to the gradual increase in the scale of guarantee business, although the scale of indirect financing guarantee business will increase, considering that the rate has decreased under the guidance of policies, and at the same time, the supervision has strengthened the requirements for asset classification of guarantee institutions to ensure their liquidity, the scale of entrusted loan business has declined, and the overall profit scale has limited growth.
On the other hand, due to the comprehensive impact of the current macroeconomic downturn and the COVID-19 epidemic, the external credit level has deteriorated and declined. Since 2020, there have been many defaults in financial products such as bonds. 202 1, the risk of default is still increasing. If financing guarantee companies with large centralized default amount are not excluded, the off-balance-sheet write-off of guarantee institutions will be intensified. In the future, with the increase of the term of bond guarantee business, the profits of financial product guarantee institutions will be eroded to some extent. According to public data, the total asset impairment losses of financial product guarantee institutions in 20 19 years increased by 14 1.03% compared with the previous year.
Cover photo taken by Vero Photoart on Unsplash.
Related Q&A: There is no quantitative regulation on how to charge for loans guaranteed by guarantee companies. Here is the charging standard of a guarantee company 1, with a guarantee amount of less than 5 million yuan and an annual guarantee rate of 5%. 2. The guarantee amount is more than 5 million yuan,100000 yuan, and the annual guarantee rate is 4%; 3. The annual guarantee rate is 3% for the part with the guarantee amount exceeding 6,543,800+million; 4. If the guarantee fee charged at the above rate is less than 2,000 yuan, it shall be charged at no less than 2,000 yuan; 5. The guarantee fee shall be paid to the guarantee company in one lump sum by the borrowing enterprise after completing all formalities and before the bank lends money; "General Principles of Civil Law of People's Republic of China (PRC)" Article 387 Where a creditor needs security in order to guarantee the realization of his creditor's rights in civil activities such as borrowing, buying and selling, he may establish a security interest in accordance with the provisions of this Law and other laws. If a third party provides a guarantee for the debtor to the creditor, it may require the debtor to provide a counter-guarantee. The provisions of this law and other laws shall apply to counter-guarantee. Article 394 Where the debtor or a third party mortgages the property to the creditor to guarantee the performance of the debt without transferring the property, and the debtor fails to perform the due debt or realize the mortgage right according to the agreement of the parties, the creditor has the right to be paid in priority for the property. The debtor or the third party specified in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property that provides guarantee is the mortgaged property. Article 425 Where the debtor or a third party transfers his movable property to the creditor to guarantee the performance of the debt, and the debtor fails to perform the due debt or the creditor has the right to be paid in priority for the movable property. The debtor or the third party specified in the preceding paragraph is the pledger, the creditor is the pledgee, and the delivered movable property is the pledged property.