Financing guarantee is the bridge of inclusive finance. The current "Constitution" of financing guarantee industry —— Regulation on Supervision and Management of Financing Guarantee Companies is inspired by article 1, and the core purpose of this administrative regulation is to "support the development of inclusive finance" and "promote financing".
What role does financing guarantee have for inclusive finance?
On the basis of giving full play to the general guarantee function, professional financing guarantee institutions have two obvious promoting functions in the financial field: one is to increase users' trust, and the other is to enlarge financial credit.
Credit enhancement function of financing guarantee: professional financing guarantee institutions use their own credit ability to provide guarantees for borrowers to financial institutions, which is their general business model. In bidding, product quality, contract performance, engineering quality, payment guarantee and other fields. The guarantor can reduce or replace the debtor's obligation to pay the deposit, reduce the debtor's liquidity and promote financing.
Through the third party's guarantee and credit enhancement, the debtor's ability to obtain or support funds in the capital market, credit market, production and circulation, engineering construction and other fields has been significantly improved. Without the credit enhancement of financing guarantee institutions, the probability of a large number of users receiving financial support will be greatly reduced, or even not. Guarantee credit enhancement has become the most direct bridge between vulnerable users and financial institutions.
The credit amplification function of financing guarantee: in the conventional guarantee business, the guarantee of financing guarantee institution is a kind of credit support, and its possible guarantee responsibility is only a contingent responsibility, which does not mean that the guaranteed debt will definitely default, thus touching its actual responsibility. This inherent mechanism of contingent liabilities allows financing guarantee institutions to expand their credit. Reflected in the specific system, it is the net assets magnification of financing guarantee institutions. According to the law of our country, "the balance of guarantee liability of financing guarantee companies shall not exceed 10 times of their net assets", and "for financing guarantee companies mainly serving small and micro enterprises and" agriculture, countryside and farmers ",it can reach 15 times.
Obviously, financing guarantee institutions can use this ability to enlarge their own credit and enlarge credit for potential users of society. If users are relatively concentrated in areas with weak financial capacity such as small micro, agriculture, rural areas and farmers, it will greatly promote the financial availability of such enterprises and improve the financial penetration rate. This is the proper meaning of inclusive finance. According to the data released by China Guarantee Forum 20 18, "after 25 years of development, the financing guarantee industry has formed a good situation with net assets exceeding 1.2 trillion yuan and guarantee capacity exceeding 10 trillion yuan". According to this figure, the credit support capacity of financing guarantee institutions alone can theoretically reach about 18 trillion.
If all these credit support forces are realized in the financial field, their impact is not dispensable, but decisive. In other words, the financial market is doomed to be incomplete without financing guarantee. In essence, financing guarantee creates and increases financial competitiveness, rather than a simple risk transfer.
Theory and practice of government intervention in financing guarantee
Financing guarantee has the function of financial amplification, which provides an effective and convenient financial tool for the government to intervene in economic development and industrial support. This point has been well reflected in theory and practice.
A foreign scholar believes that the reason why the government provides public goods is because the non-exclusiveness and non-competitiveness of public goods have caused market failure. Some scholars think that government participation in guarantee is one of the reasons for price distortion, and hold a negative attitude towards it. But the governments of most developed countries in the world are directly involved in the field of financing guarantee.
Nowadays, it has become a common phenomenon that the government uses the policy financing guarantee mechanism to support the development of small and medium-sized enterprises and vulnerable groups. Since the 1990s, our government has gradually implemented the financing guarantee policy, which has played an obvious role in promoting microeconomic entities. The microscopic example is Beijing Capital Financing Guarantee Co., Ltd., a medium-sized policy financing guarantee institution. In the 20 years since 1997, the company has "accumulated nearly 30,000 guaranteed projects and provided over 250 billion yuan of guarantee services, of which more than 95% guaranteed projects are for small and medium-sized enterprises".
Mechanism and Practice of Policy-based Financing Guarantee Industry in China: By the end of 20 16, there were about 7,225 registered financing guarantee institutions in China. The proportion of state-owned holding institutions was 26.3% in 20 14, and it has increased year by year since then, among which agricultural guarantee institutions accounted for more than 65%. In order to solve the financing problem in the field of agriculture, countryside and farmers, our government has formulated many policies. In 20 15, the State Council issued "Opinions on Accelerating the Development of Financing Guarantee Industry", which accelerated the pace of state financial funds to intervene in financing guarantee industry, and put forward the goal that "the financing guarantee for small and micro enterprises and' agriculture, countryside and farmers' will reach no less than 60% within five years".
2065438+July 2005, the Ministry of Finance, the Ministry of Agriculture and the China Banking Regulatory Commission jointly issued "Guiding Opinions on Financial Support to Establish an Agricultural Credit Guarantee System", which officially started the construction of the national agricultural credit guarantee system. At present, 33 provinces (autonomous regions, municipalities directly under the central government and cities with separate plans) have established provincial agricultural companies. By the end of 20 18, * * had set up branches 1520 (including 548 self-established institutions and 972 business outlets cooperating with local governments or other financial institutions), and * * had 2457 full-time employees (including full-time employees of branches 1499), accounting for the whole country/.
As an excellent model of this system, Anhui Agricultural Credit Financing Guarantee Co., Ltd. takes "encouraging agricultural loans" as its leading product. As of June, 20 19, financing guarantee services have been provided to 17338 new agricultural business entities, with a total loan guarantee of 7.628 billion yuan, covering more than 65% of the townships and all poverty-stricken counties, grain-producing counties and agricultural counties in the province, including one large one. By using the financing guarantee mechanism, our government has established strong supplementary support in the fields of agricultural production, rural transformation and farmers' life with relatively poor financial access.
According to the Opinions on Accelerating the Development of Financing Guarantee Industry, the State Council also set up a national financing guarantee fund, which completed the industrial and commercial registration in July 20 18, with a registered capital of 661000,000 yuan, and the initial investment of1660,000 yuan was fully put in place, and it was officially put into operation in September 20 18.
On June 20 19, the General Office of the State Council issued "Guiding Opinions on Giving Full Play to the Role of Government Financing Guarantee Fund to Effectively Support the Development of Small and Micro Enterprises and Agriculture, Countryside and Farmers", and once again put forward clear requirements for the operation of policy financing guarantee institutions: require government financing guarantee and re-guarantee institutions at all levels to return to the main business of guarantee and insist on supporting the main business of small-scale agricultural financing guarantee. Take the initiative to divest government bond issuance and government financing platform financing guarantee business, strictly control the operation scale and risk of idle funds, and refrain from making equity investment in non-financing guarantee institutions, gradually reduce the scale of guarantee business of large and medium-sized enterprises, and ensure that the small proportion of guarantee business supporting agriculture reaches over 80%. It is required that the small amount of guarantee for supporting agriculture should not be less than 80% of the total guarantee amount, and the proportion of single-family guarantee amount of 5 million yuan or less should not be less than 50%. It also requires the establishment of a risk-taking mechanism. "In principle, the proportion of risk liability borne by state financing guarantee funds and banking financial institutions is not less than 20%, and the proportion of risk liability borne by provincial guarantee and re-guarantee funds (institutions) is not less than that borne by state financing guarantee funds." In order to support small and micro enterprises, facing the problem of financing difficulty and high cost in the small and micro real economy, the government once again uses the financing guarantee mechanism to build a nationwide sustainable credit amplification mechanism. By the end of March 2065438+2009, the scale of fund re-guarantee cooperation business exceeded 80 billion yuan, and the number of guarantee households exceeded 50,000, and the policy effect began to appear.
Where will the commercial guarantee institutions in China go from here?
The positive role of financing guarantee mechanism is obvious, but the risks of financing guarantee industry are also beyond doubt. The mismatch between low income and high risk is bound to challenge the sustainable operation of financing guarantee institutions. In order to solve this problem, it is a common practice for countries to set up a sustainable financial compensation mechanism by the government to continuously "transfuse blood" for financing guarantee institutions. But if the policy is not inclusive in the guarantee industry, it will also have a certain crowding-out effect on non-state-owned guarantee institutions. According to the international experience, the financing guarantee companies participated by various governments occupy the leading position of financing guarantee, and the commercial guarantee institutions have basically withdrawn from the loan guarantee business. Not surprisingly, China may also continue this trend.
Generally speaking, the financing guarantee mechanism improves the financial availability of users, lowers the threshold of financial services, creates and enlarges credit support resources, and establishes an effective path to eliminate financial unfairness, which is inclusive finance's original intention and foothold. Policy guarantee institutions use policy constraints and incentives to focus their main business scope on small and medium-sized enterprises and "agriculture, rural areas and farmers", and use credit enhancement and leverage amplification to deeply support marginalized and vulnerable groups in market competition, fully explaining the connotation of equality and tolerance in inclusive finance's concept, improving the utilization efficiency of financial funds, and making guarantee an effective medium for the weak to embrace finance.