Significance of developing non-bank financial institutions in China

In the process of China's rapid economic development and the continuous reform of the financial system, the total assets of China's non-bank financial institutions have increased rapidly on the basis of a low starting point, but their proportion in the whole financial institutions has not been improved smoothly, and their internal structure is unreasonable, which seriously restricts the improvement of the efficiency of the financial system and the healthy development of the real economy, and will put China's financial industry at a disadvantage in the future international competition and face greater financial risks.

First of all, improve the institutional arrangements for the development of non-bank financial institutions and standardize the financial market order. Although the development of non-bank financial institutions in China has a history of nearly 30 years, there is a long-term lack of corresponding institutional arrangements, and trust companies have problems such as weakened risk control, insufficient capital, illegal operation and serious losses. There are many problems in financial companies, such as excessive administrative intervention and excessive loan concentration. All these have led to the slow development or even stagnation of non-bank financial institutions. Therefore, to develop non-bank financial institutions, the government must further improve the corresponding institutional arrangements, promote the innovation of financial institutions, and promote the healthy and orderly development of non-bank financial institutions. At present, we can consider vigorously developing microfinance companies, transforming some quasi-financial institutions into credit institutions, and accelerating the construction of financing platforms for small and medium-sized enterprises.

Secondly, various preferential policies for the development of non-bank financial institutions will be introduced in a timely manner to promote the rapid development of non-bank financial institutions. Non-bank financial institutions are financial innovations in a tight monetary environment. It is necessary for the government to create opportunities for the rapid development of non-bank financial institutions through financial subsidies, tax incentives and other means. For example, on the basis of perfecting the system, we should supplement the capital of non-bank financial institutions by means of financial subsidies, and implement differentiated tax policies for these enterprises to promote their rapid development and better realize the efficient allocation of capital.

Third, the government should actively guide non-bank financial institutions to tilt financial services to SMEs. Like the banking system, non-bank financial institutions may prefer large enterprises and large projects. Therefore, the government needs to further innovate financial instruments, establish the financing relationship between non-bank financial institutions and small and medium-sized enterprises through financial fund guarantee, improve various loan guarantee institutions and set up various guarantee companies to meet the flexible demand of small enterprises for mortgage loans. In addition, in order to promote the virtuous circle of non-bank financial institutions providing financial support to SMEs, the government should actively build a financing platform between non-bank financial institutions and other institutions such as banks, provide financial support to non-bank financial institutions, realize the diversification and stabilization of non-bank financial institutions' funding sources, promote the rapid development of non-bank financial institutions, and effectively solve the financing difficulties of SMEs.