Recently, the State Council issued Opinions on Promoting the Accelerated Development of Financing Guarantee Industry (short for the Opinions hereinafter), systematically schemed the promotion of financing guarantee industry to give full play of the industry’s role in the development of small and micro enterprises (SMEs), agriculture, rural regions and farmers (ARFs), as well as startups and employment, and usher more financing resources to SMEs and ARFs. According to the opinions, the proportion of SMEs and ARFs with financing guarantee should not be less than 60% within five years, the systems of financing guarantee institutions, supervision rules and policy support should be developed. The tasks are detailed from five aspects.

 

First, giving play of the government’s supporting role to improve the service ability of financing guarantee institutions. Efforts will be made in developing government-dominant, government-participating financing guarantee institutions and strengthening financing guarantee support to SMEs and ARFs. Financing guarantee institutions should intensify their self-development and build up core competitiveness.

 

Second, giving play of the government’s leading role to boost the construction of the re-guarantee system. Efforts will be made in studying and establishing state financing guarantee funds to support the development of provincial re-guarantee institutions through equity investment and technical support, boosting the nearly full coverage of governmental-led provincial re-guarantee institutions and defining the breakeven and micro-interest operation principle of provincial re-guarantee institutions which do not aim at profitmaking and have the evaluation system accordingly.

 

Third, government, banks and guarantee institutions jointly attend the work to build a sustainable commercial cooperation mode between banks and guarantee institutions. The government should give play of its role and guide the reasonable share of the financing guarantee risks among government, banks and financing guarantee institutions. Banks should improve the bank- financing guarantee institution cooperation policy to expand cooperative scale and depth, and properly rate the credit level of financing guarantee institutions to optimize the cooperation environment.

 

Fourth, effectively performing the supervision responsibilities and controlling the bottom line for risks. Efforts will be made in intensifying system construction, boosting the promulgation of the Management Regulation for Financing Guarantee Institutions as soon as possible, strengthening regional supervision, defining supervision responsibility, improving supervision level, controlling bottom line for risks, giving play of self-discipline to efficiently complement the industrial supervision and improving the quality and ability of industrial supervisors and practitioners.

Fifth, strengthening collaboration to jointly support the development of financing guarantee industry. Efforts will be made in carrying out financial and tax incentives, researching and improving relevant enterprise accounting standards, integrating financing guarantee institutions into the basic database for financial credit information properly and orderly, continuing sorting and standardizing non-financing guarantee companies and strengthening management and the construction of a long-term and effective mechanism.

 

Source: www.comnews.cn, August 14, 2015