This article is from the public number: New Financial Ranking (ID: finrank) < span class = "text-remarks">, author: Dong Yunfeng, from the title figure: vision China
“The system should not be unclear, let alone the system regulations are clear or even strict, but in practice it can be rooted.Depending on the situation, practitioners are allowed to consider what they can and cannot do, while allowing regulators to have excessive discretion to determine what needs to be punished and what can be relaxed. “
After years of regulatory rectification, the P2P industry has still not escaped its fate.
Today, the collection industry is basically blocked, and the data industry has suffered a terrible disaster. It is hard not to worry about the future of the loan assistance business.
Where to go for the loan assistance business is currently the biggest mystery in the new financial field, and it is also the “Sword of Damocles” hanging over many practitioners.
Thanks to strong market demand, the loan assistance business has boomed in recent years. According to Caixin, the scale of joint loans between banks and fintech companies has reached about 2 trillion yuan, involving hundreds of banks and other financial institutions. Such joint loans are only part of the broader loan assistance.
However, The regulatory uncertainty has cast a shadow over the future of loan assistance, which is not only related to the future and fate of many loan assistance institutions, but will also affect the credit of financial institutions. Business innovation pace.
On December 1, at the 2019 First Finance and Financial Technology Summit, Yang Kaisheng, a member of the International Advisory Committee of the Banking and Insurance Regulatory Commission and former president of Industrial and Commercial Bank of China, called for standardization of development assistance, rapid establishment of rules, and timely introduction of necessary administrative rules and regulations. Regulatory system.
Yang Kaisheng believes that the system should not be ambiguous, and it should not be clear or even strict, but in practice, according to the situation, practitioners can allow themselves to consider what can be done and what is not. It can do it, while allowing regulators to have excessive discretion to determine what needs to be punished and what can be relaxed.
“This is not only conducive to the healthy development of any new business, but also inconsistent with the implementation of the concept of governing the country according to law.” Yang Kaisheng said.
In October this year, the China Pratt & Whitney Institute for Financial Studies (CAFI) “Research Report on Innovation and Supervision of Loan Assistance Business” = “text-remarks” label = “Note”> (referred to as “Report”) It is also recommended to clarify the legal status of the loan assistance obligations as soon as possible, and to clarify the business norms of commercial banks and loan assistance institutions.A series of compliance problems in the process of business development require regulatory authorities to clarify relevant policies as soon as possible in order to rectify deviations.
As Yang Kaisheng said, with the advancement of technology, with the continuous maturity and use of technologies such as the Internet, big data, cloud computing, and blockchain, the relationship between banks and external and customers has undergone major changes. The credit business alone cannot do a good job. He said, “The so-called loan assistance and joint loans are new things that have emerged in this new situation. This should be affirmed.”
Please help loan a way out.
1 The value of loan assistance
In a broad sense, the loan business carried out by banks and intermediaries, including fintech companies, can all be regarded as loan assistance. If a FinTech company participates in funding, it can generally be classified as a joint loan; if there is no funding, only auxiliary services are provided (mainly before the loan) , it is Loan assistance concept in a narrow sense.
Loan assistance is not a new thing. Today, what we call loan assistance generally dates back to the 2007 China Microelectronics and China Development Bank ’s micro-credit trials, and the same period of Alibaba, CCB, and ICBC’s online merchant loan test. .
However, loan-assistance has begun to receive widespread attention, beginning with the rise of Internet consumer finance, especially the explosive growth of borrowing and micro-credit loans, which has led a large number of fintech companies to enter the loan-assistance business.
Since the end of 2017, cash loans and online small loans have been subject to regulatory rectification. Fintech companies ‘leverage has been severely restricted, and they are increasingly relying on financial institutions’ funds to further promote loan lending as the mainstream of Internet credit.
Actually, The word loan assistance should not be so sensitive. In the financial field, cooperation between financial institutions, financial institutions and non-financial institutions has always been the norm.
Going forward, cooperation, which is the division of labor, is the core driving force for the progress of human civilization, and it is also a basic feature of a market economy.
From the perspective of economics, assisting loans is the concentrated expression of the principle of comparative advantage. Financial institutions and loan-assistance institutions each exert comparative advantages to achieve a win-win situation.
From the perspective of China Pratt & Whitney Financial Research Institute, the essence of the loan assistance business is branchless banking services, and loan assistance institutions are banks and other funders who provide loans to borrowing customers.Third-party intermediary services. Compared with laying outlets, it can achieve lower cost and higher efficiency through loan assistance institutions.
Taking the “bank + small loan company” loan assistance model as an example, it comes from the need of banks and small loan companies to have complementary advantages, that is, banks are not good at providing services to small and micro customers, and small loan companies are just accumulating It has acquired customer experience and risk control technology for small and micro customers; small loan companies have natural shortcomings in capital, and banks can directly provide funds with cost advantages to small and micro customers recommended by small loan companies.
The Report points out that the loan assistance business has great practical significance: First, it will help achieve the goal of financial inclusion; second, it can improve credit supply and form a multi-level credit system; third Loan assistance is a cooperative mode where the two parties have complementary advantages. Fourth, loan assistance is an effective vehicle for fintech to serve the real economy. Fifth, it helps to improve the risk control capabilities of banking financial institutions.
In the industry, the business logic of the loan assistance business has been widely recognized. Especially with the help of fintech, there is a lot of market demand and development space for the loan assistance business. The fintech-based online full-process service not only reduces the service cost, but also allows the participating entities of the loan assistance business to achieve a “1 + 1> 2” cooperation effect.
2 The embarrassment of loan assistance
The end of 2017 was a watershed in the development of loan lending business. Since then, the loan lending business has encountered a sporty rectification and entered a period of shock.
Taking Shenzhen as an example, the main mode of its loan assistance business is bank + small loan company. According to the statistics of the Shenzhen Association of Small Loan Companies, the total balance of the loan assistance business in Shenzhen before the end of 2017 was about 1 trillion yuan. Since 2018, the scale of the loan assistance business has continued to shrink, and the entire loan assistance business has shrunk by more than 90%.
This watershed started in Document No. 141-December 1, 2017. The Office of the Leading Group for Internet Financial Risk Special Rectification and the Office of the Leading Group for P2P Online Lending Risk Special Rectification jointly issued the “About Regulating” Cash Loans ” “Notice of Business.”
Circular 141 pointed out that the loan assistance business should return to its original origin. Banking financial institutions must not accept credit guarantee services in disguised forms such as credit guarantee services provided by third-party institutions with unsecured qualifications, as well as commitments in disguise, and should require and ensure that third-party cooperative institutions must Charge interest to borrowers.
The regulatory documents that were originally designed to crack down on cash lending have brought a severe shock to the loan assistance business.
The “Report” pointed out that Circular 141 emphasized that the origin of loan-assistance return to inclusive finance was correct, but the overly strict regulations not only restricted the main financing channels of loan-assistance institutions, but also blocked the flow of funds from banks The important channels of the real economy and small and micro enterprises have seriously discouraged the enthusiasm of the loan assistance institutions and banking financial institutions for cooperation, and have also increased the financing difficulty and operating costs of small and micro enterprises.
The embarrassment of loan assistance is that On the one hand, there are no formal laws and regulations, but on the other hand, it is a long-term supervision.
At present, China’s legislation on loan assistance supervision is in a blank state, and no laws or regulations regulate the loan assistance business. Judging from the current laws, the Commercial Bank Law only regulates the commercial bank’s business norms. It does not target the loan-assistance business, nor can it regulate the loan-assistance business with the participation of commercial banks.
China Pratt & Whitney Financial Research Institute believes that this is not only detrimental to the protection of the legitimate rights and interests of the participants in the loan assistance, but also to the supervision and management of the loan assistance business. In the market, loan-assisting institutions are easily regarded as alternative enterprises, and even confuse them with private lending or usury, causing confusion in the public perception of loan-assistance and negatively affecting the long-term and stable development of the loan-assistance business.
Meanwhile, the lack of laws and regulations clearly defines the ownership of the regulation, which leads to the prolonged supervision in the field of loan assistance and the lack of regulatory focus. As a result, the effectiveness of supervision is not only detrimental to the development of the industry, nor can it truly prevent risks.
The current situation is that the Banking and Insurance Regulatory Bureau is responsible for the guidance and supervision of commercial banks’ loan assistance business. > Responsible for the business and risk supervision of loan assistance institutions, while the mutual gold industry associations and small loan industry associations conduct compliance review and daily management of loan assistance institutions.
The “Report” points out that these organizations have different footholds and different perspectives on supervision, which makes it difficult to coordinate regulatory policies. There are multiple policies and different agencies adopt different segmented supervision methods for different institutions. In fact, the “railway” The “think of the police, one section at a time” leads to unclear supervision responsibilities, affects the overall effectiveness of supervision, exposes many regulatory blind spots, leaves a lot of hidden dangers, and provides a certain space for regulatory arbitrage.
3 Supervision must be carried out quickly
In summary, the key issues in the current field of loan assistance are inadequate supervision, unclear policies, and inadequate legal status.It is clear that this may lead to a mix of loan-assisting institutions and constant violations, which will increase the interest rate of the loan-assistance, which will not only harm the healthy development of the inclusive financial industry, but also make it difficult for demanders who really need low-interest loans to obtain funds.
In the long run, the loan assistance institutions will lose the real value of their existence, and the banks will gradually lose the customers they deserve, resulting in a lose-lose situation.
In this regard, China Pratt & Whitney Institute of Finance suggested that “this issue needs to be clarified by the central supervisory authority first, otherwise a series of other follow-up issues cannot be discussed, because local governments have no decision power and must obey the central supervisory authority’s unification Deployment, the financial supervision department of the local government ca n’t and dare not act rashly.
The Report clearly puts forward three regulatory recommendations for loan assistance business:
First, establish the legal status of the loan assistance business as soon as possible , improve the institutional arrangements for the loan assistance business, clarify the rights and obligations of each participant in the loan assistance, improve relevant supporting regulations, and coordinate and coordinate the loan assistance Legal relationships to enhance the legal basis and regulatory effectiveness of loan assistance businesses.
The second is to implement a supervisory system of leading review and hierarchical submission of review. It is suggested that the CBRC is responsible for the unified formulation, release and implementation of the supervision rules for loan business; local financial offices (Local Financial Supervision and Administration Bureau) There is no need to directly supervise the loan assistance institutions within its jurisdiction, but mainly adopts the “report and review” system, and financial institutions (funding side) The relevant data submitted by the credit institution shall be subject to written review, risk assessment, and finally decide whether to adopt and hire.
Third, further explore the charging methods of loan-assisting institutions. Circular 141 simply stipulates that banking financial institutions shall require and guarantee that third-party cooperative institutions shall not charge borrowers interest rates, No other fees are clarified and restricted, which leaves room for imagination as to whether the loan assistance agency can charge a reasonable intermediary service fee to the customer.
The Report mentions that historical experience shows that administrative intervention in commercial financial institutions and credit-assistance institutions’ excessive credit often results in a loss of credit allocation. Because most administrative agencies intervene in the market from their own perspectives, a series of regulatory measures have been introduced in the short term to form a synchronous shock to the market, which is not conducive to the stability of the financial market.
Based on this, China Pratt & Whitney Institute of Finance recommends that from central regulatory agencies to local banking and insurance supervision bureaus, from local financial offices to mutual gold industry associations, they should fully communicate and coordinate to form a consensus on supervision and form a synergy of supervision. In addition, regulators should make full use of regulatory technology to achieve more effective industry regulation.
It can be expected that with the reasonable guidance of the supervision and the steady growth of market demand, it will bring huge development space for the loan assistance business. In the future, loan-assisting institutions will conduct more comprehensive competition in terms of scenarios, traffic, technology, risk control, and shareholder background.
This article is from public number: New Financial Ranking (ID: finrank) author: Dong Yunfeng