Developmental Status of Commercial Credit
I. Commercial credit is universal.
It can be said that as long as there are commercial activities, there is commercial credit. Commercial credit as a form of financing, its most important feature is that it is easy to obtain, it does not need to go through the formal procedures, and if there is no cash discount or the use of interest-bearing notes, it does not need to pay the cost of financing, large, medium and small enterprises as well as individual entrepreneurs are able to easily obtain. Thus, it is commonly found in business activities.
Two, in all different types of economic forms, to new forms of economy or industry is particularly prominent.
Such as individual private enterprises, retail supermarkets, real estate development, consumer clubs, etc., these economic forms or industries are generally tighter control of bank credit, the use of commercial credit financing is very convenient, commercial credit is particularly active. For example, retail supermarkets take up the goods of suppliers, real estate developers pre-sale of housing, consumer clubs sell membership cards, etc., which are basically conventional and not surprising. The overall trend is that the three industries occupy more funds in the second and first industries, retail and service industries occupy more funds from suppliers and consumers.
Third, the scale of commercial credit is growing fast and the relationship is more complex.
According to the survey of 32 industrial enterprises above the size of Zhuzhou City, 32 enterprises at the end of 2005, notes payable, accounts payable, accounts receivable, three liabilities commercial credit totaled 663,545,000 yuan, an increase of 145% from the end of 1999, an average annual growth rate of 24%, which is two times the growth rate of sales revenue. The survey shows that due to the increasing difficulty and climbing cost of financing, commercial credit is more often used as a means of financing in addition to being an important means of expanding sales. This is especially true for small and medium-sized enterprises (SMEs) and individual entrepreneurs who have difficulty in obtaining loans. Zhuzhou City Lusong market group of a large-scale clothing market with an annual turnover of 1.5 billion yuan of 3,100 individual private owners of only more than 90 households have bank credit, the amount of less than 30 million yuan, and its financing methods mainly rely on commercial credit and private lending. In the fall of each year, which is the off-season for clothing sales, the operators pay almost all the cash in advance to the manufacturers, while in the winter season, when clothing sales are at their peak, they buy on credit from the manufacturers. Credit is also given to downstream retailers. The entire market prepaid deposits or payments peaked at 150 million to 200 million yuan, accounting for more than 30% of the proportion of the operator's working capital.
Four, in a variety of commercial credit to accounts receivable, advance purchase deposits and installment payments are the most common.
The net accounts receivable of 32 industrial enterprises above scale in Zhuzhou City amounted to RMB 4,155.18 million at the end of 2005, accounting for 67% of the total amount of statistically significant commercial credits (asset class). Due to the organic combination of accounts receivable, installment payment and sales discounts, the supply and sales sides can each take advantage of the win-win situation, and both sides of the transaction are happy to accept. Advance purchase deposit is mainly used more by production and processing enterprises. And notes receivable such as commercial acceptances and so on due to the complicated procedures generally use less, such as Chaling County Federation of Supply and Marketing enterprises under the jurisdiction of the use of commercial acceptances are not in recent years, the main reason is the complexity of the procedures, stringent requirements, poor liquidity, difficult to distinguish between true and false risk, enterprises, banks are reluctant to use.
Fifth, commercial credit has become an important financing method for small and medium-sized enterprises and county economic development.
On the one hand, the growing enthusiasm for entrepreneurship and the booming economy of the county needs a large source of funds; on the other hand, the commercial banks tend to profit-oriented operation makes the county financial shrinking, small and medium-sized loans are particularly difficult. This gives commercial credit a wide space for development. In the counties and cities under the jurisdiction of Zhuzhou City, commercial credit is basically divided into three parts with private lending and bank credit, and has become one of the important financing methods for the county economy, especially for small and medium-sized enterprises (SMEs) and individual private economy. For example, less than 10% of the private enterprises and individual businessmen in You County have obtained bank loans, and the county's deposit and loan ratio at the end of September 2006 was 43.5%, a decrease of 31 percentage points from the end of 2000. Liling City, a private ceramic enterprises have been founded five years, annual sales revenue has reached 18 million yuan, but so far no penny bank loans, mainly relying on advance receipts and accounts payable to solve the liquidity, the end of 2005, commercial credit liabilities amounted to 4.2 million yuan.
Sixth, commercial credit in a spontaneous state.
How much commercial credit an enterprise can carry or actually possess is not defined by any regulations, and no one can know. In addition to a small number of standardized management of enterprises, most enterprises for their business partners in the end how much credit should be given mainly to achieve the sales target of the need and the operator's feeling. At present, commercial credit is generally in a spontaneous state, with no supervisory department, no supervisory organization, no supervisory system and no channel for inquiry. Including the implementation of the People's Bank of China's "Interim Measures for the Administration of the Personal Credit Information Basic Database" and the relevant provincial, municipal and autonomous regional governments are working on the credit information management methods, are focused only on the collection of bank credit information, while the commercial credit may be too decentralized and difficult to simply avoid talking about it.
What is the current outlook and status of the credit collection industry in China?
China's corporate credit history
China's corporate credit initially took the form of paper loan certificates, and has gradually developed into a corporate credit market with informatized equipment, specialized content, and diversified business. China's enterprise credit rating has roughly gone through four stages of development, which are described as follows.
Participants in China's corporate credit market
There are two main types of existing participants in China's corporate credit market, one is the credit credit system, and the other is the market-based credit agencies. Credit credit system refers to the People's Bank of China credit center; market-based credit agencies include can be divided into Chinese-foreign joint venture agencies, foreign-funded agencies, domestic agencies, as of December 2020, the People's Bank of China filed in the enterprise credit agency **** there are 131.
Currently, China's corporate credit collection market forms a development pattern based on the central bank's credit collection system and extended by market-based credit collection agencies.
People's Bank of China Credit Center Corporate Credit
--Construction of the Central Bank Credit Center Corporate Credit System
The People's Bank of China Credit System is the world's largest credit collection system, and as of the end of December 2020, the Central Bank Credit System*** included 60,092,300 million enterprises and other organizations, and the number of enterprise inquiries for credit reports reached 69.35 million in FY2020.
--Types of Enterprise Credit Products of the Central Bank Credit Center
The enterprise credit products of the Central Bank Credit Center of the People's Bank of China (PBOC) are mainly enterprise credit reports, which are extended on the basis of credit reports to include analysis of the structure of credit assets, risk alerts for public business, and related inquiries. Corporate credit report is the most basic and important product of the central bank, mainly through the basic information about customers, credit information, public **** life information, statement information collected by various commercial banks, branches of the People's Bank of China and other channels.
Types of enterprise credit products of marketized institutions
Types of enterprise credit products of marketized institutions are very rich, according to the official website disclosure of enterprise credit institutions with strong comprehensive strength in China, enterprise credit business mainly includes commercial credit service, due diligence service, credit monitoring service, credit risk solution, financial leasing business enhancement, main rating, debt rating, etc. The distinctive feature of market-oriented credit agencies is that the business can be developed in a timely manner along with the market demand to effectively meet the new market needs.
--The above data refer to the Prospect Industry Research Institute's "China Credit Collection Industry Market Outlook and Investment Strategy Planning Analysis Report"
The current situation of the development of China's rural microfinance business, to be introduced a little more carefully.
In recent years, financial institutions have carried out microcredit loans, student loans, and small guaranteed loans for laid-off and unemployed people with a wide impact, which have played a positive role in promoting the employment of urban and rural residents and the healthy development of the national economy. However, in the process of developing microcredit business, it still faces many difficulties and challenges. The author on this issue, for the following discussion and analysis.
A microcredit business development of the current situation
From 1993, the Chinese Academy of Social Sciences Institute of Agricultural Development, Yi County, "Poverty Alleviation Society" pilot counting, China's microcredit business has experienced more than a decade of wind and rain. However, due to the imperfection of the financial system, the immaturity of the main borrowers and other objective factors, to date, the microcredit business has not yet achieved exciting practical achievements, and is far from some successful developing countries as "the development of an active and important new industries or sectors. Microcredit business in China's slow development, can not keep pace with the pace of economic development, but also can not meet the financial needs of customers:
(a) the loan amount is small. With the development of the economy, urban and rural residents' willingness to start their own businesses and awareness of the growing demand for capital. However, due to the limitations of the amount of microcredit business, usually can not meet their financial needs. At present, loans for laid-off and unemployed people run by commercial banks are generally 20,000 yuan per person, with individual areas raising the limit to 20,000-50,000 yuan; some rural credit unions issue microcredit loans to farmers with a limit of 0.5-50,000 yuan. To farmers to buy and build a building of vegetable greenhouses, for example, according to the current LinYi market price, build a building of vegetable greenhouses about need capital of 60,000-80,000 yuan, plus labor wages, seeds, fertilizers and so on about need 20,000 yuan, from the construction of greenhouses to the start of the operation of the need for investment of 80,000-100,000 yuan, such as according to the above limit of credit, there is still a considerable gap in funds. Therefore, the loan amount is on the small side and cannot meet the actual needs of customers.
(ii) Shorter loan period. Agricultural projects are characterized by large investment, slow results, high risk, long recovery period, etc., while the maximum term of microcredit business is one year, and the maximum term of laid-off unemployed loans is only two years. Farmers and laid-off unemployed people generally do not have a fixed income, which is easy to cause the loan overdue, not only increase the interest burden of the borrowers, affecting their motivation to repay the loan. Moreover, it is not conducive to reflecting the authenticity of the quality of loans; it is not conducive to the rational arrangement of funds by financial institutions to improve the efficiency of the use of funds; and it affects the relevance and effectiveness of financial decision-making.
(3) Microcredit mode is single. Some areas of microcredit is not carried out in conjunction with the industrialization of agricultural management. Due to the asymmetry of information, resulting in getting the farmers products are difficult to sell, or unable to prevent market risks, unable to withstand natural disasters, the use of efficiency and economic benefits greatly reduced.
(4) credit system lags behind. In previous years, due to the low level of electronic construction of financial institutions, the lack of historical credit records, credit investigations rely only on the creditors part of the customer's understanding, there is inevitably the phenomenon of inaccurate investigations, inadequate estimation of risk, etc.. In addition, some areas of the financial ecological environment is relatively poor, some customers exist in the debt evasion and renegotiation ideas, the quality of pre-credit investigation can be imagined.
(E) insufficient sustainability. First, the local government willingness is not strong. the end of 2002, the People's Bank of China issued the "laid-off unemployed micro-guaranteed loan management measures", the micro-guaranteed loan issued by the object, the amount, the period, the guarantee and interest rate subsidies and other clear provisions. However, because this policy involves government-funded guarantees and partial interest subsidies, coupled with a small amount, local governments are not highly motivated in the implementation process. Secondly, because agriculture is affected by natural climatic factors, market factors and other factors, there is a greater risk potential, especially breeding, planting and other industries, by natural disasters or market turmoil often blood money. In addition, due to the accumulation of small amounts of funds by farmers, the ability to resist risk is weak, so it causes part of the credit funds to form a bad, a large number of loans can not be recovered, thwarting the incentive for financial institutions to issue. Third, the company can not absorb public deposits, only rely on external capital injection, the lack of sustainable sources of funding, affecting the development of microfinance.
What is the current situation of consumer credit in China? What is the impact on our economic life?
Chinese credit consumption began in the 1950s, and then credit consumption was once canceled. The bank to housing as a breakthrough in the credit consumption started in the 80s, but in the shortage of economic dominance, the market economy is not yet developed, credit consumption does not have the full development of the economic foundation and market conditions, so the credit consumption of a single variety of narrow range, small scale, only in the embryonic and exploratory stage. 1990s, China's rapid economic development, the residents' living standard Since the 1990s, China's economy has been developing rapidly and the living standard of the residents has been improving, and there has been a relatively strong demand for housing and automobiles. At the same time, with the formation of the buyer's market, the lack of consumer demand has become a major constraint on economic growth, the government has taken a variety of measures to expand domestic demand, credit consumption as an effective means of consumer demand has been emphasized and popularized, and various policies, laws and regulations aimed at encouraging personal credit consumption have been introduced one after another. By the end of 2003, commercial banks nationwide had a balance of RMB 1573.6 billion yuan in consumer loans, a 90-fold increase over the RMB 17.2 billion yuan at the end of 1997, of which the balance of individual housing loans was RMB 1178 billion yuan, and the proportion of credit consumption in all loans had risen from less than 0.13 per cent to 10 per cent. From the perspective of institutions providing credit consumption, all domestic commercial banks and credit cooperatives have started consumer credit business to varying degrees, while the four major state-owned commercial banks, namely, the Industrial, Agricultural, Chinese and Construction Banks, are the mainstay of the consumer credit market, with the balance of their consumer credits accounting for 88% of the total amount of consumer credits provided by all financial institutions. In terms of the varieties of credit consumption, the development in recent years has resulted in the formation of a system of over a dozen major categories and hundreds of varieties of credit consumption varieties, including personal housing and housing renovation, automobile consumption and credit card consumption, large-value consumer durables, education and education assistance, tourism and medical care loans, comprehensive personal consumption and short-term personal credit and revolving line of credit loans, and other varieties of credit consumption varieties. From the data provided above, it can be seen that among the consumer credits issued by banks, personal housing loans occupy an overwhelming advantage. This shows that China's credit consumption business varieties have a lot of room for innovation, some very promising credit consumption varieties in China is basically still blank. In addition, some credit consumption varieties have been carried out in China, but the depth of development is still far from enough. It can be expected that after the establishment of the social credit system, credit card-based consumer credit will usher in a phase of rapid development. From the current practice of financial institutions, the development of China's consumer credit should make significant progress in the following areas: (a) focus on the development of personal housing and automobile credit consumption personal housing loans in China's current development of credit consumption occupies an absolute proportion of the next period of time, personal housing loans are still the focus of the development of consumer credit should be on the basis of effectively reducing the risk of housing loans, expanding the scope and proportion of housing loans, focusing on the development of On the basis of effectively reducing the risk of housing loans, the scope and proportion of housing loans should be expanded, with emphasis on the development of mid-range housing loans. In addition, as the popularity of automobiles increases, the demand for automobile consumer loans will increase significantly, which will become a major growth point for consumer credit. (ii) Vigorously develop credit card business and credit consumption of personal durable consumer goods The proportion of credit card business in the U.S. is second only to that of housing credit, and China's commercial banks should seize the favorable opportunity to vigorously develop credit card business after the establishment of the social credit system, encouraging consumers to consume first and pay back later, and making credit cards into real credit cards. In addition, they should also vigorously promote commercial sales outlets and consumer outlets for credit card payments. According to statistics, our consumer durables loans account for a small proportion of our credit consumption business, and the market potential is huge. For this reason, commercial banks should actively cooperate with merchants to carry out various forms of loans for consumer durables. (iii) Vigorously develop credit consumption for student aid and tourism At present, the proportion of student loans in China is still relatively small, and commercial banks should take various forms to vigorously promote them. Relatively speaking, student loans are essentially a way for consumers to finance their present education with their future income, and their loan recipients are generally of high quality, so if they can be reasonably guided, they should be able to become a good credit variety. In addition, with the growing importance of the holiday economy and the increasing expenditures of residents on tourism, commercial banks and related financial institutions and tourism companies should respond positively to the relevant national policies and vigorously promote tourism credit consumption within the scope permitted by national laws. (d) Drawing on the advanced business methods of credit consumption in the United States, financial institutions should actively cooperate with relevant organizations, combine with the actual situation in China, vigorously develop new varieties of credit consumption, explore the feasible issuance modes and risk control modes of these varieties of credit consumption in our country and actively improve and implement them in order to improve the system of credit consumption in our country as soon as possible. For example, different loan varieties are formulated for different consumer groups, operating vehicle loans are provided for individual businessmen and transportation operators, and small family business loans are provided for urban and rural families with entrepreneurial consciousness. At the same time, for different credit consumption varieties and loan objects, a variety of choices can be provided for consumers in terms of interest rate term and repayment methods. The development of consumer credit is promising, but the road to development is still very long, and its process is constrained by many factors such as the construction of credit system and residents' consumption concepts. In order to promote the healthy and rapid development of consumer credit, we should do a good job in the following aspects of protection: (a) strengthen publicity, change the traditional consumer attitudes in China's market economy has stepped into the buyer's market, advocating moderate debt consumption is very important. Therefore, it is necessary to increase publicity efforts to guide residents to change the consumption concept of debt-free, to realize the shift from debt-free consumption to moderate debt consumption, and gradually improve the level of consumer credit of the residents. China's residents credit consciousness is still relatively weak, financial credit knowledge is still relatively poor, so enhance the consumer's credit concept, credit knowledge and financial knowledge, is the development of consumer credit and expand domestic demand is one of the important conditions. In addition, for banks and other financial institutions, it is also necessary to gradually increase the proportion of individual credit business, change the concept of industrial and commercial credit, light consumer credit, fully understand the role of consumer credit in the development of financial credit and the development of the social economy, and increase the efforts to publicize the development of consumer credit policy orientation, market orientation and its operational methods, and strengthen the business consulting services. (ii) Adjust the income distribution policy and raise the real income level of the residents The level of real income of the residents directly affects the degree of development of consumer credit. Therefore, the state should take measures to increase income in the income policy to ensure that the income of urban and rural residents has a reasonable growth rate; in the distribution policy to further narrow the income gap, speed up the establishment and improvement of the social security system, so as to change the income and consumption expectations of the residents in order to consume a reasonable growth. (C) the establishment of consumer credit credit risk prevention system credit risk prevention level directly affects the success or failure of consumer credit. The current personal consumer credit development is not fast, the main problem is not in the bank, but in the external environment is not perfect, not supporting. But the bank in the development of consumer credit, should be ahead of the awareness, make full use of the existing conditions, through financial means to promote the healthy development of personal consumption. 1, as soon as possible to build a personal credit system. In addition to the establishment of the citizens' basic information database, it should also speed up the integration of citizens' basic information and banks' credit information, establish and promote as soon as possible the personal credit risk scoring model and the computerized approval system of consumer credit suitable for China's national conditions, set up regional and national personal credit investigation and evaluation firms or personal credit investigation firms, carry out continuous investigation services for the income status of the investigated persons, etc., and establish the borrowers' credit data model of the borrowers, accumulate information and analyze it regularly, and at the same time connect banks with other departments such as the government to explore the way of information **** enjoyment. In view of the current situation in China, firstly, it is necessary to introduce relevant laws as soon as possible to clarify its service targets, market access and exit norms, business scope, compensation mechanism, etc.; secondly, it is necessary to cultivate a group of high-quality practitioners with professional knowledge of personal credit assessment to promote the maturity and authority of assessment; thirdly, it is necessary to formulate unified assessment standards to enhance the comparability of the results of various assessments and to prevent unfair competition among assessment organizations; fourthly, it is necessary to establish an industry-wide credit appraisal system to prevent unfair competition; fourthly, it is necessary to establish an industry-wide credit appraisal system. The third is to formulate unified appraisal standards to enhance the comparability of appraisal results and prevent unfair competition among appraisal organizations; and the fourth is to set up industry associations to strengthen industry self-discipline and the self-construction of appraisal. 2. We should learn from the experience of developed countries to gradually improve the guarantee system for individual consumer credit and reduce the risk of consumer credit. First of all, the guarantee law should be improved to increase the provisions on consumer credit; secondly, a standardized housing secondary market should be cultivated so that mortgaged properties can be conveniently liquidated; thirdly, banks should work closely with insurance companies to reduce risks by combining consumer credit with life insurance, property insurance, and performance guarantee insurance; and lastly, studies can be conducted on the formation of a consumer credit guarantee company by the government to provide guarantees for consumer credit, especially for long-term consumer credit. Finally, we can study the formation of a consumer credit guarantee company by the government to provide guarantees for consumer credit, especially long-term consumer credit. (iv) Improving the social security system At present, the socialization of the social security system is far from adequate to completely relieve people's worries, so it is very urgent to establish a social security system that combines commercial and mandatory coordination. Therefore, the establishment of a comprehensive social security system covering all urban residents should be taken as a very urgent task to grasp, the construction of the rural social security system should also be carried out in a focused and step-by-step manner. (v) Strengthen the training of professionals in the consumer credit business practitioners not only need to be familiar with modern professional knowledge, but also must have bank savings, settlement, financing, financial management knowledge and market research and interpersonal communication skills, that is, to become all-rounded comprehensive talents. Since consumer credit in China has just started, business personnel come from various departments, and the quality of personnel is uneven and low overall. Therefore, it is particularly urgent to strengthen the training of practitioners.
The introduction of the current status of credit loan development will chat here.