Wang Tianyu, deputy to the National People's Congress: It is recommended to vigorously support the innovative development of supply chain finance of small and medium-sized banks

Beijing News Express (reporter Luo Xiaojing) "Supply chain finance, as a business form in which small and medium-sized banks closely serve the real economy and solve the problem of financing difficulties and expensive financing for small and medium-sized enterprises, is facing many challenges such as breakthroughs and iterations of emerging technologies, fierce competition in the same industry, and rapid changes in customer needs, and the innovation and development of supply chain finance for small and medium-sized banks is imminent." During the two sessions of the National People's Congress, Wang Tianyu, a deputy to the National People's Congress and chairman of the Bank of Zhengzhou, mentioned in the proposal brought this year that the government should vigorously support the innovative development of supply chain finance of small and medium-sized banks to better serve the real economy.

Wang Tianyu believes that supply chain financial services are in the entire supply chain led by core enterprises, and banks carrying out supply chain finance business need to have service capabilities for industrial supply chains in the country and even global layout. As a small and medium-sized bank, especially a regional city commercial bank, the branch layout has geographical limitations, resulting in limited expansion of supply chain finance business.

"Due to the small scale of urban commercial banks, limited capital, and relatively high liabilities, financing and operating costs, it is difficult to meet the reduced capital cost needs of small and medium-sized enterprises in the supply chain." Wang Tianyu said that small and medium-sized banks are more inclined to meet the financial needs of upstream and downstream customers in the supply chain through business innovation and product innovation in the supply chain financial business, but due to market risks and regulatory requirements, some supply chain financial innovation is limited.

To this end, Wang Tianyu suggested that the innovation and development of supply chain finance for small and medium-sized banks need certain policy support from the state.

First, it is recommended that the state encourage and support small and medium-sized banks to carry out corporate business transformation and regional characteristic model innovation through supply chain finance, and expand the national market by serving upstream and downstream customers of the supply chain.

The second is to suggest improving the relevant laws and regulations of digital finance, and giving more policy support to small and medium-sized banks in financial service innovations such as standardized bills and remote account opening for enterprises. For example, the requirements of the standardized bill business for depository institutions are requested to give small and medium-sized banks more opportunities to participate.

Third, suppliers in the supply chain finance business are distributed throughout the country, while small and medium-sized bank outlets are based on local, and opening accounts in different places increases the difficulty and transaction costs of docking between small and medium-sized banks and enterprises, and it is recommended that the People's Bank of China develop a remote account opening system to support the supply chain finance business of small and medium-sized banks.

Fourth, it is recommended to combine the requirements of regional economic development and other factors, moderately relax the regulatory requirements for small and medium-sized banks to develop supply chain finance, especially online business, and give small and medium-sized banks an appropriate risk tolerance for supply chain finance.

The fifth is to give small and medium-sized banks a special risk compensation and write-off policy for targeted loans, moderately reduce the standard of write-off, and extend the pre-tax declaration time. Through a series of support policies such as regulatory policies, credit policies, write-off policies and risk compensation policies, small and medium-sized banks are guided to exert efforts in the direction of industries that meet the requirements of regional economic development, and to support the high-quality development of regional economies in a targeted manner.

Beijing News reporter Luo Xiaojing

Edited by Ying Yue Proofreader Zhao Lin

Source: Beijing News