Private Banks Explore Small and Micro Financial Services

According to "Shanghai Securities News" citing sources, the first batch of private banks is expected to be launched as soon as the second half of this year. It is reported that according to the thinking of the China Banking Regulatory Commission, the first batch of private banks may be locked in two or so, one in Beijing and the other in Wenzhou, Zhejiang, where the private economy is developed. The CBRC may, after a period of trial operation, conduct research and sum up experience, formulate rules and measures, and promote them on a pilot basis.

Actually, China's private capital entering the banking industry is not "new". The earliest attempts can be traced back to the "urban credit cooperatives" and "rural credit cooperatives" in the early stage of reform and opening up. However, due to the lack of sufficient living soil at that time, the above two types of private capital forms were quickly incorporated into "urban credit cooperatives" dominated by state-owned holdings. Commercial Banks” and “Rural Commercial Banks”.

Afterwards, in the 1990s, private capital began to try to "take shares" in joint-stock banks. By the end of 2006, the China Banking Regulatory Commission allowed the establishment of village banks. There is no restriction on private capital's participation in banking institutions. The only threshold is that it cannot obtain more than 50% of the shares. controlling stake. Up to now, the restrictions on private capital only exist in the key link of whether it can "hold" the banking industry.

Not long ago, it was reported that the central bank has formulated a plan to promote the liberalization of interest rates The overall reform plan for the process is about to be approved at the recent executive meeting of the State Council. It can be seen that the interest rate liberalization reform is "coming soon", so the role of private banks is even more indispensable. The development of private banks can not only "open up new territories" and improve various types of banking services, but also exert the "catfish effect" and force large banks to reform, and finally form a multi-level, highly efficient and fully competitive financial system.

"Opening up new frontiers"

Li Zhenxi, chairman of Baoshang Bank, once pointed out: "Insufficient financial services are an important factor restricting the development of small and micro enterprises. More private banks are one of the feasible channels." It can be seen that the establishment of private banks and allowing private capital to enter the banking industry is a boon for small and micro enterprises.

The entry of private banks into the financial industry can effectively open up new financial markets and improve the allocation of financial resources. Private capital is born in the market, grows in private enterprises, and understands the financial needs of private enterprises best. Therefore, private banks "tailor-made" for small and micro enterprises will lead small and micro enterprises out of the quagmire of "financing difficulties".

In fact, there is a "precedent" for private banks to serve small and micro enterprises. It is understood that during the transformation of "urban credit cooperatives", Zhejiang Province has retained several purely private banks through restructuring, including Zheshang Bank, Taizhou Commercial Bank, etc. The practice in recent years has shown that the operating performance of these banks is very good Yes, the unique loan model it pioneered has also made considerable gains.

"Catfish Effect"

The state-owned capital has always dominated China's financial system, resulting in inefficiencies in the banking industry and insufficient services to the real economy. The entry of private banks is conducive to breaking the "dominance of the world" by state-owned banks In turn, large banks are forced to improve operational efficiency and service quality, and ultimately serve the stable and healthy development of the economy.

The participation of private banks in the financial industry is like digging a "vent" in the iron-clad and airtight financial system, which can not only activate China's domestic financial system with strong plans, but also promote the internationalization of China's financial industry process. By then, private banks with flexible mechanisms, high efficiency, and outstanding professionalism will not only serve as "accessories" of China's state-owned financial system, but their establishment will also help the financial industry to participate in international competition, and ease the need for China's accession to the World Trade Organization. The impact of foreign capital on the domestic financial industry.

To sum up, the author believes that private banks have far-reaching significance for the market-oriented reform of China's financial industry and need to be implemented more quickly. However, any reform is a "double-edged sword", and the financial market needs to strengthen relevant regulatory mechanisms while expanding its arms and welcoming the entry of private banks. It should be noted that a free market is by no means the same as a laissez-faire market. Under the current situation, the pace of the marketization process must be "open" and "steady". The "Commercial Banking Law" and other relevant laws and regulations will be the code of conduct that private banks must abide by; the establishment of a deposit insurance system may also be a necessary "safety valve" for private banks.