The central bank said that the increase in social financing in April 2022 will be 910.2 billion yuan. What does this data show?

From the point of view of a bank’s grass-roots employees, social financing has dropped sharply

I am a basic bank employee. I have worked in the bank for more than 7 years and have been in the personal loan business for three years. Last year, I left the personal loan business line and joined the management post. Last Friday, I saw that the social finance data was very poor. If I want to talk about my views boldly, it is all from the bottom of my heart. If there is anything wrong, please delete it from the platform, the Internet police don’t arrest me, and the supervision don’t check me.

Let me introduce my three years of experience in loan business.

In 2018, the central government began to require banks to do inclusive financial services. This policy has indeed solved the problem of difficult and expensive financing for small and micro enterprises. At that time, although the economy was affected by the trade war, it was controllable as a whole, and the initial loan interest rate for small and micro enterprises was generally around 6%. The bank still has some profits, so the bank began to focus on this business. I was also transferred to the Personal Credit Department at the end of 2018 to mainly do personal business mortgage loans, which are a type of inclusive loans. In the second half of 2019, regulators stepped up their assessment of banks’ inclusive finance business and required banks to reduce the interest rate on inclusive loans. Due to regulatory requirements, almost all banks have begun to carry out inclusive business on a large scale, and there are only so many high-quality enterprises operating in real business. In order to grab business, vicious competition has begun between banks, and interest rates have dropped again and again. By the end of 2019, it has dropped to 5% or so. In 2020, due to the impact of the epidemic, economic growth has been sluggish, and a large number of small business owners and individual industrial and commercial households have gone bankrupt. The inclusive non-performing loan ratio of banks has risen rapidly, but the inclusive tasks assigned to banks by supervision continue to increase, and as the state requires banks to further reduce financing costs for small and micro enterprises and vicious competition among banks, the inclusive loan interest rate has dropped to the benchmark The interest rate, even the interest rate for loans with a term of more than one year, has reached about 4, and the inclusive financial business has become a political task. At that time, I was very confused, 1. Why did the bank lose money to do this business? 2. How many companies can really meet the approval requirements set by the bank? 3. Can the customer’s collateral keep its value forever? 4. Will my previous clients hold me accountable if they are overdue due to the epidemic? Under all kinds of confusion, I no longer dare to lend. The examination and approval department of our bank should have the same confusion as me. The examination and approval policy on the real operation and operation status of the business entity is more strict. Strict policies have led to a sharp drop in the amount of loans granted by the inclusive loan business, lower income for account managers who fail to complete their tasks, and leaders who fail to fulfill their tasks will be held accountable by their superiors and supervisors. So everyone began to force the approval department to relax the approval policy. Under the pressure, the approval finally bowed its head. In addition to the principled bottom line policy, other aspects have been relaxed to a certain extent, and some relaxations have left customers with loopholes. I feel more and more embarrassed, 1. The bank assigns many tasks to each customer manager. 2. There are fewer and fewer customers who meet the basic approval conditions. The basic conditions are: real operation, stable operation, the industry is not easily affected by the epidemic, and there is normal collateral. 3. If you want to complete the task of loan amount assigned by the leader, you must drill through the loopholes in approval and help customers get the loan, but this is too risky, and the bank will definitely hold me accountable if there is a problem with the loan. If the income is too low to complete the task, the leader will also supervise and criticize me. Just as embarrassed as me were the hundreds of thousands of bank employees at the grass-roots level. In the end, most bank account managers in the country chose to lend their loans to some high-quality small business owners and customers who used the loans to buy houses. In 2020 and 2021, the growth of the manufacturing industry will be sluggish and the housing prices of first-tier cities will rise rapidly. Regulators realize that funds have not entered the manufacturing industry and small and micro enterprises, so they have started a major inspection of the use of banks’ inclusive loan funds. Dozens of banks If you are fined, many employees must be punished accordingly. Since I am very cautious, the business volume is not large, I have no bad loans and I have not been punished, but my income is naturally not high. There is a good opportunity in August 2021, so I will decisively choose to leave my original position. After arriving at the management position, I have come into contact with more companies and learned more information, and I feel that inclusive finance business and even manufacturing loans are too difficult. The specific analysis is as follows: Banks are commercial institutions, and all business is for profit. At present, the interest rate of inclusive and manufacturing loans is low and the risk is high. The money lost by banks in inclusive and manufacturing business is definitely not a small amount. Take the bank I work for as an example. Every year, the whole head office needs to release 100 billion inclusive loans. I expect non-performing loans to be around 10%, and the average interest rate will lose 30 bp per loan. Therefore, it is estimated that in inclusive business every year. To lose more than 10 billion. However, most of the commercial banks are state-owned enterprises, and they should take social responsibilities. They have made a lot of money in the past few decades. When the country is in trouble, state-owned banks should repay the society. But if a problem loan is formed, it is the grassroots employees of hundreds of thousands of banks who will be held accountable. Every bank has a strict loan approval system and a problem loan accountability system. A strict loan approval system is the basis for a bank to operate normally, and it is impossible for a bank to lend funds to companies with operational problems. However, the regulatory agencies have given each bank a lot of tasks for inclusiveness and manufacturing. Under the current economic situation and the impact of the epidemic, there are very few companies that meet the bank’s approval policy. Approval turns a blind eye to the phenomenon. There’s a good chance that these loans will go wrong, and that’s when the bank’s accountability system kicks in. Most banks require that the loan should not be overdue for the first loan, or within a year. However, the epidemic situation is severe, and every day there are places where the city is closed due to the discovery of cases. As long as the closure is for one month, many business owners will have a tight capital chain or even go bankrupt. Therefore, no matter how well-run a company is, there is really no guarantee that it will be able to operate normally within a year without being affected by the epidemic. As long as there are no economic problems, most of the bank’s top leaders will not be seriously held accountable for loan problems in manufacturing or inclusive business, while grass-roots employees will be deducted from performance, suspended from business, unable to be promoted, and changed jobs. In this case, banks will rush to lend to leading manufacturing companies or a very small number of high-quality small and micro enterprises, while most other enterprises cannot get loans, and these loan funds are often not used for business operations. In addition, the supervision is now strictly investigating the use of loan funds. If there are violations such as inflows into the housing market and the stock market, the handling account manager will also be held accountable. However, the account manager cannot fully guarantee that the client’s funds will be used properly. First, the bank has used the method of entrusted payment to lend money. Secondly, the systems between banks are not connected. If the customer colludes with the entrusted payer, the funds are transferred to the accounts of other banks and then flow into the illegal housing market and the stock market. We cannot check through the system.

To sum up, I summarize the reasons for the difficulty of inclusive finance business and manufacturing loans: 1. Non-performing inclusive and manufacturing loans will affect the financial statements of banks and have a great impact on listed banks. 2. Banks’ original and relatively reasonable The approval policy does not support large-scale lending to small and micro enterprises and manufacturing. 3. The bank’s grass-roots employees face great risks in carrying out this business.

Therefore, although the State Council has ordered five banks to support manufacturing and small and micro enterprises, and the central bank has used various means to release water many times, in the end, it was found that a large part of the money still went to real estate. In the first half of this year, due to the impact of the epidemic, banks did not dare to lend, and social financing fell sharply.

I think there is a solution to the current predicament.

The first type is that the state establishes a policy bank for manufacturing and small and micro enterprises. Each commercial bank and the central bank hand over a certain percentage of profits to the bank every year, which is specially used for the loan business of manufacturing and small and micro enterprises. Approval policies for lending loans, such as only requiring real business operations, and linking the loan amount with the average of operating expenses. Design appropriate loan products, such as loan terms of more than 5 years, loan interest rates below the benchmark, and flexible repayment methods. Design a comprehensive fund use supervision system to ensure that funds are used for business operations.

Second, the state encourages state-owned commercial banks to carry out loans for manufacturing and small and micro enterprises, and gives banks a certain percentage of subsidies based on the amount of non-performing loans and interest spread losses each year. Banks are required to appropriately relax approval policies and accountability systems for problem loans. Design a comprehensive monitoring system for the use of funds for use by all banks.

I’m just a low-level employee of the bank, and my thoughts are definitely not comprehensive, but this is my true feeling as the most direct executor of national policies. This year, the Yangtze River Delta has been seriously affected by the epidemic, and a large number of enterprises will definitely be short of funds. If they do not lend money to them, the next step will be the arrival of bankruptcy. The government needs to find a way to make market funds have a source, water can flow, water dares to flow, and can quench thirst. Otherwise, the national economy will have to rely on real estate, and the whole people will start speculating in real estate again, and the economy that has finally taken the right path will have to go back.

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It was the first time I spoke on Zhihu. I didn’t expect so much attention. I was really flattered. I have said that I am just a basic bank employee. There are definitely shortcomings in my views. Please bear with me and welcome discussions. In addition, I also saw a lot of comments that were deleted as soon as they were posted. Presumably many of them were criticizing me. I was panicking. I hope everyone can speak in a civilized and rational manner. If there is something that makes everyone uncomfortable, I will bow to everyone.

Source: Zhihu www.zhihu.com

Author: Shushuaihuahua

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Further reading:

The central bank announced the incremental data on the scale of social financing in the first quarter. What information is worth paying attention to?

The financial data in April was released, and the central bank revealed the next step of monetary policy. What details are worth paying attention to?

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