Reasons for Problems in Financial Support in Pubei County

1. Grassroots financial credit channels are seriously blocked, which restricts the release of credit vitality.

(1) The credit mechanism of state-owned commercial banks is blocked.

It is manifested in three aspects: first, the credit approval authority of state-owned commercial banks has been increased, and except for some small loans, grassroots banks have basically lost their credit autonomy. Second, the credit assessment constraints and incentive mechanisms of state-owned commercial banks are seriously unbalanced. Grass-roots financial institutions implement strict lifelong loan responsibility assessment system for credit personnel, but those who have made outstanding contributions to credit lack incentive mechanism. This imbalance of credit management mechanism eventually leads to the "fear of loans" mentality of the heads of grass-roots banks and credit marketers. Third, the state-owned commercial banks "greatly reduce the size" and support the modern enterprise management concept with high technology content and good benefits, which also limits the credit support for small and medium-sized enterprises in the county and "agriculture, rural areas and farmers".

(2) the rural financial supply is insufficient

First, the financial system is in short supply. At present, rural finance has not yet formed a fully competitive and effective rural financial market. The state-owned commercial banks have completely withdrawn from the rural market, and the role of the Agricultural Development Bank is limited. Only one institution, the credit union, is operating. This kind of financial system design is far from meeting the rural financial needs. Second, the source of rural funds is insufficient. Because the management system is not smooth, the payment and settlement system is backward, and the overall service level of credit cooperatives is not high, it has been at a disadvantage in the competition with state-owned commercial banks and postal savings. In addition, due to the heavy historical burden, high proportion of non-performing assets, limited sources of funds and very weak financial strength. Without the support of the central bank's refinancing to support agriculture, it is difficult for credit cooperatives to operate normally. Third, the ability of credit cooperatives to improve service level is limited. Rural credit cooperatives dominate the country, lack competition, lack motivation for financial innovation, and slow improvement of financial service level, which cannot adapt to rural economic development.

2. Poor financial operating environment, the security of credit funds can not be guaranteed.

(1) The credit environment is poor. First, there is a lack of social integrity, and the government, enterprises and individuals are seriously untrustworthy to banks. Some enterprises and individuals maliciously obtain bank credit funds, and default and default are widespread. Second, it is difficult for financial institutions to safeguard their rights according to law. Due to the serious government protectionism, enterprises often adopt an inclusive attitude towards bank debts, and banks often win lawsuits and lose money, resulting in a large number of asset losses. Third, the intermediary service department charges higher fees, which increases the cost of enterprises and banks and limits the credit input to some extent.

(2) Excellent credit carriers are scarce. The overall level of industrial and agricultural development in county economy is low, and its competitiveness is weak, and its credit rating generally fails to meet the loan standard, which is contrary to the business philosophy of state-owned commercial banks supporting national key projects, key industries and excellent customers. The main manifestations are as follows: first, most enterprises in the county have serious losses, chaotic internal management, low scientific and technological content of products, slow development of high-tech industries and low-level redundant construction; Second, the overall level of agricultural development is not high, the development of modern agriculture is very slow, and the loan risk coefficient is high.

(3) Lack of interest risk compensation mechanism for financial institutions to support the county economy. Due to the weak economic foundation of small and medium-sized enterprises and "agriculture, countryside and farmers", the loan risk is very high, so financial institutions naturally exclude them from the door in order to avoid risks. If led by the government, the fiscal and taxation departments set up a benefit and risk compensation mechanism to make appropriate risk compensation for financial institutions that support small and medium-sized enterprises and the "three rural" economy, it will promote the enthusiasm of financial departments to lend. This mechanism can give tax incentives to financial institutions that support small and medium-sized enterprises and the "three rural" economy; In addition, non-performing and sluggish loans arising from financial institutions' support for small and medium-sized enterprises and the "three rural" economy can be written off by the central and local governments according to the principle of sharing a certain proportion.

(4) The role of SME guarantee companies is limited. In order to solve the problem of difficult loans for private enterprises in this county, Binhai County established a small and medium-sized enterprise guarantee company through financial capital injection and enterprise shareholding. However, judging from the operation of the guarantee company, it is not satisfactory. First, the guarantee company is small in scale, with less capital available for guarantee and poor credit authority. Second, the number of guarantee companies is too small to meet the needs of economic development. Third, the internal management system and operation mechanism of the guarantee company are not perfect.

(5) The construction of social credit information system is not perfect. At present, China lacks an effective social credit system, and it is difficult for banks to obtain information about enterprises and individuals. Information asymmetry makes banks worry about corporate and personal loans and restricts the effective growth of credit.

3. Affected by national macro-control policies, credit support is limited. In recent years, financial macro-control has had a great impact on county finance. In order to use limited funds in the cutting edge, commercial banks often transfer funds to big cities and large enterprises, reducing the credit supply to some industries and enterprises.