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Private lending intensified "gray financial" urgent need for incorporation of a standardized management

Author: ChenLiuQin From: www.yourpaper.net Posted: 2007-11-19 09:37:51 Read:
Editor's note: In the new situation of the rural economy, the rapid development of the private economy, due to the "three rural" services, services for small and medium-sized enterprises of the financial system is not perfect, and the prevalence of the "credit crunch", "fear loan" phenomenon, some regional and field a serious gap between the supply and demand of credit funds, directly spawned reminder hot Private Finance. In recent years, known as the "gray-financial private lending activities in China's urban and rural areas was getting worse, has generated a lot of negative impact on economic and social development and sequelae, an urgent need to" incorporate "into the regulatory scope of the implementation of standardized management.
Private lending again fiery gray financial scale
Reporter survey found,
Private lending this ancient form of direct financing, still has a huge market in China's rural areas. Especially in the provinces of Hubei, Jiangxi and other "three rural" issues and the private economy in Zhejiang, Jiangsu and other relatively developed areas, subject to the tax reform, financial reform and macro-control factors, once eased the private lending active and large-scale.
Shortly before the survey of 20,294 households conducted by the National Rural fixed observation point system, obtained by private lending loans accounted for 69.41% of the total number of these farmers loans, with an average of 1008.56 yuan. It is estimated that China's farmers a year, up to more than 2000 billion loans obtained from the civil. Zhongnan University financial expert on Huang Xiaowu rural scale of private lending has been much larger than the size of informal credit, and is an annual rate of about 20% rapid growth. A report of the International Fund for Agricultural Development (IFAD) has made it clear that Chinese farmers' loans from private financial markets from formal credit institutions. Rural Investigation Team of Hubei Province last year, 3300 farmers monitoring results show that the peasants year loans more than 50% of total borrowings to friends and family, and neighbors.
The area of ??the private economy is an active area of ??private lending. Interview, some experts say, since 2000, enterprises nationwide direct lending or borrowing amount not less than 100 billion yuan annually. Especially in economically developed coastal cities, temporary lending between private enterprises, individual direct lending, has long been an open secret. Total sources of funds for SMEs in these cities, about 80% from the private sector finance.
Since March last year, the interest and the amount of private lending in Wenzhou are constantly rising. Average monthly interest rate from 8 month climbed, has exceeded 15 the highest even up to 30 . In May last year alone, the amount of private lending occurred had 64.92 million yuan, an increase of 9.64 million yuan over the previous year in December, an increase of nearly 18%. Wenzhou private lending funds in the proportion of the total operating funds for SMEs from 6% in early 2004, rose to more than 10% of the estimated more than 20 billion yuan, the scale of private lending.
Financial blind spots blind spots increased corporate farmers seeking financing thirst for
Hunan Provincial Party School Associate Professor Zhan flower show that, from the 1990s, a large number of rural financial institutions merge, the major commercial banks have to exit from the "diseconomies of scale" field of agricultural credit, and financial institutions services for farmers, the coverage is less than the total number of farmers financial blind spots of 20%, in rural areas, more and more; small and medium enterprises, especially private enterprises, the various financial institutions in the eyes of the "second-class citizens", a blind spot in the city's financial.
It is understood that, since 1998, the four state-owned commercial banks, merge more than 30,000 and below county agencies. The workers and peasants in the four lines of agricultural lending has basically canceled. Agricultural Development Bank as the only agricultural policy bank, due to the narrowness of the localization and function, can not play the normal agro role. As the "three rural" credit "main force" of rural credit cooperatives, limited service outlets, lack of credit, support for agriculture was clearly laboring. Statistics show that farmers get loans from formal financial institutions accounted for the proportion of the total borrowings, in 1985 about 40%, down to only about 20% in recent years. In this case, the private lending would have to be in the development and growth in rural areas.
Financial service outlets of a City of Hunan Province, for example, under the jurisdiction of seven rural counties (cities) in 2004, less than 2000 of 101. Most of the Agricultural Bank of the rest of the 51 sales offices, is equivalent to savings of functions, only to solicit depositors do not lend; Sub-branch weakening functions, a County Branch 5 years only loans to 30 million yuan. In this case, the vast majority of enterprises, farmers are relying on friends and family to chip in to borrow money, and even rely on loan sharks to carry out his business, engaged in the production.
Jiangxi Province since 1998 outlets of more than 2790 financial institutions merge from county region, many villages and towns as a financial blind spots. The locals line, a survey showed that a county finance department annually can only provide credit funds more than 100 million yuan, while the total demand of funds during the same period reached 500 million yuan. Currently, the county's personal borrowings only 15% are being met; corporate lending only 20% credit, can get only 7% of the loan, and is strictly limited purposes. For operating a shortage of funds, the county's 30 companies have 5-7 times a year private lending behavior.
Private Economy in China, 99% of small and medium enterprises, it is difficult to obtain loans from the bank, nearly 80% of SMEs shortage of funds, seeking "capital" thirsty. The Enterprise Investigation Team in Hubei Province, a survey shows that 70% of SMEs to financing difficulties "is selected as the primary difficult," up to 61% recognition rate for long-term or short-term loans from banks. The Bank common ownership and regional discrimination, the first half of 2002, the accumulated 102.5 billion yuan of funds invested by the the Wuhan regional financial institutions, only 2.753 billion yuan to invest in small and medium enterprises, accounting for only 2.69%.
Reporter interview in Wuhan Optical Valley, where many of the private high-tech enterprise complain incessantly, many companies that no alternative funding from the private financial loans difficult. Wuhan Optical Valley, a key high-tech enterprise "Deputy Finance Director Mr. Wang said, early last year, the national macro-control, the bank stopped giving them loans, the company suddenly caught in a cash-strapped state, if not followed up invested enterprises will incur heavy losses. Later, they only have 4000 square meters of plant and equipment pledged to an investment company by more than 10 million of their urgent needs.
Disorderly trading dispute frequent negative effects can not be ignored
Private lending as "gray" trading outside drifted regulatory behavior, it is easy to develop private banking house, and the group will become illegal lending. Ninghai County, Zhejiang Province, the lift will "," standard will be "private financial organization is very active. According to the local CBRC to do the survey, the number of people involved in the various groups will almost 7% of the population of the county. The consequent civil disputes also increased significantly, the Ninghai County Court accepted the last year private lending disputes about 200 cases, accounting for about 30% of all enforcement cases. Wenzhou private lending an employment agency called "silver back," was the will, the former as intermediaries Contact capital supply and demand, the latter invited a number of friends and relatives attended, raise the gold turns cross member using funds mutual aid organizations . Wenzhou told Ryan the Xin Vine District conducted a survey, the results show that 30 administrative villages in the area, the average, each village has a "silver back" at the event.
In Wuhan City, many pawn shops, consignment firm secretly carry sequestration and lending, and other financial activities. The Hankou forward four is called "pawn consignment street. This street there are dozens of pawn shops, commodity swap rows and rows of consignment. Unannounced visits, the reporter found that many engaged in illegal financing behavior. Industry revealed that some accusing him of sequestration and lending amount to millions of dollars, or even up to a thousand million. In fact, many provinces and cities across the country have occurred in pawn shops, swap consignment firm the high interest Lanchu offending issue credit loans of major. The end of June last year, Wenzhou Taishun County seized a big Xichu the illegal pawn lending institutions, more than 90% of its loans are just a-paper borrowings contract or IOU's, there is no formal contract of loan, and there was little collateral , guarantee measures.
The Private Finance indeed promote local economic development, to solve personal, corporate, production, and other much-needed, make up for the lack of financial institutions, credit, to accelerate social capital flows and the use of positive role played Shiyibuque said Professor Chen Liuqin of the Tianjin Academy of Social. But now the private lending behavior has evolved into a mass social hot money behavior, its negative effects are obvious.
First, the impact of social stability. Private lending procedures, lack the necessary management and regulatory support, easily lead to disputes; folk lending involves a wide range of personnel, and occurred in the social grassroots event the debt is not also prone to violence receivables behavior in recent years, civil some of the debt collection company with Mafia.
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