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Private lending trend analysis and risk prevention strategies

Author: Anonymous From: www.yourpaper.net Posted: 2010-03-16 04:56:39 Read:
Status and characteristics of private lending

(A) the total size of the growing
It is of Yiyang City, Hunan Province, 50 enterprises, 120 town residents and 120 rural residents questionnaire sample surveys, to the end of 2008, the city's total private lending of about $ 5.4 billion, an increase of 952 million yuan in 2004, an increase of 21.4 %, respectively, of the city's RMB deposit, 8.6% and 9.7% of total loans. Sample enterprises folk borrowed funds balances average household size of 1.224 million yuan, an increase of 38 million compared to 2004, an average annual growth of 11.25%; sample of urban residents in late 2008 through the civil borrowed fund balance per household is 39,400 yuan, ; 13,300 yuan more than in 2004, an average annual increase of 9.8%; the sample rural residents by the end of 2008 civil borrowed funds balances per household is 34,200 yuan, 10,600 yuan more than in 2004, an average annual growth of 7.4%. According to the relevant data, we draw the following conclusions: the city's small and medium enterprises of private lending to 3.429 billion yuan, accounting for 63.5% of the total private lending, urban and rural residents, accounting for about 36.5%; city residents to participate in private lending, slightly higher than the proportion of rural residents; Third, the rapid economic development of the region to participate in private lending is much higher than the proportion of the economy is relatively backward regions.
(B) financing expanding the scope of
The sample survey: SME private lending by about 77% is used to solve the lack of liquidity of the production and operation of approximately 23% for fixed assets put into operation; farmers get private lending in the production and life distribution ratio is 58:42; urban residents Folk approximately 74% of the borrowed funds for investment in business. Yiyang City Folk borrowing to invest, mainly reflected in three major areas. First, the demand in the field of agricultural industrialization. According to the survey of 100 leading corporate funding requirements of $ 8.3 billion, an increase of 24 billion yuan, an increase of 13% over the previous year, bank loans to meet only 50%, Sancheng businesses can not get bank loans, the funding gap of approximately ; $ 3.8 billion. Second, the demand in the field of real estate development. According to the survey, the proportion of funds in the real estate developers in the self-financing to the private lending decreased by approximately 12%. Migrant housing expenses in 2008 compared to 2005, 2006, 2007 were up 20%, 18% and 22%, the private lending by past life emergencies to residential lending. Third, the demand for new industrial fields.
(C) transactions by the dark steering public or semi-public
Although the private lending has legal status, private lending community recognized a certain extent on the role of social and economic life, and gradually evolved into an important means of private owners, individual industrial and commercial households and private enterprises to ease the contradiction between supply and demand of funds, gradually by underground transactions into a semi-open or open.
(D) Borrowing diversified in the form of trend
With the expansion of private capital, professional money lenders and intermediaries have emerged. Some matchmaking for both lenders and borrowers, the payment of the agency fee; Some guarantee companies to provide security for private lending, guarantee fee from; Some companies or individuals on the one hand to borrow funds, on the other hand engage in lending activities, earn spreads , become a veritable private lending intermediaries or professional money lender. In addition, with people growing awareness of the market, have appeared in the form of IOUs turn borrowings. At the same time, in the emergence of a number of rentier community groups. Which include: serving administrative organs, enterprises and institutions of cadres and workers.

Current private financing trends and trends

In recent years, with different forms of the private economy is booming, the continuous improvement of people's awareness of the market, private lending emerged new trends.
(A) private financing alternative
According to the sample point monitoring shows obvious: private financing and formal financial characteristics are substitutes. According to the monitoring of the 10 companies (local key enterprises) data show that access to bank loans in a moderately loose monetary policy in the country from January to June this year, 73.45 million yuan, an increase of 13.5 million yuan, 25.32 million yuan of total private financing of enterprises year-on-year reduction of $ 560 million.
(B) financing nature of equity oriented
According to sample monitoring points show that, in recent years, equity financing to raise funds in the enterprise is widely used in the private financing proportion is increasing year by year from 2006 to 2008, respectively, an increase of 7.3%, 10.2%, 13.6% . Nan County the Xin Xin fisheries limited liability company, the existing stake Member 2358, the scale of corporate finance of $ 6.8 million, an increase of 26% compared to 2006, shares not only able to Poly dividends also been feeding techniques and production, for pin-stop service to bring affordable.
(C) rural the financing tends industrial
Leading enterprises and the rural economy specialized cooperative organizations (associations) as the carrier of the industrialization of agriculture in recent years has been rapid development. According to statistics, Yiyang City, the existing types of rural specialized cooperative organizations of 756, with assets of 3.9 billion yuan, 580 million yuan of the scale of private financing, join a membership of 26.5 million people, led farmers to 390,000, accounting for 39% of the total number of farmers in the city. The survey shows rural credit cooperatives basically meet the demand for Microfinance, the contradiction between supply and demand of funds focused on large capital needs of the business and professional big, 80% of large enterprises and professional has a private lending, some leading enterprises or Association to raise funds by way of partnership, equity and private lending, is closely linked with the development of agricultural industrialization, eased enterprises large amounts of relatively stable long-term funding needs.

(D) borrowing behavior to become rational
With private financing market is becoming more and more mature, the jurisdiction of civil financing behavior more markets and openness, and the rational characteristics has become even more obvious. The first is the financing prices reflect market conditions and pricing based on credit risk period. The second is a more standardized way of financing. According to the monitoring data show that the financing agreement in writing accounted for 86%, guarantee or mortgage financing accounted for 14%, 7% and 4%, respectively, year on year increase. Third, is the interest the interest settlement substantially in accordance with the Bank's approach to the implementation.

Third, regional comparative risk analysis of private lending

(A) part of the flow of funds does not comply with the national industrial policy
Yiyang City is a big agricultural city. After a long time, the relatively weak industrial base, the original plan of the economy of many small cement, small iron and steel, small paper mills, and high pollution, high energy consumption enterprises, through the restructuring of privatized enterprises, long-term lack of regular financial support, the accumulation a lot of risk. Taojiang example: county 16 cubic cellar cement production enterprises, the annual output generally is 8.8-16 tons, because they do not comply with national credit policy and long-term dependence on private lending for maintaining; same situation there Taojiang Sands Steel plant, long-term survival in the market with the slit of the national macro-control, the development of enterprises from small to bigger and completely dependent on private lending, private lending balance reaches the end of 2008 more than 50 million yuan.
(B) the maturity of private enterprises still reach the formal financial credit conditions required
It is understood that, in order to adapt to small private enterprises loans, frequency, urgency, ease the difficult problem of private enterprise loans, in recent years, workers head office, Agricultural Bank have developed a number of policies and measures, but grassroots row specific but it is very difficult to perform. Yiyang City, for example: the city's 19,865 industrial enterprises, 764: large-scale enterprises, the scale of 2566 following small businesses, self-employed households 16811. The survey shows that: Currently SMEs to obtain bank loans to meet the rate of degree less than 40% of enterprises financing through private financing of up to 77.3%, accounting for about 50% of the size of corporate finance. (C) regulate the private lending laws and regulations defined fuzzy
Currently, the laws and regulations of China's "Criminal Law", "Illegal Financial Institutions and Illegal Financial Business outlaw way" of legitimate private lending, illegal fund-raising and the definition of illegal deposits from the public fuzzy. Provided for in Article 176 of the Penal Code, illegal deposits from the public or disguised deposits from the public, disrupting financial order, a term of imprisonment or a fine. The relevant provisions of the July 1998, the State Council promulgated the Decree 247 Illegal Financial Institutions and Illegal Financial banning way to define the behavior of illegal deposits from the public. It is stipulated that the illegal deposits from the public, without the approval of the People's Bank of China to society is not a specific object to absorb funds and issue certificates, commitment to debt service activities within a certain period. 1999 "issued by the Supreme People's Court approved lending practices between citizens and businesses on how to confirm the effectiveness of regulations, lending practices between citizens and non-financial enterprises belong to private lending, as long as the true intention of parties to be considered valid. Above the law on legitimate folk borrowing the definition of illegal fund-raising and illegal deposit-taking behavior is not clear, there is no corresponding judicial interpretation.
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