What is the credit model of most banks in China?

this year is to develop the business of small and medium-sized enterprises. I reprinted for you a speech by the chairman of ICBC: Jiang Jianqing: Serving small and medium-sized enterprises is the strategic choice of commercial banks. On December 1-11, 25, the 25 annual meeting of Chinese business leaders and the 2th anniversary celebration of China Entrepreneur magazine were held at the China World Hotel in Beijing, with the theme of "The Crown Ceremony of China Enterprises-Understanding the China Ring in the Global Business Circle". Sina Finance's exclusive graphic and video live broadcast of this meeting. The following is a speech by Jiang Jianqing, Chairman of China Industrial and Commercial Bank Co., Ltd.: Jiang Jianqing: Ladies and gentlemen, I am very glad to have the opportunity to attend the 25 annual meeting of Chinese business leaders and discuss with all the guests the development of China enterprises in the era of globalization. Today, I'd like to talk about some ideas on how to develop small and medium-sized enterprises for your discussion. The first part I talk about is that the development of small and medium-sized enterprises is of great significance to the economic transformation of China. At present, China is in a period of transition in which the economic system and economic model have undergone major changes. In the past, the structure of the country mainly relied on investment to promote economic growth and export growth will surely undergo profound changes. Therefore, in the process of national transformation, the development of small and medium-sized enterprises and the active consumption have very important strategic significance. Statistics show that small and medium-sized enterprises account for 99% of China's total enterprises, creating more than half of GDP, more than 7% of jobs, 6% of exports and more than 4% of taxes. Developing small and medium-sized enterprises is of great practical significance for promoting economic growth, alleviating the pressure of employment and maintaining social stability. There has been a broad understanding of this importance and necessity from macro to micro levels. Actively cultivating and encouraging the development of small and medium-sized enterprises has become the focus of our next five-year plan and even longer-term economic restructuring and macro-control policies. The second part, developing financial services for small and medium-sized enterprises is the strategic choice of China commercial banks. Developed SME finance is the prerequisite for the great development of SMEs. However, it is easier said than done. The financing problem of SMEs in China has always been a worldwide problem, because SMEs are small in scale, lack of funds, poor in risk resistance and stability, and some SMEs have weak management, false statements and even lack of credit. According to the figures of China Commercial Bank, when the credit is out of control, the credit risk of small and medium-sized enterprises even exceeds the overall credit risk by about 1 percentage points. Therefore, when we criticize some banks for hesitating to finance small and medium-sized enterprises, we should also see the reality of the credit risk of small and medium-sized enterprises. We should spend more energy on changing ideas, innovating systems, supporting policies and improving the legal credit environment. I have learned from the business practice of China Industrial and Commercial Bank in recent years that as long as the management and risk control are in place, the credit risk of small and medium-sized enterprises can be controlled and the return is good. Therefore, I think it is important not only to see the credit risks of small and medium-sized enterprises, but also to see that small and medium-sized enterprises can make a big market. Small and medium-sized enterprises will surely become one of the emerging and major credit markets in China and become the main body of independent innovation. It is an inevitable choice for China's commercial banks to develop the finance of small and medium-sized enterprises. First, judging from the changes in China's credit market, the credit market of small and medium-sized enterprises will become an emerging market. At present, the substitution of loans is proceeding rapidly. For example, the working capital loans of commercial banks are being replaced by bills and short-term financing bills. Medium-and long-term projects and personal mortgage loans are being replaced by various asset-backed securities. The traditional credit market for large enterprises and large projects has become saturated, and it is very difficult to increase the balance. In contrast, the demand of SME credit market is in the ascendant. Second, developing SME services has an important impact on the transformation of the growth and profit model of commercial banks. Due to the small scale and high risk of financing for SMEs, it is necessary to pay a high cost to develop financial services for SMEs, but on the other hand, banks have greater initiative and premium space in the price of financial services for SMEs, and interest rates can usually rise. When the business develops to a certain scale and can be managed well, the income will be stable and considerable. At the same time, small and medium-sized enterprises are the main body of social and economic activities, which will inevitably bring huge logistics and capital flow, which implies a larger financial business besides credit. If banks have strong financial innovation ability, they can also get a lot of intermediary business income. Under the condition that the traditional banking business space has been collected, vigorously developing the financial business of small and medium-sized enterprises is a strategic choice for commercial banks to accelerate their transformation and business innovation. Let's talk about how the largest bank in China does small business finance. Industrial and Commercial Bank of China regards the development of financial services for small and medium-sized enterprises as an important strategy to change business model and growth mode, enhance innovation ability and competitiveness, and maintain steady development. In 1993, we set up a business management organization for small and medium-sized enterprises and formulated a series of service policies and measures. After 23, we found through investigation that the scope of small and medium-sized enterprises is too broad, among which financing is the most difficult, and the majority of small and medium-sized enterprises need financing support most. In order to make the object of support concrete and specific, we took the lead in proposing small enterprises as independent management objects in the national financial system. Since then, the credit business of small enterprises has been continuously promoted on a pilot basis and has begun to become an important growth model for bank-wide loans. We are very happy to see that from January to November this year, ICBC has issued loans totaling 162 billion yuan to 26, small enterprises. If we exclude bills, our working capital and project loans amounted to 9.6 billion yuan, an increase of 4.6 billion yuan over the beginning of the year, accounting for 22% of all loans in the bank. The non-performing loan ratio has always remained at a low level within 2.1%, and the liquidity of loans is also good. Our specific methods are as follows: first, we clearly regard small enterprises as independent management objects and establish five principles for business development; first, we adjust the structure and improve the quality; Second, the principle of giving priority to benefits and treating small enterprises of all ownership equally; The third is the principle of regional guidance and highlighting key points; Fourth, the principle of improving efficiency and service; Fifth, the principle of strengthening management and preventing risks. Second, the innovation of financial management service mode of small enterprises has been continuously promoted, and special credit management mode has been formulated to adapt to the diversity and differentiation of small enterprises, including special credit management methods and credit policies. The computer system of small business credit has been developed, and the monitoring measures of small business loans are put forward, such as zero loans, loan return and advanced settlement. It has provided working capital loans and social multi-capital loans, trade financing and outbound business, merger and acquisition loans, etc., and provided one-stop marketing services including settlement, wealth management, cash management, fast payment by banks and customs and taxation departments, online banking, business credit cards, debt management investment banks, information and financial consultants, and actively promoted hundreds of financial products to small business customers, making ICBC a real financial support for small and medium-sized enterprises. The fourth part: Risk control and professional services are the key points to promote the financial services of SMEs. In order to expand and improve the financial services of SMEs, it is necessary to completely change the concept, and we must re-recognize the role of SMEs in the economic and financial markets and its relationship with the development of commercial banks. From a strategic perspective, according to the characteristics of small and medium-sized enterprises' operation and financing, we will carry out all-round innovation in policies, systems, management and products, and provide financial services that are different from those of large enterprises and specially adapt to small and medium-sized enterprises. The ability to control risks is the key for banks to do and expand the business of small and medium-sized enterprises. A good credit portfolio is an important way to prevent risks, which is of great significance for dispersing the credit risks of commercial banks. While developing the financial business of small and medium-sized enterprises, commercial banks should also reflect on the lessons of weak risk management in the past, coordinate the development and strengthening of risk management, forge and enhance risk control while actively operating this field, deeply understand the complexity and diversity of small and medium-sized enterprises in different regions, industries and industries, accurately grasp the constraints on the development of risk characteristics of small and medium-sized enterprises' financial business, distinguish the credit environment in different regions and the management level of branches, and implement different development strategies from point to point. Service innovation and product innovation are effective measures to promote financial services of small and medium-sized enterprises. Therefore, it is necessary to cultivate a professional account manager of small and medium-sized enterprises, establish a professional and systematic personnel training system, improve the incentive and restraint mechanism, and strengthen market analysis in order to better grasp the characteristics of financial needs of small and medium-sized enterprises, innovate in time and respond to the market quickly. The SME Promotion Law has been promulgated and implemented for two years. At present, the state's support and assistance to SMEs are also being implemented. These external environments provide favorable conditions for commercial banks to vigorously develop SME financial services. We also hope that small and medium-sized enterprises will constantly improve themselves, strive for innovation, and avoid over-investment in some industries, industries and products with overcapacity at present. I believe that with the economic development and the gradual improvement of social credit environment, through the concerted efforts of the whole society, the year of brilliant development of small and medium-sized enterprises will come, thank you!