"General Clauses loans" to amend the bills market

The banks and the CBRC April 6 jointly issued a notice on the revised "General Clauses loans" made public for comments. Generally speaking, the revised "loan General Clauses" conforms to China's financial market developments and changes in the trend reflects the management, supervision of the idea of updating and improvement. For paper market, this amendment is particularly great significance lies in its core elements, in 1996 promulgated the "loans General Clauses" in Chapter II of Article 9 will be clear that credit and bills discounted loans, secured loans tied to loans A, and the revised "General Clauses loans" only in accordance with Article 10 of whether the secured loans will be classified as loans and credit loans, loans no longer included in the types of bills discounted. If this change will ultimately remain in the newly revised "loan General Clauses", China's paper market is bound to the direction of a positive and constructive influence.

First of all, is conducive to commercial banks to correctly understand the nature of business paper, rationally define the business risk, in a targeted manner to establish management and control methods. All along, commercial bank credit for the paper business of business or industry financing debate. Credit from the target, the bank acceptance bills of exchange and commercial acceptance of the acceptance of bills of exchange and discount loans the same, are to-business credit, and other financing instruments (including bills discounted), and with the same industry financing business, Financial institutions is the mutual credit and from the target for business, the loans, acceptances and the discount is for enterprises to directly face, is now posted, the buy-back and financing directly with the industry facing commercial banks and from the use of terms, loans, for Discount and directly against the enterprise to meet the short-term financing needs, and is now posted, and repurchase financing with the same industry, regulating the commercial banks is an important means of places remaining funds. Notes on the vague understanding and business disputes, a direct result of the commercial banks in the day-to-day business activities of the loans, mutatis mutandis, to manage and operate instruments business, but in varying degrees, the use of the loans, trade financing and bill business rules, operating on a . Some operators use paper business and credit management of cross-blind spots, which can bypass the calling to which management business, to relax requirements of risk prevention, to avoid the higher level monitoring. Discount Notes will be removed from the types of loans, commercial banks will further clarify bills discounted business loan business and credit risk come from different sources, the former credit risk from Cheng Duiren instead of the discount business, which primarily reflected in the risk of the borrower The credit situation. Therefore, the operating instruments in the process of financing business, risk prevention to focus on the authenticity of the instruments on the identification and credit Cheng Duiren the inspection, this also reflects the bills discounted business and the fundamental difference between the credit business.

Secondly, the paper market is conducive to purifying the environment, development of the market excluding the non-paper, paper market is also true. 2001, the People's Bank issued "on the money order to strengthen the commercial acceptance of the Discount rediscount management notice," the "and posted on the bills discounted business practice is a separate assessment", "no longer included in bills financing the loan-to-deposit financial institutions Proportion of assessment. " It is learnt that the people will then have to consider the discount loans from the loan under draw, but this proposal because contrary to "loan General Clauses", is not formally written into the text. However, as always in the bill financing the loans in the statistics, the objective for commercial banks by increasing the assets of bills to expand the scale of loans, to cover up bad assets and reduce the risk of non-performing loan ratio has provided an opportunity. Bills in the development of non-market factors into bills open secret. Discount notes are not clear loans, reduction of the paper business as a commercial bank short-term capital channel profitability, liquidity management tools, and other essential characteristics.

Third, to resolve the bills discounted loans as a result of conflict management, and further regulate the paper market conduct of operations, the instruments to promote the use and circulation. "General Clauses loans," the overall constraints, the bills discounted business loans should be carried out strictly in accordance with the management, but because of the paper business, in actual operation have some contradictions. For example, tax authorities, construction companies, bookstores, and other enterprises or institutions are not corporate entities, most can not provide the required business licenses, corporate code card, credit card (cards) and other loans to the elements, can not obtain bank loans. However, these enterprises in the day-to-day business activities, also because of the credits and debts relations as a tool for settlement of bills, the bills discounted loans as the management of the circumstances, they obviously can not handle bills discounted. For commercial banks, either to give up business, enterprises lack capital, the banks lost a very good profit opportunities, but also hinder the settlement of tools and instruments as a financing tool for the normal flow of suspected irregularities or to take alternative means of operation , And such operations are often bound by the lack of a standardized system, contains a certain amount of risk. The revised "General Clauses loans" to commercial banks in accordance with the characteristics of their own instruments to manage and operate, whether the discount depends entirely on their own instruments and Cheng Duiren the credit, not only guarantee the financing tools and instruments as a tool for clearing the flow Transfer and promotion of market instruments of a good market order.

Fourthly, the central bank to accurately determine the total credit, and give better play to the effectiveness of monetary policy. In all the instruments business, commercial banks, commercial bills of exchange issued by a direct acceptance is to provide credit support to enterprises, while the discount, is now posted, the rediscount business only under the existing credit financing, and did not provide new credit support , Did not make the original credit expansion. Bills discounted as a loan administration and statistics, the formation of the macro policy of double control. On the one hand, bills discounted, as reflected in the credit of enterprises with the total volume of credit; On the other hand, bills financing and as part of the money market acceptance of monetary policy control. Factoring in itself not a new volume of credit, bills business and the flow of funds in the banking system is inflated the idling of the credit volume, which affects decision-making body on monetary judgement of the situation accurately. In 2003 as an example, the national financial institutions 2.7651 trillion yuan in new loans which, short-term liquidity loans added 949.6 billion yuan, 340.3 billion yuan new financing instruments, or 37.2 percent. The end of the acceptance of the balance of commercial bills of exchange 1.2776 trillion yuan, an increase over last year 541.3 billion yuan, or 42.3 percent. If the acceptance of the whole society to calculate the total amount of credit delivery, significantly higher than calculated by the total number of bills discounted. Therefore, the strengthening of commercial banks acceptance of total control, we can really control the use of the instruments business enterprise credit. At the same time, bills discounted loans not included in business management, further defined the paper market as an important part of the money market position, the central bank through coordination of the paper market, open market operations strategy, and further play a role in the regulation rediscount, the better Play to the effectiveness of monetary policy.

Therefore, bills discounted loans not included in this type of change, "General Clauses loans," the amendment bills for the development of the market is far-reaching significance. However, to really on the paper market development and clean environment to play a catalytic role, but also rely on other means of supporting the use and support, including loans statistical standards and make the appropriate adjustments, the bank will collect the acceptance margin Excluding deposits. At the same time, commercial banks should adjust accordingly timely management ideas, explore the true nature of the instruments business operations, the establishment of an effective internal risk management measures, a fundamental market instruments to promote the healthy and sustained development.