Chongqing- On January 20, the press conference of Optimizing Financial Credit to Support Chongqing’s Business Environment was held. The Opinions on the Business Environment of Financial Credit (the Opinions for short) was issued by Chongqing Financial Supervision Bureau and Development and Reform Commission, Chongqing Finance Bureau, Chongqing High People’s Court, the People’s Bank of China, Chongqing Operations Office, Chongqing Banking Regulatory Bureau on December 31, 2019. In this way, Chongqing can further optimize the financial credit business environment, improve the quality and level of financial credit services, enhance the availability and convenience of financial credit services, and promote the healthy development of private, small and micro-enterprises.

The Opinions mainly proceed from the obtain credit indicator, and clarify ten specific measures around the legal rights index, credit information depth index, and credit coverage, and more, to effectively improve the quality and level of financial credit services.

Six specific measures to improve the availability of financial credit services

In terms of the policy, the Opinions will support the development of small and medium-sized corporate banks such as private banks and village and town banks, guide the sinking of bank outlets, and improve the small and microservice network. Also, Chongqing will accelerate the construction of a multi-level financial service system that matches the needs of private enterprises and small and micro enterprises, and encourage financial institutions to increase the credit of private enterprises and small and micro-enterprises. Meanwhile, commercial banks simplify the discount business process and open a fast channel for bill discounting.

For optimizing the process, Chongqing will promote banking financial institutions to use fin-tech to support risk assessment and credit decision-making, and encourage the extensive use of non-repayment renewal loans, revolving loans, installment repayment of principals, and annual review loans to simplify the process of renewal loans.

In terms of reducing credit costs, through the proper management of bank-related service charges for illegal enterprises, clearing unnecessary channels and barriers, and guiding banks to establish differentiated pricing mechanisms for small and micro-enterprise loan interest rates, etc., effectively reduce the burden on enterprises.

To improve financing guarantee support, the Opinions will support private enterprises and small and micro enterprises to use production equipment, raw materials, semi-finished products, products, motor vehicles, and other movable properties as well as accounts receivable, intellectual property rights and other rights to guarantee to finance, and further improve policy financing guarantees system.

In promoting big data services, continue to support big data financial services based on credit information such as the linkage of tax and banks.

To improve the fault tolerance mechanism, Chongqing will promote the implementation of due diligence clauses for small and micro-enterprise loans, adjust the tolerance for non-performing loan assessments, and increase the overall risk level of some of the legal institutions that are actively conducting risk mitigation. The endurance of non-performing loans has been relaxed from 2 percentage points to 3 percentage points, which is no higher than the non-performing loan ratio.

Two specific measures to enhance the convenience of financial credit services

To improve the credit information sharing mechanism, the city will promote the financial institutions in Chongqing to accelerate their access to the credit reporting system of the People's Bank of China, achieve full coverage of the credit information system, and promote the sharing and opening up of credit information related to finance, taxation, market supervision, social security, and customs. In order to solve the problems of asymmetric financial information and inadequate supervision, at the same time, Chongqing will give full play to the functions of public credit platforms and national enterprise credit information publicity systems, carry out the collection and publicity of corporate credit information in accordance with the law, and continue to promote trustworthy joint incentives and untrustworthy joints.

To strengthen the application of credit information, guide financial institutions to launch financing credit services that combine the credit status and ratings of private enterprises and small and micro enterprises, and support credit agencies and credit rating agencies to use relevant information to provide credit to private enterprises and small and micro enterprises products and services to expand the coverage and scale of knowledge value credit loans and business value credit loans.

Two specific measures to maintain fair competition for financial credit business

In the proper trial of commercial disputes, the city will follow legal regulations and financial laws, strengthen trial guidance, unify judgment standards, properly trial various financial dispute cases in accordance with the law, effectively reduce financing costs, and guide and regulate financial behaviors to return to their origins.

To strengthen financial supervision and law enforcement, Chongqing will comprehensively implement the financial supervision responsibility system, explore the implementation of supervision and inspection, and comprehensive law enforcement mechanisms to reduce the impact on the standard operating activities of financial institutions. Full implementation of the financial supervision responsibility system, strict enforcement of law enforcement accountability, and maintaining a fair and competitive financial credit business environment.

For the next step, Chongqing will establish and improve departmental coordination mechanisms to improve the quality of financial credit service. Meanwhile, continuously optimizing the financial credit business environment to explore the establishment of a cross-regional platform for the collection and sharing of public credit information, promote the integration of the social credit system, and increase the breadth and depth of credit information collection. Besides, promoting financial product service innovation and strengthening financial risk prevention and control to further optimize the business environment in Chongqing.