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Establish a “one body with dual wings” credit guarantee system”, said the representative of the Provincial People’s Congress, Nian Yong’An

TIME:2015-02-02

Our chairman Nian Yong’An raised the view of “establishing a one body with dual wings credit guarantee system” in Henan Province, when he attend the National People’s Congress and Chinese People’s Political Consultative Conference lately.

 Is private fund allowed to participate in micro banks and community banks?
  Mr. Nian propose the government to lift the control over financial licenses for eligible private investors. For instance, private investors should be allowed to initiate the establishment of community banks, P2P finance, micro banks, financial leases, penny funds, and ect financial institutions, as long as they satisfy the requirement of paying more than RMB100 million for three consecutive years, which provide an opportunity for competent and capable entrepreneurs to enter finance industry and develop grassroots finance.

 In addition, he recommend further support to government guided financial guarantee firms and fast track the restructure of guarantee industry owing to the urgent financial needs of SMEs.
   Illegal fund-raising is a bottomless black hole. Chairman Nian Yong’an believe that the only solution is breaking monopolies by establishing “one body with dual wings” credit guarantee system. In specific, the body refers to all the SMEs in Henan province. One of the wing is developing several government guided and private investors involved policy guarantee group through setting up credit guarantee system in the whole province and providing reguarantee for small guarantee firms. Another wing implies the assistance in developing both government and private fund invested commercial guarantee group, which could address the financing problems of SMEs through market mechanism.