www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

US EUROPE AFRICA ASIA 中文
Business / Markets

High loan rates standing in the way of progress

By Zheng Yangpeng (China Daily) Updated: 2014-08-26 07:15

Various signs indicate that instead of loosening credit, China has targeted "lower financing costs" as a priority for the second half of this year.

On Aug 14, the State Council (cabinet) issued a 10-point document that outlines plans to cut corporate financing costs. The document follows a call by Premier Li Keqiang in July to reduce enterprises' funding costs.

China's borrowing costs are among the world's highest, and they have risen rapidly in the past year. In 2013, the average one-year loan rate was 6.15 percent. In Germany, it was 3 percent and in the United States, just 2.25 percent. And this year, the rate has surged 60 percent, according to Zheng Xinli, executive vice-president of the China Center for International Economic Exchange, a government think tank.

Small companies can only dream of borrowing at 6.15 percent. They must pay 15 to 25 percent - if they can get a loan at all.

The predicament vexing policymakers and economists is that China's financial system is not short of cash. On the contrary, it is awash with money. So how is it that in a country with 120 trillion yuan ($19.5 trillion) in M2 money supply, borrowing costs are so high?

The State Council document itself gave quite a good explanation. It said that the problem could be attributed to "macro and micro issues" as well as "issues in the real economy and financial system" and "long-term and short-term factors".

Its 10-point prescription revealed in another way what are the specific problems pushing up the cost of credit. For example, the government is well aware of the "passageway business" - in which trusts and brokerages cooperate with banks to transfer banks' assets off their balance sheets so banks can circumvent regulatory targets such as lending quotas, capital adequacy requirements and loan-to-deposit ratios.

Funds are relayed through layers of institutions, and costs rise with every layer.

Regulatory targets, particularly loan-to-deposit ratios, are driving banks to do whatever it takes to increase their deposit bases at certain times, which means banks have to offer higher yields to depositors. Borrowers usually must deposit certain sums to secure a loan.

Taking into account these problems, the document ordered regulators to adjust their assessment metrics so banks are not forced to undertake such activities. The document also encouraged banks to "broaden their financing channels" through such means as bond issues and asset securitization.

The central government is right in identifying all the problems, but improving the situation on the ground depends on how these guiding principles are implemented. At a recent meeting on how to lower borrowing costs for small businesses, I heard many firsthand stories of corporate borrowers.

Duan Yingbi, a veteran official who has long dedicated himself to poverty alleviation and lending to rural borrowers, said after years of efforts, rural borrowers are finding it easier to get a loan. The acute problem now is the cost. The average rate is about 20 percent.

"We know that the rate is high for farmers, but the problem is the operating expenses for us are high, too: no less than 10 percent. And we have to add the 8 percent guarantee fees. We run a very thin margin. We can't reduce the lending rate further, otherwise we can't survive," he said.

What struck me is that several years ago, when I was a junior journalist, I heard about the same stories. And I heard about the same prescriptions.

Time has passed, but the problems and solutions have barely changed.

The country is not lacking in those wise enough to make suggestions. What it lacks is the ability to put those suggestions into practice.

Duan said the fundamental factor impeding substantial financial reform is excessive concerns about risk.

"The real thinking among regulators is, 'I can barely handle the existing financial institutions, how can I handle more?' " Duan said.

But unless market access is genuinely improved, more players are introduced, more cartels are broken and more direct financing is bolstered, the predicament of high borrowing costs will not be solved.

High loan rates standing in the way of progress High loan rates standing in the way of progress
 Nation's big five banks plan bond sales in order to boost their capital More lenders make RRR cuts 

Hot Topics

Editor's Picks
...
...
主站蜘蛛池模板: 99精品欧美一区二区三区 | 亚洲国产一区二区三区四区五区 | 精品久久久久久影院免费 | 国产成人免费不卡在线观看 | 国产成人综合在线视频 | 中国黄色一级大片 | 日本高清在线不卡 | 日本亚洲欧美国产日韩ay高清 | 久久男人的天堂 | 久久国产影视免费精品 | 欧美成人高清手机在线视频 | 欧美人成人亚洲专区中文字幕 | 亚洲成人美女 | 偷看各类wc女厕嘘在线观看 | 国产在线91精品天天更新 | 中文字幕在线视频网 | 亚洲精品乱无伦码 | 久久999精品| 综合在线播放 | 免费在线观看一区 | 在线观看亚洲成人 | 毛片激情永久免费 | 欧美精品一区二区在线观看播放 | 草草影院第一页yycccom | 亚洲男同可播放videos | 操美女大逼视频 | 欧美怡红院高清在线 | 国产视频高清在线观看 | 国产a久久精品一区二区三区 | 国产亚洲区 | 欧美精品自拍 | 超91在线 | 欧美在线一区二区三区 | 免费观看成年人网站 | 成年人精品视频 | 亚洲精品中文一区不卡 | 国产精品自拍在线观看 | 久久精品国产国产精品四凭 | 亚洲精品一区二区三区www | 亚洲欧美在线视频免费 | 国产成人精品免费久久久久 |