On April 6, the China Banking and Insurance Regulatory Commission issued the notice on the key work of comprehensively promoting rural revitalization in banking and insurance services in 2022 (hereinafter referred to as the notice). The main concerns are as follows:
First, clarify the overall goal of agricultural credit growth. According to the data of China Banking and Insurance Regulatory Commission, by the end of 2021, the balance of agriculture related loans in the banking industry was 43.21 trillion yuan, an increase of 11.83% over the beginning of the year; Among them, loans for agriculture, forestry, animal husbandry and fishery were 4.57 trillion yuan, circulation loans for agricultural materials and agricultural and sideline products were 2.71 trillion yuan, and Shenzhen Agricultural Products Group Co.Ltd(000061) processing loans were 1.2 trillion yuan. The balance of inclusive agriculture related loans was 8.88 trillion yuan, an increase of 17.48% over the beginning of the year, 6.19 percentage points higher than the average growth rate of various loans. Among them, the balance of operating loans for farmers with a single credit of less than 5 million yuan was 6.07 trillion yuan, an increase of 16.47% over the beginning of the year. In recent years, the China Banking and Insurance Regulatory Commission has successively issued a number of policy documents on financial services in the field of Rural Revitalization and poverty alleviation, encouraging banks and financial institutions to focus on Inclusive Finance in rural areas, increase credit extension and improve financial service capacity. In 2018, the CBRC issued the notice on doing a good job in financial services for agriculture, rural areas and poverty alleviation in 2018, the notice on doing a good job in banking and insurance services for Rural Revitalization and poverty alleviation in 2019, and the notice on doing a good job in the key work of banking and insurance services in the field of agriculture, rural areas and farmers in 2020, all of which defined the overall goal of agricultural credit growth, It is proposed that on the basis of the continuous growth of the balance of agriculture related loans, the growth rate of inclusive agriculture related loans is generally higher than the average growth rate of various loans, and the growth target of differentiated inclusive agriculture related loans is completed.
Second, guide banks and financial institutions to allocate credit resources to grain producing counties. This year’s No. 1 central document clearly firmly safeguards the two bottom line to ensure national food security and not scale back to poverty. The notice focuses on the implementation of the corresponding requirements, and clearly points out that it is necessary to supervise and urge the continuous growth of the balance of agriculture related loans in major grain producing counties in 13 major grain producing provinces. In terms of specific work, the notice defines the development direction of financial services to support and ensure national food security from three aspects. First, deepen the combination of industry and finance and increase financial investment in rural industries. Including encouraging banks to increase credit support for the construction of modern rural industrial system, and improving the matching between the term of credit products and the agricultural production cycle. Second, improve the innovation level of financial products and grasp new opportunities for rural industrial growth, such as high-standard farmland construction, tackling key agricultural core technologies, increasing soybean and oil production, and ensuring the supply of “vegetable basket” products. Third, ensure the long-term, continuity and sustainability of agriculture related credit, including continuing to provide financing support to enterprises in agriculture related industries seriously affected by the epidemic, avoiding industrial loan restriction, loan withdrawal and loan interruption, and giving “seamless loan renewal” to enterprises in special industries with good market prospects.
Third, encourage banks and financial institutions to explore and promote the digital development of rural finance. Imperfect credit system, lack of credit data and insufficient mortgage guarantee measures in rural areas are the key factors restricting the development of agriculture related finance. With the continuous breakthroughs in key areas such as digital countryside, the digital development of rural finance will become a new direction for the development of agriculture related financial service model. On the premise of legal compliance and controllable risk, banks should make full use of digital technology to improve the efficiency of obtaining customers in batches, improve the level of accurate portraits, effectively improve the financing convenience of agriculture related subjects, and expand the service efficiency and service radius of long tail customers in rural areas. In terms of the construction of credit system, the notice emphasizes the need to actively promote the construction of agricultural credit information data platform and strengthen the sharing of credit data among departments. In terms of mortgage guarantee measures, the notice points out that we should improve the credit enhancement mechanism of agriculture related subjects and the risk sharing compensation mechanism of agriculture related loans, and give better play to the role of the government financing guarantee system; Establish and improve the rural property right circulation market system to provide guarantee for broadening the scope of mortgage and pledge of agriculture related loans. For banks and financial institutions, the circular requires all banks and financial institutions to actively use digital technology to extend the boundary of basic financial services; Make full use of various digital technologies to carry out financial services for agriculture related subjects and improve the efficiency of agriculture related financial services.
