Year: at the second session of the 12th CPPCC National Committee held in 2014

Proposal No: 5092

Proposer: CPPCC National Committee member Justin Yifu Lin

Abstract:

From the perspective of optimizing the construction of the financial system, I propose the following suggestions to relieve the financing difficulties of small and medium-sized enterprises:

1. While strengthening financial supervision, the authorities should gradually ease the access conditions for small and medium-sized financial institutions and to promote their development.

（1）Establish an open, transparent and operational banking access system, gradually ease the access conditions for small financial institutions, and vigorously develop new types of small and medium-sized financial institutions.

（2）Relax restrictions on private lending.

（3）Accelerate the establishment of a regulatory system for small and medium-sized financial institutions.

2. Further improve the existing multi-level banking system for small and micro-sized enterprises and guide different types of banks to provide small and micro-sized enterprises with wide-ranging, differentiated and specialized financial services according to their comparative advantages.

（1）Continue to give full play to the important role of large banks in providing services to small and micro-sized enterprises and stimulate their endogenous motivation to serve them.

（2） Encourage medium-sized joint-stock banks to give full play to their leading role in innovation in small and micro businesses.

（3） Guide small regional banks to build a small and micro-sized enterprise service system with local characteristics.

3. Encourage institutional innovations engaged in coping with the financing difficulties of small and micro enterprises, actively promote their innovative models, and guide regions to take targeted and differentiated measures as well as learn and innovate the financing models of small and micro-sized enterprises based on local conditions.

4. Give full play to the functions of government organization and coordination, optimize the financial ecology for small and micro-sized businesses by integrating credit collection system, improving credit guarantee, and increasing financial and tax support.

（1）Vigorously promote the construction of the credit system for small and micro-sized enterprises, build a perfect information database and promote resource sharing to solve the problem of information asymmetry between financial institutions and enterprises.

（2）Further improve the credit guarantee system of small and micro-sized enterprises, increase their credit level in various ways, and reduce their credit risk in financial institutions.

（3）Introduce targeted fiscal and tax policies to guide financial institutions to increase their service support for small and micro-sized companies.

（4）Build local service institutions for small and micro-sized enterprise, and promote the development of their financing platform.