Negative Effects Of Private Financing And Countermeasures

With the implementation of tight monetary policy, private financing activities are becoming increasingly active, playing a positive role in financing the idle funds and alleviating the contradiction between supply and demand of funds.

However, the blindness and non-standard of private financing also have some negative effects on regional economic restructuring and social stability, mainly in the following aspects: first, the rapid development of private financing is not conducive to economic restructuring.

Some small and medium-sized enterprises are difficult to obtain the support of bank loans. In addition to the impact of objective factors such as bank credit contraction and narrow financing channels, they have a certain relationship with the single product structure, low technology content and incompatible with the current national industrial policy.

The existence and development of private financing provided the soil for its continued existence, thus weakening the adjustment and control of economic restructuring and industrial restructuring, and blinded the economic development.

Two, the legal binding force of private financing behavior is poor, which easily leads to economic disputes.

Because private financing is not standardized, capital owners can not effectively supervise the use of funds. The high interest rate of private financing can easily lead to moral hazard and adverse selection of borrowers, so that funds can not be returned due to maturity, causing disputes over claims and debts, and even serious cases of public security.

Three, the high interest rate of private financing has caused a greater impact on financial institutions, resulting in the increase of financing costs of financial institutions and aggravating the operational risks of financial institutions.

The four is capital extracorporeal circulation, which increases the difficulty of supervision by the people's Bank of China, and weakens the effect of macroeconomic regulation to a certain extent.

In order to further regulate the behavior of private financing and promote its healthy development, the author puts forward the following countermeasures and suggestions: 1., strengthen the supervision of enterprises with private financing behavior.

The people's Bank of China and rural financial institutions, in accordance with relevant financial laws and regulations, strengthen supervision over the use of enterprises' funds, and guide private financing to play an auxiliary and supplementary role in economic and financial affairs.

Functional departments such as industry and commerce, taxation and other departments should strengthen supervision over the state's restricted industries, inject non-governmental financing funds into some key production areas to promote the healthy development of local economy, strictly distinguish between private financing and illegal public deposits, and severely crack down on illegal activities of absorbing public deposits through private financing.

The government and other relevant departments should start with strengthening the construction of financial ecological environment, actively explore the establishment of a credit guarantee system for private economy, solve the difficult problem of corporate mortgage loan guarantee, and open various investment channels for private capital.

2., we will continue to work out and improve a reasonable, scientific and operational pricing system for deposit and loan.

Financial institutions, especially rural credit cooperatives, should seriously analyze the reasons for the active development of private financing. From the perspective of improving their own business benefits, combined with the requirements of market-oriented interest rate reform, we should constantly improve the existing interest rate pricing mechanism for deposit and loan, subdivide the credit market, actively explore and innovate, and attract more funds to reduce private capital.

3., improve financial services and give full play to the role of Finance in boosting the economy.

In view of the rapid development of county economy and insufficient funds, leading to more private financing, we should take measures to prevent capital outflow, expand the strength of local financial institutions, and reduce the contradiction between supply and demand of funds.

First, we should adjust the capital utilization policy of the people's Bank of China, appropriately increase the amount of supporting agriculture and re loan to rural credit cooperatives, and appropriately adjust the use cycle of funds, so that supporting agriculture and refinancing to meet the needs of rural capital and seasonal changes will truly become a "strong agent" to ease the contradiction between supply and demand of rural funds.

Two, we should clarify the functional orientation of China Agricultural Development Bank and form a pattern of clear division of responsibilities between rural policy finance and commercial finance.

Three, we should actively promote the structural reform of state-owned commercial banks, effectively solve the problem of the loan function of county-level branches, the serious imbalance between the ratio of deposits and loans, and the serious shortage of capital supply in counties.

4., strengthen the daily monitoring of private financing.

The people's Bank of China should strengthen the investigation of private financing entities, lending scale and interest rate level in line with local realities, conduct dynamic monitoring of areas with more active financing and collect relevant data of private financing activities regularly, so as to improve the accuracy and timeliness of monitoring.

At the same time, we should strengthen the establishment of the mass monitoring mechanism.

We should give full play to the advantages of the local people in the interests of the land and the people, develop the monitoring force, expand the scope of monitoring, make up for monitoring blind spots, and ensure the accuracy of monitoring information.