On January 5, 2024, the State Administration of Financial Supervision and Administration issued the Administrative Measures for Financial Leasing Companies (Draft for Comments). This issue of "Deep Reading" column invitesMa Tianjiao, postdoctoral fellow at the Bank of China Research InstituteWhat are the key points to pay attention to in the "Measures for the Administration of Financial Leasing Companies (Draft for Comments)".
On January 5, 2024, the State Administration of Financial Supervision and Administration issued the Administrative Measures for Financial Leasing Companies (Consultation Paper) (hereinafter referred to as the "Consultation Paper") to promote the financial leasing industry to return to its origins in leasing business, strict access standards and regulatory requirements, and provide institutional guarantee for the high-quality development of the financial leasing industry.
The management system of financial leasing companies keeps pace with the times, helping enterprises to conduct business in compliance and prevent and resolve risks。In 2014, the former China Banking Regulatory Commission (CBRC) promulgated the Administrative Measures for Financial Leasing Companies (hereinafter referred to as the "Measures"), which played an important role in promoting the healthy development of the financial leasing industry and supporting the equipment financing of small, medium and micro enterprises. With the development of China's economic and financial situation, the financial leasing industry has undergone significant changes, the number of financial leasing companies has increased significantly, the market scale has expanded significantly, and the service field has become more extensive. At the same time, the development of the industry is accompanied by many risks, some companies deviate from the positioning of the main business, blindly develop and expand, dilute the original characteristics of financing and financing, alienate the sale-leaseback business into a quasi-credit business, weak internal control, and disrupt the order of the industry, the Measures can no longer meet the needs of high-quality development and effective supervision of the financial leasing industry. In recent years, regulators have continuously improved the rules and regulations on corporate governance, equity management, related party transaction management, etc., and on the basis of doing a good job of connecting with the existing regulatory laws and regulations, the Consultation Paper has supplemented and improved the relevant contents such as risk management and operating rules in light of the actual situation of the financial leasing industry, so as to create a good external environment for supporting and promoting the high-quality development of the financial leasing industry.
The Consultation Paper supplements and improves relevant content such as risk management and business rules to promote the sound operation of financial leasing companies。The Consultation Paper is revised in six main areas.
One isRevise and improve the main sponsor system。On the basis of the three types of sponsor system established in the "Measures", two types of sponsors will be added: state-owned financial capital investment and operation companies and large overseas manufacturing enterprisesImprove the total assets, operating income and other index standards of the main sponsors, promote shareholders to actively play a supporting role, and earnestly assume shareholder responsibilities;Raise the minimum registered capital requirements for financial leasing companies to enhance risk resilience.
The second isStrengthen hierarchical and categorical supervision of business。According to the difference in the degree of business risk and the required professional ability, further clarify the scope of basic business and special business, cancel non-main business and non-essential business, and strictly supervise business at different levelsAppropriately broaden financing channels and enhance shareholders' liquidity support capabilities.
The third isStrengthen corporate governance supervision。Fully implement the regulatory regulations and institutional requirements on corporate governance, shareholder equity, related party transactions and information disclosure, and clarify the regulatory requirements for party building, "three committees and one layer", shareholder obligations, remuneration management, related party transactions and information disclosure in combination with the organizational form and equity structure of financial leasing companies.
Four areStrengthen capital and risk management。Clarify the regulatory requirements for financial leasing companies in terms of capital adequacy, credit risk, liquidity risk, operational risk and major related-party transactions, optimize and add some regulatory indicators, and clarify regulatory requirements in terms of regulatory ratings, regulatory measures and administrative penalties.
Fifth, yesImprove business operation rules。According to the weak links in the business development and operation and management of the financial leasing industry, the business operation rules will be supplemented and improved, with the focus on increasing the specific operation and management rules for the transfer of financial leasing assets, joint leasing, fixed income investment, financial leasing consulting services, factoring financing, cooperative institution management, employee management, consumer rights and interests protection, guarantee and insurance cooperation, and margin business.
Six isImprove the market exit mechanism。Combined with the practical experience of risk disposal of high-risk non-bank institutions in recent years, the five disposal methods of dissolution, revocation of business licenses, revocation, receivership, and bankruptcy liquidation are clarified, and the liquidation work arrangements are made.
Financial leasing companies should adjust the direction of industry development, strengthen internal governance, and strictly prevent and control risksOne isIn the process of transformation, we will return to the origin of leasing and improve the quality and efficiency of serving the real economy. Based on the essence of financial leasing, it highlights the characteristic function of "financing" and complements the traditional banking businessAbandon the business philosophy of "quasi-credit", standardize the sale and leaseback business, improve the selection criteria of leased items, and enhance the management ability of leased itemsMake full use of the advantages of leased assets in the lessor's balance sheet accounting, financial and tax support, and improvement of operating efficiency, etc., to help lessee reduce the asset-liability ratio and revitalize the precipitated assets. The second isServe the national strategy and increase support for the real economy. Grasp the historical opportunity of domestic large aircraft, and actively promote the leasing business of COMAC C919;Grasp the historical opportunity of accelerating the construction of a maritime power, pay close attention to high-tech ships with high demand and stable industry prospects, such as LNG ships and ro-ro ships, and choose the opportunity to enter the ship leasing market;Grasp the historical opportunity of building a modern industrial system, and actively lay out equipment leasing in the fields of new generation information technology, artificial intelligence, biotechnology, new energy, new materials, and high-end equipment. The third isStrengthen risk management and control capabilities, and firmly guard the bottom line of no systemic risks. Strengthen credit risk analysis capabilities, improve the accuracy of leasing customers' cash flows**, and improve the sensitivity of risk monitoring;Strengthen the management of leased property, enhance the professionalism of the maintenance of leased property, reasonably select relevant insurance products, and diversify risks;Enhance compliance awareness, closely follow up the industry trends and the latest policies and regulations of financial leasing, and strengthen the ability to interpret policies and conduct business in accordance with laws and regulationsImprove the internal risk prevention and early warning system of the enterprise, rely on intelligent risk analysis tools to identify early risk signals and complete early warning, and improve the digital and intelligent transformation of risk identification.
Intern Editor: Li Haochen.