Recently, the State Administration of Financial Supervision and Administration of China issued a notice on improving the level of financial services for small and micro enterprises by doing a good job in loan renewal work (hereinafter referred to as the "Notice"), effectively improving the quality of financial services for small and micro enterprises. Which companies can enjoy the loan renewal policy? How to further improve the financing service level of banking and financial institutions? The reporter interviewed relevant experts. Optimizing loan service models and increasing support for loan renewals "Simply put, loan renewals refer to borrowers who still have funding needs after the bank loan expires, apply for new loans from the bank before the loan expires, and continue to use the loan funds after review and approval. China attaches great importance to the development of small and medium-sized enterprises, which play an important role in the economic recovery process, but still face significant financial pressure and need to focus on improving their financing accessibility and convenience," said Lou Feipeng, a researcher at China Postal Savings Bank. In the process of providing inclusive financial services for many years, we have found that small and micro enterprises operate flexibly and their financing needs are characterized by small scale, high frequency, and urgent time. Traditional credit policies are often insufficient to fully meet their actual business needs Wang Zhaoqi, General Manager of the Small Enterprise Department of Zhejiang Tailong Commercial Bank, said. In 2014, the former China Banking Regulatory Commission issued a policy for extending loans to small and micro enterprises, clarifying that eligible small and micro enterprises can continue financing without repaying the principal after the loan expires, effectively meeting the continued financing needs of small and micro enterprises. The notice released this time has optimized and adjusted the loan renewal targets. One is to expand the scope of loan renewal from some small and micro enterprises to all small and micro enterprises. After the loan expires, small and micro enterprises with real financing needs and temporary financial difficulties can apply for loan renewal support. The second is to clarify that small and micro enterprise working capital loans, as well as operating loans for small and micro enterprise owners, individual businesses, and farmers, can all be renewed. The third is to temporarily expand the loan renewal policy to medium-sized enterprises, with a tentative term of three years. Continued loan business helps alleviate the financing pressure of small and micro enterprises, reduce their financing costs, and is of great significance in stabilizing their business operations and development expectations, as well as stimulating the vitality of micro entities. The optimization of the loan renewal policy this time will help further enhance the service capabilities of financial institutions and enable more enterprises to receive financial support Zhou Maohua, a macro researcher at the Financial Market Department of Everbright Bank, said. What has attracted much market attention is that medium-sized enterprises have also been included in the loan renewal policy, which means that for medium-sized enterprise working capital loans due before September 30, 2027, if there is a need for fund renewal, commercial banks can refer to the loan renewal policy for small and micro enterprises to handle the renewal. In the process of economic recovery in our country, medium-sized enterprises are also facing financing pressure. The policy of extending loans to medium-sized enterprises in stages and expanding coverage will help better meet their financing needs, better play their positive role, and further stabilize economic growth Lou Feipeng said. Reasonably determining the risk classification of renewal loans and strengthening the risk management of renewal loans. While increasing support for small and medium-sized enterprises to renew loans, regulatory authorities have also considered strengthening risk prevention. The Notice requires banking and financial institutions to reasonably determine the risk classification of renewal loans and strengthen the risk management of renewal loans. Banking and financial institutions should formulate loan renewal management systems, establish business operation procedures, clarify customer access and business authorization standards, and reasonably design and improve supporting documents such as loan contracts and guarantee contracts in accordance with the principle of risk-based approach. We will promptly grasp the business situation of small and micro enterprises and information related to loan renewal assets, to prevent small and micro enterprises from using loan renewal to conceal their true business and financial status, or to use short-term loans for long-term purposes or change the purpose of loans. Efforts should be made to strengthen post loan management for renewal loans, and timely risk assessment and warning should be carried out. Strengthen internal control over loan renewal business, separately identify renewal loans in the credit system, and establish a monitoring and analysis mechanism for renewal business Yang Xiaodong, Director of Risk and Compliance Management Department of China Construction Bank's Inclusive Finance Division, said. Wang Zhaoqi stated that Tailong Bank will strictly control customer access, strengthen loan management, continuously improve the investigation and decision-making abilities of credit personnel, standardize processes, and enhance risk identification capabilities. At the same time, we will improve the standards and tools for hazard management, strengthen asset quality monitoring and analysis, identify abnormal phenomena as early as possible, intervene in management in a timely manner, and continue to promote the high-quality and connotative development of asset business. Zhou Maohua believes that in terms of strengthening internal management and optimizing business processes, financial institutions need to improve their business incentive compatibility mechanisms, consolidate the main responsibilities of each link in the business, and at the same time, use big data and information technology to strengthen pre loan, in loan, and post loan management of loan renewal business. Continuously innovating financial products and improving the level of financing services. Due to the weak risk resistance and high operational uncertainty of small and micro enterprises, in practice, grassroots credit personnel often have the phenomenon of 'reluctance to lend' due to concerns about being held accountable for non-performing loans. To promote the healthy development of inclusive credit business, it is necessary to improve the due diligence exemption mechanism, so that grassroots credit personnel dare to lend and are willing to lend, "said Wang Zhaoqi. The Notice proposes that banking and financial institutions should establish and improve due diligence exemption mechanisms for loans, improve internal systems, standardize work processes, and organically combine tolerance for non-performing loans with performance evaluation and due diligence exemption. This will effectively relax and reduce the burden on credit personnel, protect their enthusiasm, and truly achieve the goal of "exemption for all who should be exempted". Improving the due diligence exemption mechanism helps to protect the legitimate rights and interests of bank employees, further mobilize their enthusiasm, enhance their willingness to promote the development of loan renewal business, and thus better carry out loan renewal related work Lou Feipeng said. How to further improve the financing service level of banking and financial institutions in the future? Yang Xiaodong stated that China Construction Bank will continue to develop loan renewal products, improve the functions of loan renewal products, optimize loan service models based on factors such as the production and operation characteristics, risk status, and repayment ability of small and micro enterprises, reasonably set loan terms, enrich repayment and interest settlement methods, expand the coverage of credit funds, continuously optimize resource allocation, and form a universal credit service system that is compatible with the development of the real economy. Wang Zhaoqi stated that Tailong Bank will continue to improve its financial service level in the traditional financing field. In response to the pain points of difficult and expensive financing for small and micro enterprises, on the one hand, it will actively develop and use various digital tools to solve the problem of information asymmetry for small and micro enterprises through digital risk control measures, and provide more accurate credit services for small and micro enterprises; On the other hand, under the premise of compliance, the guarantee requirements should be fully relaxed, and the credit orientation should shift from weakening collateral guarantees to encouraging the issuance of credit loans, effectively reducing the financing threshold for small and micro enterprises, and enhancing the accessibility of financial services for small and micro enterprises. (New Society)