Xiao Xiangyun has been doing food wholesale business in Shuangjiang Street, Yunyang, Chongqing for more than 10 years and has become the general agent of a dairy brand in the local area. "For wholesale agents, cash flow is always lacking," said Xiao Xiangyun. "Business is steady and long-lasting, but the payment date for agents to manufacturers is concentrated twice a year. Every time this time comes, they have to prepare a large sum of money in advance."

Recently, the payment date has come again, and Xiao Xiangyun plans to apply for a loan from Fumin Bank. Unexpectedly, less than 3 days after submitting the application, he got a pure credit loan of 2 million yuan.

"Before, I was worried about the lack of collateral or the long loan time. With this successful loan experience, I can feel at ease to expand my business." Xiao Xiangyun said.

Optimizing the structure of market entities and continuously improving business vitality

Countless self-employed owners like Xiao Xiangyun are using bank funds to support honest business and live a down-to-earth life. Fumin Bank, which lent money to Xiao Xiangyun, is a private bank that has been in business for less than a year. As of the end of May, the bank's loan balance had reached 2.418 billion yuan, supporting 164 small and medium-sized enterprises.

The establishment of private banks initiated by qualified private enterprises is a solid step in the comprehensive deepening of banking reform. In March 2014, the China Banking Regulatory Commission announced the first batch of five private bank pilots and officially launched the private bank pilot work. So far, 15 private banks have been approved to open.

It has only been two years since the first private bank opened. For the banking industry with hundreds of years of accumulation, two years is not a big deal, but for the new private banks running on the "cloud", the first two years are enough to achieve an amazing leap from loss to profit. With the help of cloud computing, big data, and artificial intelligence, both WeBank and MyBank, two Internet private banks, have begun to make profits. By the end of 2016, WeBank's net profit reached 401 million yuan, and its online personal small credit revolving loan "WeChat Loan" had issued a total of 198.7 billion yuan in loans, actively granting credit to more than 70 million people; MyBank's net profit was about 255 million yuan, and it had issued a total of 92.8 billion yuan in loans to small and micro enterprises, serving 2.48 million small and micro enterprise customers.

The reform of policy banks has been deepened. In April 2015, the reform plans of three policy banks were approved. The three banks have clearer positioning, more prominent functions, and their ability to serve the real economy has been continuously enhanced.

Xinjiang Lanshan Tunhe Chemical Co., Ltd. is a high-tech chemical new material enterprise. Previously, due to its geographical location, the company's development was slow. In recent years, as coastal petrochemical enterprises have gradually moved to the west, the company has ushered in new development opportunities and urgently needs project construction funds.

Knowing the needs of the enterprise, in 2014, the Xinjiang Branch of the Export-Import Bank of China took the lead in organizing a syndicated loan to support the enterprise in building a 160,000-ton biodegradable engineering plastics integrated project with a loan amount of 1.85 billion yuan. The project was successfully constructed and put into operation in June 2016. In view of the characteristics of product export sales, the Export-Import Bank of China tailored an export credit product of 450 million yuan for the enterprise. As the export sales of products increased year by year, the export credit line was increased by 300 million yuan in June this year.

"Banks and enterprises coexist with each other. It is with the strong support of banks that the enterprise can achieve leapfrog development. In three years, the asset scale has grown from 2 billion yuan to 6 billion yuan, and a complete industrial chain from coal chemical industry, fine chemical industry to new chemical materials has been built. Last year, the export of the company's main products increased by 98% year-on-year, of which 70% were sold overseas." said Lu Shenghua, the company's chief economist. Today, the Silk Road westbound international freight trains are transporting products to Europe in an endless stream.

From street shops to major projects, from "finger-to-finger" lending to syndicated loans, from driving personal consumption to nourishing the local economy... The banking industry changes with the times and needs, continuously optimizes the structure of market entities, enhances business vitality, and serves all aspects of national economy and people's livelihood. This is not only an active change for the banking industry to cope with the trend of financial disintermediation, but also an innovative move to cope with the challenges of the Internet and embrace new finance.

One "reduction" and one "addition" to support supply-side structural reform

In recent years, the shipbuilding industry has encountered a "cold winter". Shandong Weihai Sanjin Shipbuilding was burdened with heavy debts due to the abandonment of ships by shipowners, and by November 2015, it had 1.306 billion yuan in non-performing loans. However, after a comprehensive investigation of the company, the bank found that the company itself had no problems, its technology was relatively advanced, and it had a large number of orders on hand. It was just that it encountered temporary difficulties due to external reasons.

"If the loan is withdrawn at this time, the enterprise will definitely not be able to pass this test, and all the credit funds will be lost. But if we can give them a hand and help them through the difficulties, the enterprise may be able to reorganize and the bank can also recover some losses." Li Xiaoming, president of ICBC Weihai Huancui Branch, said that support is not easy. The shipbuilding industry is an industry with overcapacity. It is difficult to support ship companies that are operating normally, let alone a company that is at risk.

With the support of local government departments and Shandong Banking Regulatory Bureau, ICBC Weihai Huancui Branch successively provided the company with loans of 25 million yuan and 14 million yuan to support the completion of the ships under construction, and helped the company to carry out strategic restructuring, successfully revitalizing 506 million yuan of non-performing loans, and achieving a win-win situation for banks and enterprises.

In May this year, with the approval of Bank of China Financial Asset Investment Co., Ltd., the four major state-owned commercial banks were approved to set up new debt-to-equity swap implementation institutions. In the future, the implementation institutions will carry out market-oriented debt-to-equity swaps for high-quality enterprises with good development prospects but temporary difficulties, and support enterprises to "deleverage". As of mid-May this year, five large banks have signed debt-for-equity swaps with 68 enterprises (projects) with a total contract value of 853.7 billion yuan. Some promising enterprises have reduced their financial burdens through market-oriented debt-for-equity swaps.

After activating the credit resources deposited in inefficient areas, the banking industry will invest more of the freed-up funds in emerging science and technology enterprises, small and micro enterprises and "agriculture, rural areas and farmers" to cultivate new development momentum.

The T3A terminal of Chongqing Airport, which will be put into use in July, will adopt a new radio frequency identification baggage sorting technology. Through this technology, the baggage recognition rate can be increased from 95% to 99.5%, which can save the airport 45 million yuan in costs each year. Previously, this type of technology was monopolized by foreign companies, and this time the whole system was provided by a small Chinese science and technology enterprise, Weibiao Technology.

"Science and technology enterprises have high R&D investment and great working capital pressure. They want to borrow from banks but they are repeatedly blocked because of their light assets and no effective collateral." said Duan Wenbin, general manager of Weibiao Technology. In 2015, the company won a big project but suffered from lack of funds. When the company was short of funds, Chongqing Rural Commercial Bank completed the entire process from credit application to loan issuance within 10 working days, and issued a 5 million yuan guarantee loan to the company, which promptly solved the company's funding "bottleneck" in the rapid development. With the growth of the company, Chongqing Rural Commercial Bank has gradually increased its support for the company.

Open innovation, weaving a global service network

The banking industry is becoming more and more open. Under the principles of fair competition and equal treatment, private capital enters the banking industry through the establishment, subscription of new shares, transfer of equity, mergers and acquisitions, and restructuring. At present, rural small and medium-sized financial institutions have achieved full coverage of private capital investment types and no geographical restrictions, and private capital has entered 103 non-bank financial institutions.

Openness is not only reflected in the domestic market. China's banking industry has opened its doors wider to foreign banks. The entry threshold for foreign banks to operate RMB business has been gradually lowered, and the types of business that can be carried out have been continuously enriched. More and more Chinese banks are also following Chinese enterprises to "go global", taking root and growing overseas. By the end of 2016, Chinese banks had established more than 200 first-level branches overseas. At the same time, in the construction of the "Belt and Road", Chinese banks have improved the layout of institutions in countries along the route, actively connected with the construction of major overseas projects in key areas, and supported infrastructure connectivity, international capacity cooperation and the construction of economic and trade industrial cooperation zones.

The business philosophy of banks has begun to change. Banks have shifted from accompanying "big" to supporting "small". "Before, banks were accompanying big enterprises, but now banks have realized that whoever grasps "small and micro" will grasp the future." Many bank employees sighed. Data shows that by the end of 2016, the balance of loans to small and micro enterprises in China was 26.7 trillion yuan, accounting for 24.07% of the balance of various loans, with a year-on-year growth rate of 13.82%, exceeding the average growth rate of various loans.

Nowadays, banking business is more "green". More and more banks are vigorously promoting green finance. Some banks have already benchmarked international advanced practices and formed a complete green credit evaluation system, which can not only leverage the environmental protection industry with financial leverage, but also achieve commercial sustainability of the business. As of the end of 2016, the green credit balance of 21 major banking institutions reached 7.51 trillion yuan, accounting for 8.8% of all loans.

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