Introduction: The State Financial Supervision and Administration Bureau responded to netizens’ suggestions on “improving policies such as credit fund supervision and stimulating the vitality of private enterprises” and responded to suggestions such as “introducing a personal bankruptcy law”.
Source | China Government Network On April 25, the China Government Network published the State Administration of Financial Supervision’s response to netizens’ suggestions on “improving credit fund supervision and other policies to stimulate the vitality of private enterprises” and responding to suggestions such as “introducing a personal bankruptcy law” .
The State Administration of Financial Supervision stated that regarding the issue of personal bankruptcy, the State Administration of Financial Supervision will actively cooperate with the legislative body to conduct research and demonstration on whether personal bankruptcy should be legalized, the practical needs and positive effects of legalization, whether the timing is appropriate, and whether supporting conditions are met.
The State Administration of Financial Supervision and Administration responded to netizens’ suggestions on “improving credit fund supervision and other policies to stimulate the vitality of private enterprises.” Netizen “Mr. Ning” from Jinan, Shandong Province said: Currently, private enterprises have difficulties in employment and operation, with orders reduced, financial pressure increasing, and innovation. Insufficient endogenous motivation.
Suggestions: 1. At the legal level, we will improve the joint liability guarantee system and strengthen bank supervision of the use of corporate credit funds.
If the children of private entrepreneurs do not participate in the operation of the enterprise and do not benefit from the enterprise, the bank cannot require them to bear joint and several guarantee liability when lending; otherwise, the children of entrepreneurs need to bear the responsibility.
2. Introduce a personal bankruptcy law to provide good faith debtors with an opportunity for economic regeneration.
The State Administration of Financial Supervision and Administration replied: Hello.
Thank you for your valuable suggestions. The State Administration of Financial Supervision will study them carefully, adopt them in our work, and continuously improve the financial services of private enterprises.
Regarding the problem of difficult and expensive financing for private enterprises, in November 2023, eight departments including the People\’s Bank of China and the State Administration of Financial Supervision issued the \”Notice on Strengthening Financial Support Measures to Help the Development and Growth of the Private Economy\”, which proposed from the aspects of continuing to increase the investment in credit resources, etc. 25 measures.
Next, the State Administration of Financial Supervision will strictly implement the requirements of the notice, guide banking financial institutions to continue to improve financial services for private enterprises, urge banking financial institutions to increase support for first loans and credit loans, strengthen technological empowerment, and develop credit suitable for private enterprises. similar financing products and continued to expand the scale of credit loans.
As for the phenomenon of joint liability guarantees for the children of entrepreneurs reported by you, after investigation and understanding, it is objectively reasonable from the perspective of bank credit management. Solving related problems requires joint efforts from all parties, including vigorously improving the overall integrity level of society and ensuring the effectiveness of private enterprises. Strengthen corporate governance and standardize financial management, and banking financial institutions continue to improve credit and risk control technologies.
Regarding the issue of personal bankruptcy, the State Administration of Financial Supervision will actively cooperate with the legislative body to conduct research and demonstration on issues such as whether personal bankruptcy should be legalized, the actual needs and positive effects of legalization, whether the timing is appropriate, and whether supporting conditions are met.
(State Financial Supervision and Administration Bureau, Inclusive Finance Department)
