Beijing issued financial leasing supervision guidelines, more than half of 11 “red lines” are the first
On April 16, the Beijing Financial Supervision Bureau issued the “Guidelines for the Supervision and Management of Beijing Financial Leasing Companies (Trial)” (hereinafter “Beijing Financial Leasing Guide”).The Beijing regulator made it clear that financial leasing companies “do not issue loans and are entrusted to issue loans”, “do not carry out financial leasing business to customers who obviously lack solvency”, “may not be seized by judicial authorities or have other defects in ownership11 additional lists including “subjects are leased objects”.According to reporter statistics, more than half of the content is the first appearance based on the relevant documents of the China Banking Regulatory Commission.Since its official performance on November 8, 2018, this is the first time that the Beijing Financial Supervision Bureau has issued the regulatory documents for financial leasing companies in its jurisdiction as the daily supervisor of financial leasing companies in the judicial region.The “Beijing Financial Leasing Guide” is divided into seven chapters and sixty-three articles. It requires the average value change range for financial leasing companies “men cloud”, “location list”, regulatory indicators, industry self-discipline and daily supervision and management.According to the “Financial Regulatory Authority Data for 2019” released by the Beijing Financial Supervision Bureau on February 27, there were 216 financial leasing companies in the Beijing area at the end of 2019, with a registered capital of 742.1.7 billion.In 2019, the number of Beijing-based financial leasing companies remained unchanged for 227 for three quarters, but it decreased by 11 at the end of the fourth quarter.Does the auto finance leasing industry without the loan qualification carry out the “instalment down payment, rent first and then buy” consumer installment business, does it violate the “list”?The reporter saw in Article 23 of the “Beijing Financial Leasing Guide” that Beijing ‘s regulators clearly laid down 11 “replacement lists” for the legally statutory bottom line of financial leasing companies in their jurisdictions, specifically including: (1)Absorb or disguise deposits, release loans, be entrusted to issue loans, and other financial services; (2) Financial and financial leasing companies borrow illegal lending and other illegal financial activities in the name of lending and leasing; (3) Do not borrow money from other financial leasing companies or borrow money in disguise;(4) Do not violate the relevant national regulations to provide financing to local governments, local government financing platform companies or require local governments to provide guarantees for leasing projects, promise to repay, etc .; (5) No virtual capital contributions, no fictitious leases, and non-complianceWhere the law stipulates that there is no disciplinary power, the mortgage has been established, and the subject that has been seized by the judicial authority or whose ownership has other flaws is the lease object, and the contract value of the lease object shall not be obviously inconsistent with the actual value;Low-value and high-purchase leases, high-value and low-rent leases, and other transactions that clearly do not conform to market rules; (7) No false propaganda or misleading propaganda, or any fictitious financing lease project to be financed through open channels; (8)) Do not use violent or other illegal means to collect; (9) Do not carry out financial leasing business to customers who obviously lack solvency; (10) Do not use online loan information intermediaries, various local trading venues, asset management institutions and private placementsInvestment funds and other institutions financing or transferring assets; (11) No other violations of relevant regulations.Among them, the Beijing Financial Supervision Bureau made a clear statement to the financial leasing companies in the jurisdiction, “It is not allowed to issue loans compulsorily and entrusted to issue loans and other financial services.”According to reporters, some people have recently focused on brand publicity such as “10% down payment, first rent and then buy”, “spend small money, drive a good car” car finance leasing industry, some consumers believe that there is “fraud” or misleading consumption.As a result, complaints about “buying a car” to “renting a car” are also increasing, and whether there is a “fraud” problem among court employees in some areas has caused trials.However, some experts believe that if the auto finance leasing industry or related parties do not have small loans or other financial licenses related to consumer finance, whether their business model violates the regulatory requirements of “no mandatory investment in loans”, further needschange.At the current stage, the words “down payment” and “instalment” implied in the car rental business slogans of most automobile consumption instalment platforms can be easily replaced with the “instalment car purchase” recognized by consumers.On January 8, 2020, the China Banking and Insurance Regulatory Commission officially issued the Interim Measures for the Supervision and Management of Financial Leasing Companies (Draft for Comment) (hereinafter referred to as the “Draft for Comment”).The reporter noted that 7 of the 11 alternative lists listed in this Beijing Financial Rental Guide are the first appearances based on the “Draft for Comment”.Specifically, it is the “bottom line” requirements of (2), (4), (5), (6), (7), (8), and (9) above.Beijing Financial Leasing ‘s “door intelligence” is set at 200 million, and the leverage ratio remains 8 times. In addition to 11 “Supplementary Lists”, Article 7 of the “Beijing Financial Leasing Guide” clarifies the “door intelligence” requirements for financial leasing companies in the jurisdiction,That is, the registered capital of the financial leasing business is a one-time paid-in currency capital, and the minimum amount is 2 trillion yuan or equivalent freely convertible currency.Article 8 of the “Beijing Financial Leasing Guidelines” imposes requirements on shareholders of financial leasing companies.That is, the main shareholder of the financial leasing company is a corporate legal person, and must meet the “commitment not to transfer the equity of the holder within three years, not to mortgage the shares held or establish a trust, and set it in the company’s articles of association”, etc.9Conditions.Regarding the financial leasing supervision indicators, Articles 27 to 32 of the “Beijing Financial Leasing Guide” have made corresponding requirements.Among them, the leverage ratio part, “Beijing Financial Leasing Guide” requires that financial leasing companies’ risk assets should not exceed 8 times the total net assets.If a financial leasing company develops asset securitization business, it shall issue it on a trading place approved by the State Council or on the inter-bank market, and it shall be issued to qualified investors. The number of investors and the amount of investment shall comply with relevant state regulations.As for the ratio of risk reserve provision, the “Beijing Financial Leasing Guide” requires that financial leasing companies should establish a sound capital management system and implementation process, and establish a sustainable capital replenishment mechanism. In principle, the provision should not be lower than the ending balance of risk assets.5% general risk loss provision.For the business ratio of a single lessee and related parties, the “Beijing Financial Leasing Guide” requires that the financial leasing company’s total financial leasing business balance for a single lessee should not exceed 30% of its net assets; the total financial leasing business balance for a single group must not exceed50% of net assets; the balance of all financial leasing business to one related party shall not exceed 30% of net assets; the balance of all financial leasing business to all related parties shall not exceed 50% of net assets; to a single shareholder and all its related partiesThe financing balance should not exceed the shareholder ‘s capital contribution in the financial leasing company, and should also meet the requirements of this guideline on the single customer relevance.Supervisory bodies in the “takeover” In fact, the requirements for the supervisory bodies in the financial leasing industry and the corresponding regulatory rules are also in a position to adjust the “takeover”.On May 14, 2018, the General Office of the Ministry of Commerce issued the “Notice on Matters Related to the Adjustment of the Management Responsibilities of Financial Leasing Companies, Commercial Factoring Companies and Pawn Shops.”The notice pointed out that on April 20, 2018, the Ministry of Commerce has set the rules for the business operation and supervision of the three types of companies: financial leasing, commercial factoring and pawnshops. The financial leasing industry has bid farewell to the long bulls.The era of regulation.Prior to this, China’s financial leasing industry was jointly established and supervised by the Ministry of Commerce and the State Administration of Taxation.The issuance of the “Consultation Draft” indicates that financial leasing companies formally replaced the supervision system of the financial format.In accordance with the requirements of Chapter 4 “Supervision and Management” of the Draft for Soliciting Opinions, the provincial-level local financial supervision departments (that is, the provincial-level local financial supervision bureaus) are specifically responsible for the supervision and management of the financial leasing companies in the region;Rules for business operations and supervision.In this regard, the Beijing Financial Supervision Bureau has also specified the division of responsibilities in the general section of the “Beijing Rent Guide.”The Beijing Financial Supervision Bureau is the department of daily supervision and management of budget finance leasing companies. It is responsible for reviewing the establishment, change and termination of financial leasing companies in the city, preparing and organizing the implementation of the city ‘s regulatory policies, systems and work arrangements;Incident information notification mechanism, risk early warning mechanism and emergency response plan; carry out various forms of supervision and inspection.The district-level financial authority is responsible for the preliminary verification, daily management, risk prevention and disposal of financial leasing companies in the region.At the same time, the business management department, the Beijing Banking and Insurance Regulatory Bureau and other departments have integrated and coordinated within their respective regulatory authorities.The Beijing Financial Supervisory Authority stated that the “Beijing Financial Leasing Guidelines” shall be implemented from the date of issuance.Banking insurance supervision budget financing leasing companies shall follow the regulations if they have other regulations.Sauna, Ye Wang Huang Xinyu editor Wang Jinyu proofreading Li Ming