The website of the Financial Regulatory General Administration (FRGA) reported on September 14th that the General Office of the FRGA recently issued the "Notice on Promoting Non-Bank Financial Institutions to Support Large-Scale Equipment Renewal and Consumer Goods Exchange for the Old."

The "Notice" aims to guide non-bank institutions to better leverage their differentiated, specialized, and characteristic financial functions to fully support the active results of large-scale equipment renewal and consumer goods exchange for the old.

Encourage the appropriate reduction of down payment ratios for car loans

When answering reporters' questions about the "Notice," the person in charge of the relevant department of the FRGA said that the "Notice" encourages non-bank institutions to focus on key areas that are crucial for the high-quality development of industries and the needs of people's better lives, based on their professional characteristics and resource endowments. It supports forward-looking, targeted, and independent technological innovation, empowers the development of new quality productive forces, and continuously improves the ability and level to serve the high-quality development of the real economy and Chinese-style modernization.

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Firstly, support financial leasing companies to better meet the actual needs of enterprise equipment renewal by leveraging their own resource endowments. Encourage financial leasing companies to explore supporting the leasing and renewal needs of equipment for technology equipment, medical equipment, resource recycling and dismantling remaking enterprises, and support large equipment manufacturing and use, domestically produced aircraft, new energy ships, first sets of equipment, major technical equipment, integrated circuits, and other equipment.

Secondly, support enterprise group financial companies to provide financing services to group customers. Encourage enterprise group financial companies to leverage their closeness to the group and the industry, closely follow the equipment renewal needs of the group, continuously optimize financial service functions; support qualified enterprise group financial companies to meet the procurement and renewal needs of downstream customers for equipment and consumer goods through buyer's credit, consumer credit, and other methods.

Thirdly, encourage consumer finance companies and auto finance companies to provide related consumer credit and auto financial services. Encourage consumer finance companies to provide financial support for consumer goods exchange for the old. Encourage auto finance companies to increase financial support for municipal transportation enterprises, help promote the application of new energy vehicles; under the premise of being legally compliant and controllable risks, encourage the appropriate reduction of down payment ratios for car loans, reasonably determine car loan terms, credit limits, reduce the threshold for car consumption, etc., and enrich the supply of auto financial products.

Optimize the structure of fund sources

The aforementioned person in charge introduced that in terms of improving the internal management system and mechanism, the "Notice" requires, first, that non-bank institutions optimize their strategies and resource allocation in terms of development strategy and business planning, business direction and structure, resource allocation, and performance assessment.

Secondly, non-bank institutions should actively use information technology means to optimize service processes, increase innovation and research and development efforts under the premise of being legally compliant and controllable risks, and better meet market demands.Non-bank financial institutions must continuously improve their abilities in autonomous customer acquisition and risk control, persistently reduce the level of fees and charges, standardize collection behaviors upon maturity, and strengthen the protection of financial consumer rights.

Furthermore, in terms of increasing regulatory policy support, the aforementioned responsible person stated that the "Notice" clearly stipulates the following: First, optimize the structure of fund sources by supporting eligible non-bank institutions to broaden financing channels and reduce financing costs through issuing green credit (leasing) asset-backed securities and green finance special bonds.

Second, strengthen regulatory positive incentives by providing appropriate incentives in the regulatory rating scoring elements for non-bank institutions that actively implement relevant policies and achieve significant results; for those actively practicing the national inclusive finance policy in related businesses, it is necessary to implement regulatory policies related to non-performing asset tolerance and due diligence exemption, while also strictly guarding against moral hazards.

Third, strengthen industry self-discipline guarantees, where relevant industry associations should coordinate and organize non-bank institutions to actively implement national policies and regulatory requirements, summarize good experiences and typical practices in a timely manner, actively guide positively, maintain a fair competitive market environment, and play the role of industry self-discipline.

Support for non-bank institutions to reasonably expand financing channels

The fourth meeting of the Central Financial and Economic Affairs Commission held on February 23 emphasized that accelerating product renewal is an important measure to promote high-quality development, and it is necessary to encourage and guide a new round of large-scale equipment renewal and consumer goods exchange for the old. On March 8, the State Council issued the "Action Plan for Promoting Large-Scale Equipment Renewal and Consumer Goods Exchange for the Old." Recently, relevant national ministries and commissions and local governments are intensively introducing specific implementation plans, action plans, and supporting measures.

The responsible person stated that the next step for the Financial Regulatory Authority will be to work around the implementation of the "Notice." First, strengthen statistical monitoring by establishing and improving a statistical monitoring system, optimizing the regulatory rating system, including the support of non-bank financial institutions for large-scale equipment renewal and consumer goods exchange for the old in daily monitoring and regulatory rating evaluation work, and encouraging non-bank institutions to actively implement policies in line with their own business characteristics.

Second, encourage experience sharing by guiding financial regulatory bureaus and industry associations to strengthen research, organize communication and exchange among non-bank institutions, summarize and feedback good practices and suggestions in a timely manner, and promote the exchange of good practical experiences.

Third, strengthen policy synergy by continuing to enhance communication and collaboration with the People's Bank of China and other relevant departments, supporting eligible non-bank institutions to reasonably expand financing channels and reduce financing costs, focusing on key areas of industrial high-quality development and people's beautiful life needs, better empowering the development of new quality productive forces, and continuously improving the ability to serve the high-quality development of the real economy.