The 25% discount on repayment is actually a 25% discount on debt optimization 100 of our arrears. The 25% discount on debt optimization is the country’s bonus policy to help the people. It is reasonable, legal and compliant. First, let’s understand the logic of 25% off debt optimization. And details: The 2.5% discount debt optimization is actually a personal non-performing asset. Generally, it means that the bank has transferred your creditor's rights to the transferee and no longer has a debt relationship with the bank, so the bank center will no longer pursue your funds and the credit report will be cleared. Zero, the balance is 0, but you need to sign a confidentiality agreement with the bank. You will not have any relationship with this center in the future. After 5 years, you can get a loan from another bank after your credit report is restored.
1. The background of debt optimization at a 25% discount:
Three years after the epidemic, the current domestic economic situation is quite severe. In 2022, 800 million people across the country will be in debt, 420 million people will be unable to repay their loans, overdue credit cards alone will reach more than 200 billion, and the national debt will reach more than 300 trillion. The per capita debt has exceeded 200,000, and 500-600 million people There are no deposits now. More than 70 million people have overdue online loans. There are 7.99 million people subject to execution for breach of trust, commonly known as Lao Lai. The per capita disposable income of residents nationwide is only 36,900 yuan. The lives of ordinary people today are like a snail crawling forward with difficulty carrying a heavy house on its back. If things go on like this, it will inevitably affect the national economy and people's livelihood, causing the foundation of the national economy to collapse. As a result, a revolutionary pilot project came into being.
2. Policy basis for 2.5% discount debt optimization:
On January 7, 2021, the General Office of the China Banking and Insurance Regulatory Commission issued the "Notice on Carrying out the Pilot Work on the Transfer of Non-performing Loans" (Bank and Insurance Regulatory Commission Notice [2012] No. 26), hereinafter referred to as the "Pilot Notice". This notice allows batch transfer of personal non-performing loans.
This notice will officially be implemented in Beijing in March 2022. After more than a year of exploration and practical work, this measure was in line with public sentiment and national conditions. Therefore, the China Banking and Insurance Regulatory Commission issued a document and decided to expand the scope of the transfer pilot
The pilot banks include six large state-owned banks ( See Appendix 1 for details) and twelve national joint-stock banks; the acquisition institutions include the five major financial asset management companies and qualified local asset management companies (local AMCs) and financial asset investment companies (AICs). (This means that a. your debts in the pilot bank can be written off at a 25% discount. b. If you want to become a non-performing asset processing executive office, you must first obtain the approval of the five major AMCs)
Pilot individuals Types of non-performing loans include personal consumption credit loans, credit card overdrafts, and personal business credit loans that have been classified as non-performing (note: personal housing mortgage loans, personal consumption mortgage (pledge) loans, and personal business mortgage loans are not within the scope of the pilot) (meaning That is to say, the 2.5% discount is written off as bubble debt)
The "Pilot Notice" points out that asset management companies can only dispose of personal loans acquired in batches by means of self-collection, restructuring, etc., and it is strictly prohibited. Entrust an agency with a record of violent debt collection, gang-related crimes and other illegal activities to carry out collection work. (Meaning: If the net worth is not clear, it cannot be an executive office for the 2.5% off write-off)
The asset management company shall not transfer the personal loan to the outside world again after acquiring it. Compared with the transfer of corporate loans, the prohibition on the transfer of personal loans by acquiring institutions is a very big difference, which will greatly limit the ways of collection. (This means: If the personal loan debt acquired by the asset management company cannot be recovered, the debt will have to rot in its own hands)
The "Pilot Notice" proposes that "local asset management companies accept batches of Allowing personal non-performing loans to be exempted from geographical restrictions” is also a major breakthrough in the non-performing asset management industry. Local asset management companies can participate in the primary market for bulk transfer of non-performing personal loans, which can be conducted nationwide.
(It means: Although the office is located in Shenzhen, it can accept orders nationwide without geographical restrictions)
Banking Credit Asset Registration and Circulation Center ("Yindeng Center") (It means: Bank Everyone can trust the information released by the center)
2022-07-20 "Notice of the Ministry of Finance on Further Strengthening the Financial Management of State-owned Financial Enterprises" (Caijin [2022] No. 87) should be strengthened Strengthen the write-off of non-performing assets and make full use of existing write-off policies. (Meaning: The 2.5% off write-off is a wise measure that is in line with national conditions, benefits the country and the people, and can solve the current predicament, and must be vigorously promoted)
2022-12-29 "Regulations on Carrying out the Measures of the General Office of the China Banking and Insurance Regulatory Commission" "Notice on the Second Batch of Non-performing Loan Transfer Pilot Work" (Information Letter [2022] No. 1191 of the China Banking and Insurance Regulatory Commission). Based on the scope of the original pilot institutions, this time the Development Bank, Export-Import Bank, Agricultural Development Bank, trust companies, and consumer finance companies will be included in the pilot program. , automobile finance companies, and financial leasing companies are included in the scope of pilot institutions; urban commercial banks and rural small and medium-sized banking institutions registered in Beijing, Hebei, Inner Mongolia, Liaoning, Heilongjiang, Shanghai, Jiangsu, Zhejiang, Henan, Guangdong, and Gansu are included in the pilot institutions scope. (It means: Now rural banks can also do it. In the past, they could only do urban banks. But each initiative basically takes a quarter from release to implementation. So everyone can look forward to it)
2021 -03-01 In the following year following the "Shenzhen Special Economic Zone Personal Bankruptcy Regulations": *** reviewed 1,031 personal bankruptcy applications, 74 cases entered the bankruptcy application review process, 25 bankruptcy procedures were initiated, and 19 personal bankruptcy cases were concluded. The review conditions for personal bankruptcy are extremely stringent, time-consuming, labor-intensive, and energy-intensive. It cannot be promoted on a large scale and cannot solve China's debt problem. (Through parallelism and comparison of the two policies, it was finally shown that the 2.5% discount treatment is more suitable for China’s national conditions and is now being promoted on a large scale)
Third, the significance of the 2.5% discount debt optimization:
2.5% off Debt optimization actually involves the non-performing asset industry, so the question at the beginning is, why don't banks digest these assets internally, but let the national asset management agency handle them at such a low price? ? One thing that is certain is that banks also very much want to dispose of these non-performing assets. Because banks know very well that so-called non-performing assets are only assets that have the possibility of being unable to perform or be liquidated when due. Failure to perform when due does not mean that it has no value, nor does it mean that the debtor will not have liquidity and liquidation after surviving the most difficult period. ability. The reason for selling at a low price is mainly based on the following points:
First, the profit model is limited. As we all know, the main way for banks to make money is to earn interest rates. Therefore, a large amount of cash is required for turnover, and non-performing assets will occupy the bank's special reserves. According to the central bank's regulations, the ratio of special reserves drawn for non-performing assets is: substandard 25, doubtful 50, and loss 100. Therefore, holding non-performing assets will reduce the cash flow in the hands of banks and will incur higher liquidity costs, which is not worth the loss.
Second, time limit. The "Measures for the Management of Bank Debt-Repaired Assets" (Caijin [005] No. 53) issued by the Ministry of Finance stipulates that the disposal cycle of bank debt-repaired assets is two years for real estate and equity, and one year for movable assets. Therefore, if the bank handles the matter on its own, the bank cannot afford the time cost. For example, if you start an auction process, you will be in trouble if the auction fails.
Third, image sets limits. Banks attach great importance to maintaining their own image. Direct collection of debts is not conducive to the bank's safety image. At the same time, banks also lack relevant professional personnel. It is difficult for banks to take tough measures such as legal proceedings to recover many debts.
To sum up the above points, the disposal of non-performing assets, based on comprehensive factors, is not something that banks can dispose of if they want. The non-performing assets should be handed over to professional assets with energy, manpower and experience. Management companies have become the best choice for banks seeking to withdraw funds quickly.
To sum up, the 2.5% discount debt optimization is actually a way to deal with the batch transfer of personal non-performing assets by eliminating debt bubbles and solving the national debt. It is in line with the national conditions, reasonable, legal and compliant!