Under the background that the transformation of economic structure leads to the transformation of financing structure, the decline of credit quality and the increase of spread income pressure, how commercial banks further expand their business boundaries on the basis of traditional credit business and actively enter the field of equity investment needs effective exploration.

The so-called investment-loan linkage is a financing service model with commercial banks as the core and combining equity and creditor's rights. The essence of investment-loan linkage business is a financial innovation based on the relationship between risk and income, which provides financial support for start-ups through the financing service mode of combining equity and creditor's rights.

At present, commercial banks can mainly carry out investment and loan linkage in four ways. In the initial stage of investment-loan linkage business, due to the lack of relevant experience in the field of venture capital, banks should first choose the mode of cooperation with external professional investment institutions, expand customer resources with the help of external forces, and enhance the sharing of information and experience through cooperation with external institutions, and then consider developing investment-loan linkage within the banking group. In this process, loan pricing, third-party organization selection, customer selection and risk control are key links.

Option loan

Option loan means that banks sign an option agreement with enterprises when issuing loans, stipulating that banks can subscribe for a certain number of shares at a certain price in a certain period of time in the future, which will be held by venture capital institutions on their behalf, and stipulate the income sharing, so as to obtain part of the equity premium when venture enterprises are listed or merged.

Previous disadvantages

Generally speaking, priority over inferiority refers to the activities in trust financing projects, which not only absorbs the funds of the public, but also absorbs the funds of institutions or high-risk preferences, and sets up the structure of trust beneficiary rights after priority. When the project loses money, the property of the inferior descendants will be used for the compensation of the priority people, and when it is profitable, the priority people will participate in the dividends according to the pre-agreed proportion.

Improve the tolerance of non-performing loan ratio of small and micro enterprises

The Guiding Opinions of China Banking Regulatory Commission on Financial Services for Small and Micro Enterprises No.2015 issued by China Banking Regulatory Commission requires commercial banks to implement the regulatory requirements for improving the tolerance of non-performing loans of small and micro enterprises while achieving the "three no-less" goals of loans for small and micro enterprises, that is, if the non-performing loan ratio of small and micro enterprises is no more than 2 percentage points (inclusive) higher than the annual target of the whole bank, it will not be regarded as a deduction factor in the internal assessment and evaluation of the host department of small and micro enterprises.

Investment-loan linkage is a financing service model which is mainly based on commercial banks and combines equity and creditor's rights. The essence of investment-loan linkage business is a financial innovation based on the relationship between risk and income, which provides financial support for start-ups through the financing service mode of combining equity and creditor's rights.

On April 20 16, the China Banking Regulatory Commission, the Ministry of Science and Technology and the People's Bank of China jointly issued the Guiding Opinions of the China Banking Regulatory Commission, the Ministry of Science and Technology and the People's Bank of China on Supporting Banking Financial Institutions to Intensify Innovation and Carry out the Pilot Project of Investment and Loan Linkage of Science and Technology Enterprises (hereinafter referred to as the Opinions), which gave guidance to commercial banks in supporting science and technology enterprises through investment and loan linkage.

In fact, before this, China's commercial banks have combined the two financing methods of "investment" and "loan" in various forms to varying degrees, only subject to the stipulation that "commercial banks shall not invest in non-bank financial institutions and enterprises" in the Commercial Bank Law. In the past, the combination of "investment and loan" was tortuous. In this paper, we call it generalized investment-loan linkage, and will

1, traditional credit is difficult to solve the financing problem of start-ups.

The traditional commercial banking system is designed for mature enterprises. The approval of bank credit is based on the enterprise's past profitability, credit record and the adequacy of loan collateral, and its essence is based on the enterprise's past cash flow. Under this model, state-owned enterprises with sufficient collateral and national and government credit endorsements have outstanding advantages. Under the dual nourishment of state-owned capital and commercial capital, state-owned enterprises have developed rapidly and established close ties with commercial banks.

However, with the deepening of economic restructuring, the demand for social financing is changing. The growth rate of traditional industries has slowed down, emerging industries have developed rapidly, and the financing needs of innovative enterprises have been continuously promoted. However, most innovative enterprises are light asset industries, lack of real estate mortgage, have not yet achieved profitability or weak profitability, and face various risks at all times, with high bankruptcy risk. These are far from the traditional credit standards of commercial banks. The "innate disharmony" between them makes it difficult to solve the financing problem of innovative enterprises by using traditional credit.

The traditional credit model of commercial banks is designed for mature enterprises, and their preference for risk is low, which is essentially determined by the nature of the bank's capital source. Different sources of funds with different attributes have different risk tolerance bottom lines, which determines different risk preferences and business behaviors.

Private equity funds, venture capital funds and other types of venture capital funds are all raised by high-net-worth investors, who are willing to take on greater investment risks in order to obtain equity benefits such as future stock options. The main source of funds for bank loans is public deposits, and protecting the interests of depositors is the most basic mode of operation of commercial banks. Because of this, in law, banks are not allowed to hold equity in non-financial enterprises, and the creditor's rights formed by loans take precedence over equity when enterprises go bankrupt and pay off; In terms of supervision, it also restricts the bank's credit operation behavior to protect the rights and interests of depositors.

In addition to the particularity of the source of funds, banks have a low risk appetite. When banks lend to science and technology enterprises, they also face a high degree of mismatch between income and risk, which leads to insufficient motivation of banks. After the bank provides loans, it bears the high risk of enterprise bankruptcy, but the income is only the loan interest rate, generally the benchmark interest rate rises 10%-20%. According to the current one-year loan benchmark interest rate of 4.35%, the highest rate of return of bank loans to innovative enterprises is only about 5.2%. Although we can share part of the equity premium income in the future by signing an agreement with venture capital institutions and attaching option conditions, the return on a share of income is still far lower than that of venture capital institutions. Secondly, according to the current venture capital cycle, it is generally 5-7 years, with long returns and great risks and uncertainties.

Under the current one-year assessment system of banks, it has little impact on the current income of grassroots banks that issue loans. In the case of insufficient incentives, credit and approval personnel are reluctant to approve such loans. The overall enthusiasm of banks to promote this business is not high.

2. Banks themselves are facing the pressure of transformation.

On the one hand, under the background of the overall decline in the operating efficiency of enterprises, the pressure on the deterioration of loan quality in domestic banking industry is increasing, especially for banking institutions in the "hardest hit" of overcapacity, and the pressure on the balance and ratio of non-performing loans to continue to "Shuang Sheng" is even greater. Since 20 12, the balance and non-performing rate of domestic commercial banks have continued to rise. At the end of 20 16, the NPL balance was 1.5 1 trillion yuan, and the NPL ratio was 1.74%. At the same time, the risk of loan concentration has gradually accumulated. In the case of asset shortage, all banks will focus on real estate, state-owned enterprises, central enterprises and local government projects, which may cause further accumulation of risks. In this case, banks must explore credit areas and credit models to reduce credit risk exposure.

On the other hand, interest rate liberalization and financial disintermediation have impacted the traditional credit business.

From the perspective of interest rate marketization, the pace of interest rate marketization reform in China has obviously accelerated since 20 12. 20 15,10 In June, the People's Bank of China decided not to set a floating ceiling on deposit interest rates for commercial banks and rural cooperative financial institutions, which indicated that China's interest rate control had been basically liberalized.

The marketization of interest rate will inevitably make the banking industry experience the process of narrowing the spread and declining the income of traditional deposit and loan business. China's bank spreads began to decline gradually from 20 13. Under the influence of continuous interest rate cuts, loan repricing, and pilot reform of the camp, the spreads and spreads of 20 16 listed banks continued to narrow. At the end of 12, the average net interest margin of commercial banks was 2.22%, down 32BP from the previous year. Over-reliance on spread income will only narrow the development path.

From the perspective of financial disintermediation, China's social financing mode is undergoing obvious changes, and the competition in the financing market is becoming more and more fierce. The obvious trends are international financing of large groups, market financing of large enterprises, private financing of small enterprises and private financing of new enterprises. In addition, securities, insurance, asset management and funds are widely involved in credit activities, and small loans, guarantees, pawns and third-party payments are increasingly acting as financing intermediaries, squeezing traditional bank credit.

In 20 16, the domestic bonds and stocks of non-financial enterprises in China totaled 4.24 trillion yuan, accounting for 23.8% of the increase in social financing scale, which was the highest level in the same period in history. Commercial banks need to adapt to the changes in financing methods, participate more in direct financing, broaden their income sources and increase their comprehensive share in the financing market.

Article 43 of China's "Commercial Bank Law" stipulates: "Commercial banks shall not invest in non-bank financial institutions and enterprises, unless otherwise stipulated by the state." Before 2065438+April 2006, China Development Bank was the only bank with RMB equity investment license in China, and its subsidiary, Guo Kai Finance Co., Ltd., could carry out direct investment business and realize the linkage with the parent company's loan business. Other commercial banks can only carry out investment and loan linkage in a roundabout way.

On April 20 16, China Banking Regulatory Commission, Ministry of Science and Technology and People's Bank of China jointly issued "Guiding Opinions of China Banking Regulatory Commission, Ministry of Science and Technology and People's Bank of China on Supporting Banking Financial Institutions to Intensify Innovation and Carry out Pilot Project of Investment and Loan Linkage of Science and Technology Enterprises", allowing pilot banks to set up subsidiaries with investment functions in China and carry out investment and loan linkage within banking groups specifically targeting science and technology innovative enterprises. At this point, we can summarize several main modes of domestic commercial banks to carry out investment-loan linkage or participate in equity investment.

Mode 1: cooperate with external investment institutions to be responsible for lending and investment respectively.

Commercial banks that have not obtained the qualification to set up domestic investment functional subsidiaries and have not set up overseas investment banking subsidiaries shall cooperate with professional investment institutions and be responsible for lending and investment respectively. Under this model, banks mainly provide financial services such as loan support, consultation and settlement to start-ups through equity pledge or option loans. Banks such as Shanghai Pudong Development Bank, Minsheng Bank and China Everbright Bank all have investment and loan linkage business in this way.

This model can make up for the shortcomings of traditional risk assessment methods in equity investment. With the help of the risk control technology of professional venture capital institutions, project risks can be effectively identified, screened and controlled, helping bank funds enter the enterprise life cycle in advance and cultivating customer stickiness. However, a big drawback of this model is that banks do not really make up loans with investment, that is, they use the potential high returns of equity investment to cover the high risk of lending to venture capital enterprises, but only venture capital institutions make up for the lack of experience of banks in innovative enterprises and reduce the credit risk of enterprises in this field.

Mode 2: Investment and loan linkage with overseas subsidiaries.

Before 2065438+April 2006, CDB Finance was the only bank subsidiary with a direct investment equity license in China. It can not only directly invest, but also form an investment in the target company by participating in the equity restructuring, asset restructuring or debt restructuring of enterprises, and also participate in the equity investment of enterprises through funds.

For most banks without equity investment license, to realize the linkage of investment and loan between parent company and subsidiary company, the linkage of investment and loan can only be realized through domestic and overseas linkage with the help of their overseas investment banking subsidiaries. That is, domestic commercial institutions recommend high-quality customer resources with equity financing needs to overseas subsidiaries for direct investment; Or overseas subsidiaries set up equity investment platforms in China for equity investment. Take the strategic cooperation between China Merchants Bank and SLARZOOM photovoltaic billionaire as an example. SLARZOOM can get a five-year unsecured loan from China Merchants Bank after passing the qualification examination. At the same time, CMB International Finance Co., Ltd., a wholly-owned subsidiary of China Merchants Bank, will acquire a certain proportion of the equity of the enterprise, and the enterprise can also obtain additional loans through the above equity pledge.

The advantage of the model of "parent bank lending and subsidiary investment" is that both sides of the investment and lending are in the form of bank balance sheets, which can realize the internalization of the linkage income of investment and lending, and at the same time, the decision-making chain is relatively short and the communication cost is low. The disadvantage is that the risk is not dispersed. Once the enterprise goes bankrupt, investment and loan may fail at the same time. In addition, because it is often necessary to borrow overseas subsidiaries, at present, only large banks and a few national joint-stock banks are allowed to set up overseas subsidiaries, which is not feasible for most small and medium-sized banks.

Mode 3: Banks invest in industrial funds (stocks and bonds) and issue loans.

This is the way that many domestic banks participate in investment at present. Generally speaking, industrial funds have government background and industry background, with heavy policy orientation and high capital threshold. In this mode, the government, central enterprises or large state-owned enterprises set up industrial investment parent funds, and commercial banks use high-end wealth management or institutional wealth management funds to participate in industrial investment funds to provide equity financing for industrial development. Typical examples are railway development funds and industrial investment funds or industrial development funds set up by local governments.

In the industrial investment fund model, commercial banks usually subscribe for preferred shares and stipulate the withdrawal period and method; Fund sponsors and managers (such as the government or large central enterprises) subscribe for inferior equity and bear the greatest risk of fund projects. This form of financing mode is essentially to attract and incite more funds to enter through less capital investment by sponsors. When the project loses money, the priority investor will get the financial guarantee first, and get the principal under normal circumstances; When the project is profitable, the priority person will participate in the dividend according to the proportion agreed in advance.

It can be seen that in the structured design arrangement that takes precedence over inferiority, the risks borne by commercial banks are controllable and the corresponding benefits are limited. Although commercial banks share the growth of enterprises in form, this model is essentially to undertake finite risk's debt investment, so it is called "real debt with famous shares", which is the main way for many domestic banks to participate in investment at present.

Mode 4: Banks and domestic subsidiaries with investment functions are linked by investment and loan.

2065438+April 2006, China Banking Regulatory Commission, Ministry of Science and Technology and People's Bank of China jointly issued a document, allowing pilot banks to set up investment function subsidiaries. At the same time, the joint investment and loan targets are limited to scientific and technological enterprises, the pilot areas are limited to five national independent innovation demonstration zones, and there are only 10 pilot banks.

In this mode, the subsidiaries of commercial banks and third-party investment institutions form a competitive relationship. Market-oriented equity investment has higher comprehensive requirements for investigators, and its knowledge system is different from that of traditional commercial banks. Relying on the existing talent team of the bank, it is difficult to compete with professional investment companies in project search, value judgment and post-investment management. The correct choice of investment object is the primary link of risk control. Since science and technology enterprises are mostly light asset industries, it is difficult to recover loans. Once the investment-loan linkage fails, the loss will be higher than that of ordinary loans, which may lead to the loss of the banking group.

1, mode selection

In the initial stage of investment-loan linkage business, due to the lack of relevant experience in the field of venture capital, banks can focus on cooperating with external professional investment institutions to expand customer resources, and enhance the sharing of information and experience through cooperation with external institutions, and then consider developing investment-loan linkage within the banking group.

In the process of cooperation with external institutions, in order to ensure the safety of bank funds, loans can be issued to enterprises after venture capital institutions have completed equity investment and the corresponding equity has been registered and transferred according to a certain proportion of the actual investment of venture capital institutions, with the joint and several liability guarantee of the actual controller of the borrower and his spouse as the main guarantee measures. When necessary, all or part of the equity of the enterprise held by the actual controller of the enterprise may be pledged.

In addition, an agreement with rights can be signed in advance. When the agreed conditions are triggered, the bank can obtain additional payment from the enterprise in addition to the normal principal and interest, or has the right to designate a third-party investment institution to make equity investment in the enterprise at the agreed time and according to the agreed conditions.

2. Loan pricing

In terms of loan pricing, in addition to paying attention to loan risk assessment as always, we should also try our best to establish a long-term cooperative relationship between banks and enterprises and share the growth dividend of enterprises. On the basis of referring to the benchmark interest rate level of the People's Bank of China in the same period, the loan interest rate is comprehensively determined in combination with the development prospects of enterprises, equity investment, market average interest rate level and other factors. For enterprises in different regions, different industries and different life cycle stages, different interest rate pricing should be implemented within a certain range.

3, investment and loan linkage customer selection criteria

First of all, enterprise products (services) should belong to the industry scope of high-tech fields supported by the state, such as electronic information technology, biology and new medical technology, high-tech service industry, new energy and energy-saving technology, advanced manufacturing and automation, and high-tech transformation of traditional industries.

Secondly, give priority to enterprises whose shareholders have other comprehensive income. If venture capital has been obtained and preliminary scientific research results have been obtained, the bank can provide financing support such as loans on the basis of risk assessment, and the shareholders of the enterprise provide effective asset mortgage (pledge) guarantee. After the loan expires, if the enterprise is unable to repay it, the shareholders will repay it with other comprehensive income.

Finally, limited consideration is given to enterprises that have obtained the ownership of intellectual property rights that support their main products (services) through independent research and development, transfer, donation, merger and acquisition, and their scientific and technological achievements have certain market transformation ability.

4. Carefully select external cooperation agencies and distribute benefits reasonably.

When selecting external cooperative investment institutions, institutions with successful cooperation experience should be given priority. Other institutions with investment and management capabilities should also be considered, including qualified private equity investment institutions and enterprises with industrial integration capabilities.

In the distribution of benefits, banks should make use of their own advantages to maximize the proportion of income. The participation of bank funds improves the ability of enterprises to resist risks. The reputation of commercial banks, especially the reputation of large commercial banks, provides credit endorsement for enterprises to a certain extent, enhances the confidence of other lending participants, makes it easier for enterprises to obtain financial support from other channels, and improves the probability of their survival.

These are the values of banks in investment and loan linkage. While enjoying higher risk investment, third-party institutions also enjoy the credit appreciation of banks and reduce potential risks. Therefore, the potential value provided by banks should also be reflected in the final distribution of benefits. The basic principles of benefit distribution are the matching of benefit and risk, benefit and workload, and incentive and constraint. One party should not completely become the capital channel or business channel of the other party.

5. Risk control

Different income models of investment and loan should lead to different risk-taking. Loans must be accompanied by repayment arrangements and risk mitigation requirements to avoid introducing more investment risks to banks in the name of investment-loan linkage. Options that can be considered are:

Banks require third-party investment institutions to provide risk mitigation measures. For example, third-party investment institutions provide joint liability guarantee for bank credit; Issue a capital injection commitment letter, promising to inject capital into the target enterprise in the form of new creditor's rights or equity to repay the principal and interest of the bank loan when the enterprise to be granted credit fails to repay the bank credit on schedule; Issue a share repurchase commitment letter, promising to repurchase the shares pledged in the bank at a price not lower than the principal and interest of the bank loan when the enterprise to be granted credit fails to repay the bank credit on schedule.

It should be noted that the equity value of unlisted enterprises fluctuates greatly, so it is necessary to fully and reasonably estimate the equity value pledged in banks. For projects that invest first and then lend, the equity value refers to the valuation level of the latest round of equity financing; For the target enterprise that lends first and then invests, the equity value is usually determined according to the net assets of the target enterprise in the previous year, and the equity pledge rate shall not exceed a certain proportion.

Strengthen capital account supervision. Banks may require third-party investment institutions and enterprises to obtain credit and open basic account or general accounts in banks. Banks will monitor the flow of funds and use them to repay bank loans if necessary. If an enterprise enters the listing channel during the credit period, it must open a special account for raising funds in the bank, and the bank will decide whether to use IPO funds to repay the loan according to the situation; During the credit period, if the enterprise successfully goes public and PE intends to withdraw in whole or in part, the enterprise must repay the bank loan in full, and the bank will take other ways or modes to carry out follow-up cooperation with the enterprise according to the situation. In addition, the Silicon Valley Bank and Nanjing Bank in the United States also indirectly grasp the operation of enterprises by paying salaries to the invested enterprises.

At present, the guidance of narrow investment and loan linkage is more of a framework guidance. Before the implementation of many detailed rules, commercial banks still have some concerns, which are hard to let go. At present, the first areas that need to be clarified or improved include:

Determine the risk weight of investment functional subsidiaries as soon as possible. According to the Opinions, the banking group will implement consolidated management of its subsidiaries, which will directly increase the financing pressure of banks. According to the Measures for Capital Management of Commercial Banks (Trial), the risk weight of equity investment in industrial and commercial enterprises passively held by commercial banks is 400% within the time limit prescribed by law; The risk weight of commercial banks' equity investment in industrial and commercial enterprises due to policy reasons and special approval from the State Council is 400%; The risk weight of commercial banks' investment in other equity of industrial and commercial enterprises is 1250%.

At present, the regulatory authorities have not stipulated the risk weight of equity investment of subsidiaries. Judging from the above terms, it is very likely that banks that are included in the consolidated capital management will directly invest in the equity of subsidiaries, which will occupy the risk capital of the banking group with 400% risk weight, which will have a negative impact on the refinancing pressure of banks.

Timely relax the scope of investment enterprises of investment function subsidiaries, issue business licenses, and improve the enthusiasm of banks. In terms of the positioning of investment functional subsidiaries, the Opinions pointed out that "pilot institutions, as financial investors investing functional subsidiaries, can choose unlisted science and technology enterprises in seed stage, initial stage and growth stage to make equity investment, share investment income and bear corresponding risks. Participate in the operation and management of start-ups as agreed, and make timely investment exit and management exit. " If the investment target of the investment function subsidiary is limited to unlisted science and technology enterprises, the business scope is too narrow.

Science and technology enterprises have the characteristics of high risk, and it is difficult to lead to the withdrawal of equity without listing, which is not conducive to the formation of a good profit model of subsidiaries and the sustainable development of subsidiaries. If the subsidiary is licensed, the investment scope will be moderately relaxed, allowing it to seek more investment space outside the investment and loan linkage business of science and technology enterprises, which will greatly stimulate the enthusiasm of banks to participate, because after all, the risk of investing in functional subsidiaries is ultimately the risk of banking groups.

In the linkage of investment and loan, it is necessary to improve the regulatory risk tolerance of loans. Science and technology enterprises are mostly light asset enterprises, with fast technology update and strong technology substitution. Only a few people really succeed in starting a business. According to the traditional loan risk assessment method of banks, the technology industry is a typical high-risk industry. Although it is mentioned in the opinion that the pilot institutions should determine the compensation mechanism and proportion of the principal of non-performing loans between banks and their investment subsidiaries, government loan risk compensation funds, guarantee companies and insurance companies, I am afraid that the big risk is still on the bank side.

In fact, when solving the financing difficulties of small and micro enterprises, the regulatory authorities have already made concessions on the tolerance of non-performing loans. For the "loan" part of the investment-loan linkage, if we can also improve the tolerance of loan supervision and reflect the differential treatment of risk supervision, it will greatly ease the concerns of banks and improve their enthusiasm.

During the pilot period, it is suggested that the scale and quantity targets should not be set, and the commercial banks should decide the timing and scale of investment and loan linkage by themselves according to the will and ability of each participant, and then gradually promote it after gaining mature experience, so as to avoid the pilot becoming a hard task and improve potential risks.

First, we can consider setting up a pilot professional sub-branch or a sub-branch level professional team to pilot in some areas first, and then promote it in economically developed areas or entrepreneurial gathering areas when the time is ripe. When choosing a pilot professional branch, we should choose a branch with a relatively large customer base of innovative enterprises and explore the linkage business of investment and loan.

Second, strengthen cooperation with peers and cultivate the ecological chain of equity investment. The development prospect of the capital market makes the financial industry fully competitive, and brokers, funds and private investment institutions also focus on developing the investment market, each with its own business expertise. At present, most commercial banks in China lack project start-up efficiency and market opportunities, and the flexibility of risk assessment and disposal methods needs to be strengthened. Therefore, they do not have advantages in the competition of investment targets, so they need to make use of their own advantages to cooperate with the competition in the same industry.

For example, commercial banks have a rich customer base, and have different business relationships or marketing bases with many customers in different industries, different scales and different stages of development, which is a valuable resource to be developed for the investment-loan linkage business. We can build a broad business foundation and cooperation platform, establish close cooperative relations with a number of securities, funds, private equity, industrial financial capital and listed companies, and build an investment bank ecological chain, a capital market product chain and a business start-up mechanism chain with complementary advantages and internal and external interaction, laying the foundation for future investment and loan linkage development.

Third, build an echelon of professionals. The development of investment-loan linkage business involves a wide range of fields, which requires high professional level of front, middle and back office personnel of banks. Banks have a large number of professionals in finance, finance and law, but there is a big gap between their understanding of related industries and their grasp of development trends. Therefore, banks should strengthen the organizational structure and the construction of specialized talent echelon according to the laws and characteristics of specific industries. On the one hand, they should adjust their institutional settings to create a professional and efficient product line; on the other hand, they should combine internal training with external recruitment to form a team of financial experts, legal experts and industry experts.

Fourth, increase the release of power and adjust the assessment standards. Pilot branches are allowed to innovate financing products, such as amount, term, interest rate, guarantee method, repayment method, credit rating and credit granting method, on the basis of fully measuring credit risk and market risk according to the financing needs of local technology enterprises, and provide customers with customized financing products other than standardized financial products.

The return period of equity investment is long and the effect is slow, so the comprehensive contribution of bank customer strategy, not just profit contribution, should be considered in the assessment of this business. The growth cycle of science and technology enterprises is long, and there are many uncertainties and unknowns, which do not match the assessment cycle of banks. Therefore, special evaluation methods should be formulated for such enterprises to match the growth cycle of science and technology enterprises. Reasonably expand the risk tolerance of non-performing loans of science and technology enterprises, formulate special due diligence exemption clauses, and improve the business enthusiasm of branches.