Although the relevant person in charge of Minsheng Trust responded that providing liquidity support to Minsheng Trust this time is a normal financing behavior between financial institutions and belongs to the daily business scope of Xinbao Fund Company. However, this incident has aroused widespread concern from the Credit Insurance Fund Company and the current trust industry.
It has been more than four years since Xinbao Fund Company obtained its business license on June 6, 20 15 and 16, and it has been quite mysterious.
Official website Xinbao Fund Co., Ltd. shows that Xinbao Fund Co., Ltd. is a banking financial institution, which was established by the Trust Industry Association 13 trust companies with a registered capital of11500 million yuan. The original intention of its establishment is to "prevent, resolve and deal with trust risks according to the principle of marketization, and promote the sustainable and healthy development of the trust industry."
An executive of a trust company in North China told the First Financial Reporter that compared with previous years, the amount of funds that trust companies seek liquidity support from Xinbao Fund has been increasing in the past two years. On the one hand, the debt end of trust companies is limited, and from a commercial point of view, the cost of borrowing from Xinbao Fund Company by trust companies is low; On the other hand, due to the economic downturn, 68 trust companies are mixed, some trust companies have weakened their ability to resist risks, and many risk projects have emerged, seeking financial support from Xinbao Fund Company.
How does the Credit Insurance Fund work?
Trust industry has developed rapidly in China, and now it has become the second largest financial sub-industry. At the same time, industry risks are also accumulating, especially a large number of trust funds are invested in basic industries and real estate. There is a mismatch between short-term capital sources and long-term capital utilization, which increases liquidity risk. If individual risks cannot be effectively handled and resolved, it may lead to industry risks and affect the sustainability of trust industry development.
2065438+July 2004, the State Council approved the scheme of setting up trust industry guarantee fund proposed by the regulatory authorities, and agreed to set up a trust fund company as the manager of trust industry guarantee fund. In June 5438+February of the same year, the former CBRC and the Ministry of Finance jointly issued the Measures for the Administration of Trust Industry Guarantee Fund (hereinafter referred to as Document No.50). The former CBRC issued the Measures for the Supervision and Administration of China Trust Industry Guarantee Fund Co., Ltd.
Different from the policy guarantee fund funded by finance, the credit guarantee fund is a kind of private industrial mutual fund. As a fund manager, Xinbao Fund Company was established by Trust Industry Association and 13 trust companies with stable operation.
Specifically, the Credit Insurance Fund set up a fund board as the fund decision-making body, which is responsible for the deliberation and decision-making of major issues. The secretariat of the board of directors of the fund is located in the Trust Industry Association, and the fund directors are produced from trust companies other than the shareholders of the Xinbao Fund Company, thus ensuring the independence of the board of directors.
The relationship between the trust company and the Xinbao Fund Company is mainly in two aspects: the trust company subscribes for the trust guarantee fund and applies for the loan from the guarantee fund under certain conditions; Credit insurance fund companies can provide liquidity support for trust companies with their own funds.
After the trust company subscribes for the trust guarantee fund, Article 19 of Circular No.50 stipulates that the trust guarantee fund company may use the guarantee fund under any of the following circumstances: (1) The trust company needs to be reorganized after implementing the recovery and disposal plan due to insolvency; (2) The trust company has entered bankruptcy proceedings and been reorganized according to law; (3) The trust company is ordered to close down or cancel due to illegal operation; (four) the trust company needs to provide short-term liquidity support because of the difficulty in temporary capital turnover; (five) other circumstances that require the use of the security fund. In addition to the above-mentioned purposes of the trust guarantee fund, the daily use of the trust guarantee fund is limited to low-risk products such as bank deposits, interbank lending, purchase of government bonds, central bank bonds (bills), financial bonds and money market funds.
"The Ministry of Finance and the China Banking and Insurance Regulatory Commission are very strict in the management and use of guarantee funds. In addition to the above (4), the use of the trust guarantee fund shall be approved by the board of directors of the fund. At present, it is rare to use guarantee funds to provide liquidity support for trust companies. The protection fund is the ballast stone of the industry and it is not easy to use. How to rationally use the protection fund on the basis of preventing moral hazard, Xinbao Fund Company is still actively exploring and practicing. " A person close to Xinbao Fund Company told the First Financial Reporter.
As for the self-operated sources of funds of Xinbao Fund Company, they are mainly shareholders' contributions and bank loans. People close to Xinbao Fund Company said that Xinbao Fund Company is a licensed financial institution and can provide daily liquidity support for self-funded trust companies. Help the trust company to prevent and resolve risks by purchasing the inherent property and trust property of the trust company. Credit insurance funds have played a role in preventing the risks of trust industry in advance and resolving them afterwards by carrying out liquidity support and acquisition business. In addition, if there are serious problems in the operation of the trust company, the credit insurance fund company can use the guarantee fund to participate in risk relief.
What is the difference between "the liquidity of trust companies is supported by the self-operated funds of the Credit Insurance Fund Company" and "the liquidity of trust companies is supported by the guarantee funds"? The above-mentioned person close to Xinbao Fund Company said that the self-operated funds of Xinbao Fund Company provide liquidity support in a market-oriented way. Based on the credit ratings of 68 trust companies, the company conducts credit granting, pricing and credit enhancement measures in a market-oriented way.
"If a trust company applies for using a guarantee fund to support liquidity, it must provide full guarantee or mortgage in accordance with the provisions of Circular 50 to ensure the safety of the guarantee fund." The above-mentioned people close to Xinbao Fund Company said that most of the liquidity support funds of trust companies come from the self-operated funds of Xinbao Fund Company.
According to the latest data obtained by China Business News, by the end of the first quarter of 20 19, the balance of daily liquidity support provided by Xinbao Fund Company to trust companies was nearly 52 billion yuan, and the scale of guarantee funds managed by the company was141900 million yuan.
A senior executive of a large trust company told the First Financial Reporter that the economy was not very good in the past two years, some trust companies were more aggressive in exhibition industry, and some risky projects needed "rescue". The method can be inherent funds, shareholders' contributions or funds from Xinbao Fund Company. The purpose of the establishment of Xinbao Fund Company is to help the group to warm up and help each other in the industry, and to provide liquidity support for the trust company with its own funds. Credit insurance fund companies use their own funds to carry out business, but also for their own development needs, shareholders can get dividends.
A senior person in the trust industry told the First Financial Reporter that the self-operated fund support interest rate provided by Xinbao Fund Company to the trust company is about 6%~7%, most of which is within the term of 1 year, which is reflected in the payables in the trust company's table.
The 20 18 annual report of Anxin Trust shows that it borrowed 3.3 billion yuan from Xinbao Fund Company and paid 227 million yuan in interest, with an interest rate close to 7%. A person from another trust company also told reporters that the interest rate of the company seeking liquidity support from Xinbao Fund Company is above 6%.
The person in charge of a large trust company said that the interest rate of Xinbao Fund Company has an internal evaluation process when it borrows from the trust company. Different trust companies have different classification standards and implement the system of "one company, one policy". But on the whole, trust companies with strong funds get lower capital costs than trust companies with weak funds.
It should be noted that in 20 18, the amount of trust companies seeking liquidity support from Xinbao Fund Company was larger than before. For example, the annual report of Shandong Trust in 20 18 shows that its main interest-paying liabilities include short-term loans of 450 million yuan borrowed from the Credit Insurance Fund, accounting for 1 1.05% of the total liabilities of the Group, while the loans in 20 17 are 328 million yuan, accounting for 8.73% of the total liabilities of the Group. In 20 18, Anxin Trust borrowed 3.3 billion yuan from Xinbao Fund Company and 31800,000 yuan in 20 17.
According to the data of china trustee association, the number of trust risk projects at the end of the fourth quarter of 2065438+2008 was 872, 40 more than that at the end of the third quarter, with a scale of 222 1.89 billion yuan, and the risk rate of trust assets was 0.98%. By the end of the first quarter of 20 19, there were 1006 risk projects in the trust industry, with a scale of 283.059 billion yuan, and the risk rate of trust assets was 1.26%, up by 0.28 percentage point compared with the end of the fourth quarter of 20 18.
The charging standard will be more scientific.
Circular No.50 stipulates that the raising rules for subscribing to the Credit Insurance Fund are as follows: the trust company subscribes according to 1% of the net asset balance, and dynamically adjusts the net asset balance at the end of last year before the end of April each year; The fund trust is subscribed according to the new issuance amount of 1%, in which: the investment fund trust for purchasing standardized products is subscribed by the trust company; If it belongs to a financing fund trust, it shall be subscribed by the financier. At the end of the issuance of each fund trust product, it will be paid into the special fund account of the trust company, and the trust company will pay it to the protection fund company quarterly; The newly established property trust shall be subscribed by the trust company at the rate of 5% of the remuneration received by the trust company.
Some people in the trust company can't help asking questions. Trust companies continue to subscribe, which increases the scale of the protection fund. Although there are many entrepreneurial projects involved in the industry, most entrepreneurial project trust companies have the ability to solve them by themselves. Most of the fund balance of the guarantee fund of more than 654.38 billion yuan has not been used, which may become idle resources.
The above-mentioned people close to Xinbao Fund Company said that at the end of 20 14, the scale of trust assets managed by the trust industry was 13.98 trillion yuan, and by the end of the first quarter of 20 19, the scale of trust assets had reached 22.54 trillion yuan; In the same period, the scale of the security fund was 60 billion yuan at the end of 20 15, and reached141900 million yuan at the end of the first quarter of 20 19. It is reasonable for the industry stabilization fund and the industry assets to grow moderately at the same time.
"The Trust and Guarantee Fund is a mutual fund in the industry. No matter the size of the company or the risk, every company should contribute to it. The goal of the industry stabilization fund is to prevent the impact of systemic risks and even prevent them from spilling over to the financial system and economic and social system by dealing with the risks of a single institution. Therefore, every institution is the beneficiary of the guarantee fund system. Of course, there is still room for improvement in the guarantee fund mechanism. Relevant departments are studying and improving the subscription system of guarantee funds, improving the efficiency of use, and studying the reasonable scale of funds and differentiated subscription rates. "A person close to Xinbao Fund Company told the First Financial Reporter.
Deng Zhiyi, former director of the Trust Department of China Banking Regulatory Commission, said on 20 17 that the Credit Insurance Fund is the stabilizer of the industry, and the charging standards are simply divided according to the business, and the standards are unified. In the future, the rate of credit insurance funds will be more scientific, and there will be a regulatory orientation, similar to the deposit reserve of the central bank, and directional adjustment will be taken to optimize the industry structure.
The First Financial Reporter learned that the "1% subscription" of charitable trust, charitable trust and asset securitization has been cancelled.
Does liquidity support prevent the exchange from breaking?
2065438+April 2008, "Guiding Opinions on Regulating Asset Management Business of Financial Institutions" (hereinafter referred to as "New Asset Management Regulations") came into being. Although it has become a science, it is not easy to break communication.
"Xinbao Fund Company borrows money from banks at a lower cost and then lends it to trust companies at an annualized interest rate of 6%-7%. If the trust company uses this money to invest in the project, it can get 8%-9% income. " An industry veteran said, of course, when the funds are tight, the trust company will use this loan as a bridge fund, or it may be used to pay when the trust project is risky.
Circular 50 stipulates that the risk disposal of trust industry should be based on the principle that the seller is responsible and the buyer is responsible, and the decisive role of market mechanism should be played to prevent moral hazard. On the premise that the trust company performs its duties, the loss of value of the trust products shall be borne by the investors themselves.
The "New Regulations on Asset Management" clearly stipulates that when an asset management product cannot be redeemed or redeemed as scheduled, if a financial institution that issues or manages the product raises funds on its own or entrusts other institutions to redeem it, it is regarded as rigid redemption.
"In practice, Xinbao Fund Company has formulated strict and prudent business standards and a negative list of capital use for the liquidity support of trust companies. Trust companies must strictly abide by the contract while obtaining liquidity support. At the same time, guarantee fund companies also have standardized procedures for the term management of liquidity support funds. If it is found that the trust company misappropriates liquidity support funds, the guarantee fund company will implement early recovery of funds or execution of contract liquidated damages. " The above-mentioned person close to Xinbao Fund Company said.
Another analyst said that some trust companies have a wrong understanding of the guarantee fund, thinking that the credit guarantee fund can "cover the bottom" and relax their vigilance against risks. In fact, trust companies themselves should carefully analyze the risks of trust products, strengthen their risk control capabilities, and avoid blindly chasing high-yield and high-risk projects.