The central bank clearly defines the risk of "two rights" mortgage loans and emphasizes that the cultivated land red will not be broken.

The relevant person in charge of the People's Bank of China answers questions related to the rural "two rights" mortgage loan pilot project

Recently, the State Council issued the Guiding Opinions on Piloting Mortgage Loans for Rural Contracted Land Management Rights and Farmers 'Housing Property Rights, and decided that the People's Bank of China, together with the Central Agricultural Office and other 11 departments, should organize and carry out mortgage loans for rural contracted land management rights and farmers' housing property rights (hereinafter referred to as "two rights"). The relevant responsible person of the People's Bank of China answered questions from reporters on the relevant questions of the Guiding Opinions.

I. Why should we carry out the "two rights" mortgage loan pilot?

It is a clear task put forward by the Third Plenary Session of the 18th CPC Central Committee to carry out the pilot project of "two rights" mortgage loan in rural areas, which is an important institutional innovation of China's rural land system reform and rural financial system reform. At present, China is in the critical period of transformation from traditional agriculture to modern agriculture. The circulation of rural land management rights has been accelerated obviously. It is a realistic choice to develop moderate scale management. Traditional farmers and family farms and other new agricultural management subjects have realistic needs for revitalizing the stock assets of "two rights". In recent years, under the promotion of local governments and relevant departments, financial institutions have adopted various flexible ways to explore and carry out rural "two-right" mortgage loan business according to local conditions, and some regions have formulated institutional measures and accumulated experience. However, the "two rights" mortgage loan business standards are different, practices are different, lack of perfect laws and regulations and system protection, need to be gradually improved through reform pilot. Prudently and steadily carrying out the pilot project of "two rights" mortgage loan is to meet the realistic needs of agricultural modernization development, moderate scale operation and new urbanization, which is conducive to revitalizing rural land assets, enhancing the efficiency of rural land resources, promoting the innovation of rural financial products and service modes, injecting new vitality into rural finance, improving the availability and convenience of farmers 'loans, and promoting the accelerated development of agricultural modernization.

What are the general principles of the pilot?

First, order according to law. The pilot project should adhere to the law and be carried out within the approved scope first, and then be steadily promoted after the pilot project has accumulated experience. Those involving breakthroughs in relevant legal provisions shall be submitted to the Standing Committee of the National People's Congress for authorization to suspend implementation in pilot areas. The second is voluntary. "Two rights" mortgage loans are voluntarily applied by farmers and other agricultural business entities to ensure that farmers become true insiders, participants and beneficiaries. Third, steady progress. On the premise of safeguarding the legitimate rights and interests of farmers, properly handle the relations between farmers, rural collective economic organizations, financial institutions and the government, and prudently and steadily promote the pilot work. Four is risk control. Adhere to the bottom line that the nature of land ownership will not change, the red line of cultivated land will not break through, and the interests of farmers will not be damaged. We will improve various supporting policies in the pilot areas, prevent, control and resolve risks, and ensure the smooth implementation of the pilot work.

III. What are the main contents of the pilot project?

The pilot project mainly focuses on the following five aspects: First, it endows the "two rights" mortgage financing function. Strengthen the system construction, guide and urge financial institutions to always maintain, realize and develop farmers 'land rights and interests as the starting point and foothold of the reform pilot, implement the mortgage financing function of "two rights", and activate the property attribute of farmers' land usufruct. The second is to promote innovation in rural financial products and service modes. Financial institutions should combine the power attributes of "two rights" and strengthen innovation support in loan interest rate, term, quota, guarantee and risk control. Third, establish collateral disposal mechanism. Financial institutions are allowed to dispose of collateral in various ways according to law and improve collateral disposal measures on the premise of guaranteeing farmers 'contracting rights and basic housing rights. In principle, the transferee shall limit the disposal of collateral for mortgage loans of farmers 'housing property rights within the scope stipulated by relevant laws and regulations and the State Council. Fourth, improve supporting measures. Pilot areas should speed up the registration and issuance of certificates, do a good job in evaluating the value of "two rights", establish and improve rural land property rights trading platforms, establish professional service mechanisms for mortgage, circulation and evaluation of "two rights", and improve rural credit systems. Fifth, strengthen support and coordination. In monetary policy, fiscal policy, regulatory policy, insurance guarantee and other aspects, strengthen support and coordination efforts.

IV. What are the conditions and considerations for the selection of pilot areas?

"Two rights" mortgage loan pilot to the county (city, district) administrative region as a unit. The pilot projects of mortgage loan for management right of contracted land in rural areas are mainly carried out in rural reform pilot areas, modern agricultural demonstration areas and other areas with good circulation of rural land management right; in principle, the pilot projects of mortgage loan for farmers 'housing property rights shall be carried out in the pilot areas of homestead system reform led by the Ministry of Land and Resources. The pilot areas need to meet the conditions of high registration and certification rate, sound rural property rights circulation trading market, strong willingness of farmers to transfer land, good momentum of moderate agricultural scale management, good rural credit environment and sound supporting policies.

V. How to protect farmers 'legitimate rights and interests and prevent risks in the pilot process?

The CPC Central Committee and the State Council have repeatedly stressed that the reform of rural land system should be carried out on the premise of protecting farmers 'legitimate rights and interests and respecting farmers' wishes. In order to protect the legitimate rights and interests of farmers and prevent potential risks of pilot projects, the Opinions put forward four requirements: First, it is clear that "two rights" mortgage loans are voluntarily applied by farmers, family farms, farmers 'cooperatives and other agricultural business entities to ensure that farmers become true insiders, participants and beneficiaries. The second is to emphasize that we should stick to the bottom line that the nature of public ownership of land will not change, the red line of cultivated land will not break through, and the interests of farmers will not be damaged. Third, it is emphasized that we should support moderate scale operation of agriculture and encourage loans to agricultural business entities with moderate scale of operation. Fourthly, the governments of pilot areas are required to adopt interest subsidies, develop government-supported guarantee companies, use rural land property rights trading platforms to provide guarantees, and set up risk compensation funds to establish a "two-right" mortgage loan risk mitigation and compensation mechanism.