Rural financial risk prevention should keep the "bottom line"

Recently, the phenomenon of illegal fund-raising and the escape of P2P bosses has been reported by the media from time to time. The spirit of the Central Economic work Conference clearly defines the innovation of financial services, the prevention of financial risks, and the need to keep the "bottom line" of security. In recent years, as rural financial workers feel a lot, no matter private lending, or illegal fund-raising behavior, it is the people who eventually suffer losses, and few investors in rural areas finally gain benefits. To investigate the reason, a very important point is that no matter the private financing behavior or the newly established rural financial organizations, some people engage in illegal business activities under the guise of legal operation, the financing interest rate is much higher than that of the banks that organize funds according to the legal interest rate standards, which correspondingly pushes up the financing cost of the refinanciers, and in the end increases the use cost of the final money users, resulting in higher product prices and disturbing the financial order. It is not conducive to price stability and the development of agriculture, rural areas and farmers.

The countryside is a special financial market, and many investors only pay attention to the rate of return promised by the investment object, while neglecting the safety of the investment principal. On the one hand, some hastily established rural financial organizations, lack of experience, weak management ability, interest rate pricing regardless of cost, high cost of capital organization, high sales price of financial products, managers do not pay attention to disorderly operation, leading to financial risks. Illegal fund-raisers have impure motives from the very beginning, burying the foreshadowing of high risks brought by private investment. On the other hand, farmers' customers' awareness of investment and protection of rights is poor, and their awareness of risk is not strong. Farmers will balance the idle capital investment amount is mostly less than 50,000 yuan, the amount is small, too scattered, coupled with poor prevention ability. When I was doing research in the countryside, I heard the most sentence: "there are many people who put their money with him (the illegal financier). The interest rate is 10 times higher than that of the bank, and even if I lose it, it is not myself. My 10,000 yuan is nothing. There are plenty more than me." One day, everyone's thinking collapsed, which is the root cause of farmers being cheated in the wrong direction of investment.

To guard against risks and keep the bottom line is not a problem that can be solved by a single side, but requires the joint efforts of the government, financial regulatory departments, banks and the masses. First, the government, financial regulatory departments to promote services, legal restrictions should be in place. While undertaking the implementation of financial system reform and innovation policies, local governments, in conjunction with regulatory departments, do a good job in publicizing the investment and risk prevention of farmers, and follow the methods of formulating village rules and regulations in rural areas in accordance with corresponding laws and regulations. formulate a series of measures to prevent financial risks and use laws and regulations to restrain non-standard behavior in the rural financial market. The regulatory authorities should borrow the power of rural financial institutions throughout urban and rural areas, through media reports, distributing leaflets, walking villages and lanes, establishing WeChat groups, and QQ groups, combined with the actual cases of illegal fund-raisers running away, educate them, do a good job in risk prevention publicity, and make investors correctly understand that there are great investment risks behind the high return on investment.

Second, banks should adhere to the concept of integrity. While assisting the regulatory authorities to crack down on illegal fund-raising and standardize the rural financial market, banks should strengthen their own operation and management, and closely revolve around the spirit of superior documents in interest rate pricing, according to the market pricing mechanism, customize the financial consumption price that is reasonable, legal and in line with the level of financial consumption, and not in the case of a given interest rate. To increase the so-called deposit treatment fees, in-kind incentives and other behaviors that increase the cost of capital of the organization. With regard to loans, in the case of prescribed enforcement or negotiation of interest rates, the so-called loan insurance and so-called risk margin may not be charged in the name of raising the financing cost of the borrower in disguise, with the consent of the borrower, except for negotiation. An obscure additional condition will reduce the credibility of the bank, and outside influence will confuse a legitimate and compliant bank with other illegal departments that hold and lend at high interest rates.

Third, farmers should invest rationally, cautiously and safeguard their rights in accordance with the law. In order to ensure the safety of investment, when making investment choices, peasant customers should choose to have a "business license" issued by the industrial and commercial administration department and a "financial business operation license" issued by the people's Bank of China. It is best to go to a formal financial institution with strong financial strength and a high reputation to handle deposit (investment) business, even if they participate in private lending without any business qualifications, the investment quota should not be too large. To understand the true use of financing by financiers, do not fall into the strange circle of illegal fund-raising and cause economic losses. In participating in the financing activities of unincorporated financial institutions, it is necessary to standardize the vouchers for the transfer of funds between the parties, clarify the obligations and responsibilities of both borrowers and investors, specify the rate of return and related matters, and ensure that the legitimate rights and interests of investors are protected by law.