What does loan investment linkage mean, and why is investment loan linkage not pushed

Definition and operation of bank investment and loan linkage:

Understanding of investment-loan linkage: Investment-loan linkage mainly refers to commercial banks and PE (private equity**).

Investment institutions reached strategic cooperation.

Invest in PE.

On the basis of the evaluation and investment of the institution, the commercial bank invests in the enterprise in the mode of "equity + creditor's rights", forming a linkage financing model between equity investment and bank credit. At present, it is mainly used in the credit market for small and medium-sized enterprises. For example, after the establishment of the industry, the bank will follow up with a part of the loan if it makes an equity investment in an enterprise; Or pe**.

Investing in a financial investment in an enterprise can optimize the financial structure of the enterprise, standardize the development of the enterprise, and the bank will follow up a part of the loan in a timely manner. There are also people who make the following two understandings, one of which is that the main body of "investment" is VC (venture capital) and other investment institutions, and the main body of "loan" is bank, and the bank and VC and other in-depth cooperation form linkage. Another understanding is that while commercial banks provide loans to enterprises, they can enjoy equity income and cover credit risks through legal forms.

The role of investment-loan linkage.

PE makes investment decisions based on a thorough familiarity with a business, which can enhance the company's credibility with the bank. Second, PE can determine the project it invests in through the bank's customer information, which solves the problem that PE is difficult to find high-quality projects. At the same time, credit support from banks has reduced the financing costs of small and medium-sized enterprises.

At the same time, it will also improve the financing environment for small and medium-sized enterprises.

And adopt this business model.

Commercial banks not only solve the problem of unequal risks and returns brought by traditional business support enterprises, but also obtain huge profits. Therefore, with the rapid development of the direct financing market and the acceleration of interest rate liberalization, the investment-loan linkage model is increasingly sought after by many banks.

Investment and loan linkage: Mainly for small and medium-sized science and technology enterprises, on the basis of the evaluation of venture capital institutions and equity investment, commercial banks provide financing support for enterprises in the form of creditor's rights, forming a linkage financing model between equity investment and bank credit.

1. Talent problem. Existing bank talent pool.

It is difficult to meet the needs of equity investment business, and at the same time, the bank's remuneration system.

It cannot effectively motivate and retain investment talents. In fact, this factor is still very important, but it is not entirely correct.

2. Funding issues. Some analysts believe that the supervision has made strict restrictions on the funds** that banks can invest with equity balances, making it difficult for banks to increase leverage through debt funds to expand returns.

3. Business model.

Some analysts believe that there is a conflict of interest between equity investment and credit delivery, and the same bank avoids the credit business while promoting investment business.

impact. 4. The investment subsidiary has not been approved so far. Some pilot banks have submitted relevant materials for the establishment of investment subsidiaries in accordance with the requirements of the "Guiding Opinions", and the relevant application materials have been submitted for approval by the China Banking Regulatory Commission.

As a result, the professional investment-loan linkage business has not been substantially carried out.

Summary. Investment-loan linkage business refers to the cooperation model between banks and investment institutions to support the development of investment projects through borrowed funds. The main purpose of this business is to achieve an organic combination between investment and loans through the financing of funds, and to promote economic growth and development.

This model can help enterprises and individuals obtain more financing channels, and also provide more investment opportunities for investment institutions. The advantages of investment-loan linkage business are that it can improve the efficiency of capital utilization, reduce financing costs, and promote the optimization and upgrading of economic structure. In this way, we hope to better meet the market demand and promote the prosperity and development of the economy.

Investment-loan linkage business refers to the cooperation model between banks and investment institutions to support the development of investment projects through borrowing funds. The main purpose of this business is to promote economic growth and development through the financing of funds and the organic combination of investment and loans. This model can help enterprises and individuals obtain more financing channels, and also provide more rough investment opportunities for investment institutions.

The advantages of investment-loan linkage business are that it can improve the efficiency of capital utilization, reduce financing costs, and promote the optimization and upgrading of economic structure. In this way, we hope to better meet the market demand and promote the prosperity and development of the economy.

I'm still a little confused, can you be more detailed?

Investment-loan linkage business refers to the cooperation between banks and investment institutions to support the development of investment projects through borrowed funds. The purpose is to promote economic growth, provide more financing channels for enterprises and individuals, improve the efficiency of capital utilization, reduce financing costs, and promote economic development.

Investment-loan linkage refers to a financing model in which banking financial institutions combine "credit delivery" with "equity investment" of subsidiaries with investment functions established by the Group, and through relevant institutional arrangements, the investment income compensates for the credit risk, realizes the matching of credit risk and return of science and technology enterprises, and provides continuous financial support for science and technology enterprises.

In April 2016, the China Banking Regulatory Commission, the Ministry of Science and Technology and the People's Bank of China issued the Guiding Opinions on Supporting Banking Financial Institutions to Increase Innovation and Carry out Pilot Projects of Investment and Loan Linkage for Science and Technology Innovation Enterprises (CBRC Fa 2016 No. 14), which identified 5 regions and 10 banks as pilots to carry out commercial banks' investment and loan linkage business.

From a practical point of view, investment-loan linkage can be divided into internal linkage and external linkage.

Internal linkage refers to the linkage between a commercial bank and its subsidiaries with investment functions to conduct business. At present, only China Development Bank (CDB) is able to carry out internal linkage business through its subsidiary, China Development Bank Capital Co., Ltd.

Internal linkage improves business coordination and reduces costs due to the close connection between the main body, but it is also easy to spread risks, so a more stringent risk and isolation mechanism is required.

External linkage refers to the linkage between commercial banks and entities not directly established by the institution and with investment functions to carry out business. It mainly includes linkage with subsidiaries controlled by the group, cooperation with external venture capital institutions, indirect investment in science and technology enterprises through credit extension to venture capital institutions, and the establishment of industrial **.

There are various external linkage modes, but because there are many subjects involved, it is easy to conflict between subjects, so the coordination cost is also high.

In addition, from the perspective of investment mode, "option" is also an important model. The option model refers to the fact that a commercial bank signs an agreement with the invested enterprise while providing a loan, agreeing to hold a certain right to income of the enterprise, and exercising or transferring it under specific conditions to realize the income. At present, this model is developing rapidly.

The essence of the loan, debt and equity investment linkage mechanism is that financial institutions with different risk appetites and return requirements should establish a close community of interests around the differentiated investment and financing needs of enterprises at different growth stages. On the platform of the community of interests, we cooperate at different levels such as information, channels, products, and customers, and use rich financial tools to meet the diversified needs of enterprises and create one-stop financial services for enterprises.