Why is it difficult for the textile industry to get "sunshine showers"?

In order to implement the spirit of the Standing Conference of the State Council, and to further strengthen the support for “agriculture, rural areas and farmers” and small and micro enterprises, and strengthen the economic capabilities of financial services entities, the People’s Bank of China decided to comply with the requirements of prudent operation from June 16 onwards. "Agriculture, countryside and farmers" and small and micro enterprises reached a certain percentage of commercial banks to cut the deposit reserve ratio by 0.5%.

According to reports, "agriculture, rural areas, and small- and micro-enterprises" reached a certain percentage means that: the new agriculture-related industries in the previous year accounted for more than 50% of the total new population, and the balance of agriculture-related agriculture in the end of the previous year accounted for all The proportion of the balance exceeds 30%; or the proportion of newly added small ** accounts for more than 50% of the total new **, and the balance of small ** accounts for all ** balances at the end of last year exceeds 30%.

According to this standard, this directional budget cut covers approximately 2/3 of city commercial banks, 80% of non-county rural commercial banks and 90% of non-county rural cooperative banks. The central bank stated that the scope of the targeted downward adjustment does not include the agency that has lowered the reserve ratio on April 25, 2014.

In addition, in order to encourage financial companies, financial leasing companies and auto finance companies to play a role in improving the efficiency of capital utilization and expanding consumption, the Bank lowered its reserve requirement ratio by 0.5%.

The central bank also stated that the People's Bank has been actively using monetary policy tools to vigorously support economic restructuring, and in particular to encourage and guide financial institutions to allocate more credit resources to areas such as “three rural issues” and small and micro enterprises. The targeted reduction in the reserve ratio is to encourage financial institutions such as commercial banks to allocate more funds to areas that need to be supported in the real economy, and ensure smoother transmission channels from the monetary policy to the real economy.

For the textile and apparel industry with a large number of small and micro enterprises, can it obtain more financial credit support from the central bank's “directional reduction” policy? The situation is clearly not optimistic.

According to the president of a commercial bank located in the textile province, it is clearly stated that for the banks, the textile industry is included in the scope of prudent lending, especially for small textile enterprises with less than 500,000 spindles and behind-the-board equipment, with poor market risk resistance. Low-grade products, the bank will not give financial support. For medium-sized textile companies, if they want to obtain funds from banks, they must also have corresponding collaterals or guarantees from big companies.

The reporter then interviewed an entrepreneur in Shaoxing, Zhejiang Province. He also felt that this policy would not ease the current situation of the textile industry. As textile companies pledged each other to lend money from the bank, some companies were caught in a vortex of mutual security. According to the entrepreneur, in Shaoxing and Xiaoshan areas, many textile, printing, dyeing, and garment companies faced closure, not because of the poor management of the company itself, but because of the company’s intercompany guarantees, and the production could not be maintained. Closed factory closed. He himself was guarantored by others. After the others "ran," the bank not only wants him to pay his debts, but also freezes his company's assets in the bank. Under such circumstances, banks will certainly not issue them anymore. In desperation, the entrepreneur also intends to rent a factory and stay away from the textile industry.