Financial sector policies should aim to reduce SMEs' financing constraints and promote productivity and investment, including facilitating banks' move to risk-based lending, and lowering the coverage of public credit guarantees.
With regard to financial developments, the temporary increase in concern over corporate fund-raising toward the year-end has eased gradually, on account of the government's expansion of credit guarantee system and the Bank's introduction of new market operations measures and lending facilities.
J TRUST was founded in 1977 in Japan, but currently we are concentrating our efforts on banking services, credit guarantees and collections of accounts receivable with a focus on financial business not only in Japan but also in Korea, Singapore and Indonesia.
However, the member also expressed concern that, if the credit guarantee system were, as reported by the media, to be expanded further, this would allow the survival of firms that should have been forced out of the market, and thus work against the efforts to achieve structural adjustment.
We also highly appreciated efforts to utilise regional savings for regional investments through the Asian Bond Market Initiative(ABMI), including the Credit Guarantee and Investment Facility(CGIF), to promote the development of local currency denominated bond markets and enhancing macroeconomic and financial stability.
In relation to corporate financing, several comments were made on the effects of(1) the Bank's new measures for money market operations decided at the last meeting and(2) the government's credit guarantee system expanded on October 1.
CRD(Credit Risk Database) was founded in March 2001 as a membership organization to collect financial and non-financial data, including default information, on small and medium enterprises(SMEs). It began as a voluntary association consisting of 52 credit guarantee corporations in Japan.
The most notable recent achievement of the ABMI is the establishment in November 2010 of a trust fund in the ADB, called the Credit Guarantee and Investment Facility(CGIF). The CGIF plans to start its credit guarantee operations for local currency-denominated corporate bonds issued in the ASEAN+3 jurisdictions in the first half of 2012.
They also welcomed the studies and work currently pursued in the following areas: On regional bond market issues by the Asian Development Bank and the World Bank, the APEC initiative to promote the development of securitization and credit guarantee markets, as well as the development new products for regional bond markets.
RM200 million has been set aside to establish an Intellectual Property Financing Fund scheme, which will be managed by Malaysia Debt Ventures Bhd(MDV)- 2% interest rate subsidy and 50% guarantee will be provided through Credit Guarantee Corporation Malaysia Bhd.
Some other members exhibited their recognition that the heightened tension had been alleviated in corporate financing. With the above-mentioned stability in the money market and the effects of the government's policy measures including the expansion of the credit guarantee system, firms were no longer actively piling up their on-hand liquidity.
The company strives to become a"non-bank with multiple sources of revenue" apart from credit business in finance area including, leasing, credit guarantee, flat 35 home loan and high growth Internet business. We are also aggressively pursuing retail financing business in the Asian market where developing nations are showing remarkable growth.
In addition, ASEAN+3 has launched the Asian Bond Markets Initiative(ABMI) to promote efficient and highly liquid bond markets in Asia. Under the initiative, the inaugural guarantee transaction was started in April 2013, in which corporate bonds of investment-grade corporations within Asia were issued with the guarantee of the Credit Guarantee and Investment Facility CGIF.
Commended the ongoing efforts under the Asian Bond Markets Initiative(ABMI) to promote the development of local currency-denominated bond markets and facilitate greater accessibility to the regional bond markets, and welcomed the endorsement to establish the Credit Guarantee and Investment Mechanism(CGIM) with an initial capital of US$500 million to support the issuance of local currency-denominated corporate bond in the region.
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