I. Overview of Joint-stock Banks There are 65,438+02 joint-stock banks in China, namely China Merchants Bank, Industrial Bank, Shanghai Pudong Development Bank, China CITIC Bank, China Minsheng Bank, China Everbright Bank, Ping An Bank, Huaxia Bank, Guangfa Bank, Zheshang Bank, Bohai Bank and hengfeng bank. The assets of these 12 joint-stock banks are second only to ICBC, China Construction Bank, Agricultural Bank, Bank of China, Bank of Communications and Postal Savings Bank, and the supervision of these 12 joint-stock banks by the regulatory authorities is also in place. Therefore, they have a strong ability to resist risks and there is almost no risk of bankruptcy. Money is safe in this 12 joint-stock bank.
Second, the comparison of safety indicators If we must compare which joint-stock bank is safer, we can compare the operational risks of banks from four aspects: loan-to-deposit ratio, capital-to-assets ratio, debt-to-current assets ratio, and non-performing loans-to-total loans ratio. But these four aspects are more difficult for non-bank employees to understand. In order to simplify the complexity of indicators and let everyone easily understand the security of joint-stock banks, I compare 12 joint-stock banks from the following three aspects according to the data of the 2020 annual report published by joint-stock banks:
1. profitability
Banks are enterprises. Whether an enterprise can survive for a long time depends on whether it can continue to make profits, that is, whether it can continue to make money. Only banks with strong profitability can exist better and longer. Therefore, to compare the security of banks, the first thing to look at is the level of profitability. According to the data of 2020 annual reports published by various banks, China Merchants Bank, Industrial Bank and Shanghai Pudong Development Bank have the largest net profits, which are 97.959 billion yuan, 67.65438 billion yuan and 58.993 billion yuan respectively.
2. Non-performing loan ratio
In addition to major sudden risks, the most important reason for bank failures is to control non-performing loans. There are many non-performing loans, which shows that banks are at great risk. Of course, we should not only look at the absolute number of non-performing loans, but also look at the ratio of non-performing loans.
For example, the NPL of Bank A is 65.438+0 billion yuan, and that of Bank B is 8 billion yuan. It can't be simply said that the operational risk of Bank A is higher than that of Bank B .. Because the loan amount of Bank A is very large, and the loan balance is 850 billion; The loan balance of Bank B is not large, only 350 billion. Therefore, the operational risk of banks should be measured by the non-performing loan ratio (non-performing loan balance/total loan balance).
The NPL ratio of Bank A is 1. 18% (NPL balance10 billion yuan ÷ loan balance of 850 billion yuan), and that of Bank B is 2.29% (NPL balance of 8 billion yuan ÷ loan balance of 350 billion yuan). Therefore, due to the non-performing loans of Bank B,
In 2020, among 12 joint-stock banks, China Merchants Bank, Ping An Bank and Industrial Bank have the lowest NPL ratios, which are 1.07%, 1. 18% and 1.25% respectively.
3. Non-performing loan provision coverage ratio
The bank has a high rate of non-performing loans, is it weak in handling non-performing loans? This is not necessarily the case, but also depends on an indicator, that is, "non-performing loan provision coverage ratio". When a loan can't be recovered, the bank confidently said, "I'm not afraid, I have the money to offset the loan that can't be recovered." Among them, "money" is the loan loss reserve accrued by commercial banks.
Loans issued by banks are irrecoverable. Therefore, banks usually have to set aside a reserve to deal with the risk that non-performing loans cannot be recovered. This reserve is called "loan loss reserve". So, how much loan loss reserve should banks set aside? The regulatory authorities have formulated the rules for the provision for bank loan losses:
Loan loss reserve = general reserve+special reserve+special reserve
According to the current regulations, the bank's "general reserve" is not less than1%of the year-end loan balance; The "special reserve" is set aside according to 2% of the balance of interest-related loans and 100% of the balance of loss-related loans. ; "Special reserve" is determined by the bank according to the special risk situation, risk loss probability and historical experience of different types of loans.
The more adequate the loan loss reserve, the more controllable the risk and the safer the bank will be. So, what is used to measure the adequacy of loan loss provision? It is necessary to introduce the concept of "provision coverage ratio of non-performing loans (also called provision adequacy ratio)". The provision coverage ratio of non-performing loans refers to the ratio of loan loss reserves accrued by commercial banks to non-performing loans. The best state of this ratio is 100%, and the calculation formula is as follows:?
NPL provision coverage ratio = loan loss reserve ÷ NPL balance = (general reserve+special reserve+special reserve) ÷ (subprime loan+doubtful loan+loss loan)
According to the data of 2020 annual reports published by various joint-stock banks, China Merchants Bank, Industrial Bank and Ping An Bank have the highest coverage rates of non-performing loans, which are 437.68%, 2 18.83% and 20 1.40% respectively. This shows that China Merchants Bank, Industrial Bank and Ping An Bank have strong ability to handle non-performing loans.
Finally, it needs to be emphasized that with the deposit insurance system, no matter which bank the money is in, when the bank goes bankrupt, each customer can directly get compensation of up to 500,000 yuan (including the principal and interest of the deposit), and the rest of the deposits and interest that are not directly compensated can participate in the liquidation compensation of the bank bankruptcy.