On July 23rd, according to the news from official website, China Banking and Insurance Regulatory Commission, China, China Banking and Insurance Regulatory Commission recently held a symposium on mid-2020 work and a conference on discipline inspection and supervision (video call) to summarize the work in the first half of the year, study and analyze the current situation, and arrange key work in the second half of the year. Guo Shuqing, Party Secretary and Chairman of China Banking Regulatory Commission, attended the meeting and delivered a speech. Li Xinran, head of the discipline inspection and supervision team and member of the Party Committee, deployed the discipline inspection and supervision work. Huang Hong, member and vice chairman of the CBRC, presided over the meeting, and Cao Yu, Liang Zhou, Liang Tao and Zhu Shumin, members and vice chairmen of the CBRC, attended the meeting.
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The deployment of supervision work in the second half of the year is the highlight. This meeting mainly made arrangements from the following five aspects: First, resolutely implement the centralized and unified leadership of the CPC Central Committee over financial work; The second is to deepen the anti-corruption work in the financial sector; Third, go all out to promote economic and social recovery to a normal cycle; The fourth is to hold the bottom line that systemic financial risks do not occur; The fifth is to improve the corporate governance of bank insurance institutions. Every aspect will put forward some specific target requirements.
The meeting pointed out that since the loan year in the first half of this year, in the face of the severe test brought by the COVID-19 epidemic and the complicated and changeable domestic and international environment, the CBRC has fully supported the economic and social recovery and development, continuously deepened the reform and opening up in the financial sector, firmly held the bottom line of no systemic financial risks, and achieved remarkable results in all its work. It is necessary to take precautions to deal with the sharp increase in non-performing assets in the banking industry, classify assets in strict accordance with the principle that substance is more important than form, make real profits, make adequate provisions, replenish capital and enhance the ability to resist risks. Resolutely prevent the resurgence of shadow banking, real estate loans, blind expansion and extensive management. Further strengthen the bottom line thinking, do your own thing based on the domestic situation, strive for strategic initiative, and make full preparations for long-term response to external environmental changes.
Some banking analysts told reporters that the CBRC has repeatedly stressed that banks should make real profits and make adequate provisions in advance to cope with the possible sharp increase in non-performing assets. It is expected that this will be reflected in the interim results announced by banks in the near future. Due to the differences between large banks and small and medium-sized banks in customer groups, business structure and capital cost, the impact of the epidemic is also divided. The complex macroeconomic environment at home and abroad has aggravated the risk exposure of some regions and industries. In addition, under the strong supervision environment, the identification of non-performing loans tends to be strict, the overall non-performing loans of commercial banks have increased, and the asset quality indicators of small and medium-sized banks have weakened more obviously. To deal with the risks of regional small and medium-sized banks, it is necessary to analyze specific problems.
Resolutely punish corruption behind major financial risks
In recent years, financial anti-corruption has maintained a high-pressure situation, and it has shown the characteristics of being exposed together with major financial risks. The meeting stressed that it is necessary to adhere to the principle of no forbidden zone, full coverage and zero tolerance, deepen anti-corruption work in the financial sector, and resolutely punish corruption behind major financial risks.
The accumulation of major financial risks is sometimes the "trouble" of moral hazard, accompanied by corruption and violation of discipline. For example, during the risk disposal of Baoshang Bank, many officials of the former banking supervision department in Inner Mongolia "fell off the horse". Recently, a number of Shanxi financial industry officials, including Zhang Anshun, former director of Shanxi Supervision Bureau of China Banking Regulatory Commission, are also under disciplinary review and supervision investigation on suspicion of serious violation of discipline and law.
The website of the State Supervision Commission of the Central Commission for Discipline Inspection recently reported that corruption in the financial sector has its own characteristics. The collusion between power and capital distorts the allocation of financial resources, erodes the financial supervision system and intensifies the concentration of financial risks. More professional, technical and hidden. Among them, financial regulators are the gatekeepers in the financial field, and their actions will inevitably lead to a series of chain reactions in the financial field, which will have a serious adverse impact on market stability and even threaten financial security and cause great risks.
The meeting stressed that it is necessary to adhere to the "five-in-one" coordinated promotion of identifying problems, preventing and controlling risks, recovering losses, making up for shortcomings, and reshaping the ecology, and promoting it in an integrated manner. Keep a close eye on key departments and key positions, comprehensively promote the investigation and prevention of clean government risks, and standardize the personal investment and financing behavior of system staff. Avoid formalism and bureaucracy, and effectively reduce the burden for the grassroots.
Double bottom line thinking, take precautions to deal with the substantial increase in non-performing assets in the banking industry.
Since the government work report of the "two sessions" put forward the idea of "strengthening supervision and preventing funds from idling", financial supervision departments have released strong supervision signals, such as the marginal adjustment of monetary policy made by the central bank to avoid arbitrage caused by low interest rates on funds, and the decline in supervision pressure on illegal structured deposits. Even if the economy encounters great downward pressure, it will not relax its vigilance against the accumulation of financial risks, which shows that steady growth and risk prevention are two parallel macro-control main lines.
Mao Zhenhua, chairman of China Chengxin Group, recently pointed out that since 2008, the double bottom line idea of steady growth and risk prevention has become the China experience of macro-control. The so-called double bottom line means that the economy maintains a certain growth and wins time and space to prevent risks, but it is necessary to avoid aggravating risks due to growth; Risk prevention is conducive to the long-term healthy development of the economy, but it is also necessary to avoid the improper pace and intensity of risk prevention from endangering economic growth.
The CBRC's deployment of work priorities in the second half of the year also reflects the double bottom line thinking. The meeting pointed out that it is necessary to closely follow the requirements of "six stabilities" and "six guarantees", better combine stabilizing enterprises to ensure employment and serving private small and micro enterprises, and make every effort to promote the normal economic and social cycle. Further implement various financial bail-out policies, focusing on enterprises that are temporarily in trouble but still have prospects, effectively preventing moral hazard and preventing "zombie enterprises" from hitchhiking. Comprehensive measures, such as resolutely rectifying improper charges, reasonably reducing rates, and increasing preferential loans, will be taken to reduce the financing costs of enterprises and promote the financial system to make a reasonable profit of/kloc-0.5 trillion yuan to various enterprises throughout the year. Substantially increase the medium and long-term financial support for advanced manufacturing and strategic emerging industries, and accurately support the national major regional development strategy and the "two new and one heavy" project construction.
Risk prevention is also unambiguous. This meeting focused on the following specific objectives and requirements for preventing systemic financial risks:
First, take precautions to deal with the sharp increase in non-performing assets in the banking industry, classify assets in strict accordance with the principle that substance is more important than form, make real profits, make adequate provision, replenish capital and enhance the ability to resist risks.
Second, resolutely prevent the resurgence of shadow banking, the resurgence of real estate loans and the blind expansion of extensive management.
The third is to ensure that the special rectification of online loan risks is completed as scheduled and the risks are cleared.
The leading group for mutual fund rectification and the leading group for online loan rectification have previously made it clear that they will strive to basically complete the main objectives and tasks of special rectification of Internet finance and online loan risks in 2020. The data shows that more than 5,000 P2P online lending institutions have withdrawn from the country since the special rectification. By the end of the first quarter of this year, there were 139 P2P online lending institutions actually operating in China, which was 86% lower than the beginning of 20 19. The loan balance decreased by 75%; The number of borrowers decreased by 80%; The number of borrowers decreased by 62%. The number of institutions, loan scale and participants decreased by 2 1 month.
The fourth is to deal with illegal financial groups and major risk events according to laws and regulations, further improve the transparency of supervision, give play to the role of public supervision, enrich compulsory measures for prudential supervision, increase penalties and improve the efficiency of punishment.
Yif Wang, chief banking analyst of Everbright Securities (60 1788, Stock Bar), once said that the deep-seated contradictions accumulated in China's economy for a long time are gradually exposed due to multiple internal and external factors, which are manifested in the high debt leverage of enterprises, the concentration of credit resources in cyclical industries, the increasing debt pressure of local governments, frequent risk events and the high incidence of financial risks. For the banking industry, the risks are generally controllable, but the structure is divided. Compared with large and medium-sized banks, city commercial banks and rural financial institutions are weaker in risk resistance and face greater capital replenishment pressure.
A new report recently released by Moody's pointed out that in the first quarter of 2020, the asset quality, capital level and profitability of banks in China declined. At the same time, the non-performing loan ratio of the banking system rose from 65,438+0.86 at the end of 2065,438+09 to 65,438+0.965,438+0% at the end of March 2020. In view of the lag fully reflected by the rise of loans overdue rate, the non-performing loan ratio of the banking system may further increase. As consumer confidence will remain weak for some time, asset quality pressure will persist in the foreseeable future.
The trend of banking differentiation will be more prominent under the influence of the epidemic. Wen, director of the Department of International Financial Institutions of China, said that with the continuous strengthening of regulatory policy guidance and the gradual improvement of the formation mechanism of the loan market quotation rate (LPR), the overall interest margin level of the banking industry is still under great pressure. At the same time, under the downward pressure of asset quality, the provision provision has increased, the overall profitability has weakened, and the performance of small and medium-sized banks has become more obvious. At the same time, the complex macroeconomic environment at home and abroad has aggravated the risk exposure of some regions and industries. In addition, under the strong supervision environment, the identification of non-performing loans tends to be strict, and the overall non-performing loans of commercial banks have increased, especially the asset quality indicators of small and medium-sized banks have weakened. This is because small and medium-sized banks have a higher proportion of credit in industries directly affected by the epidemic and small and medium-sized micro-customers, so the impact will be higher than that of large banks.
In addition, due to the different economic characteristics in different regions, the credit status of regional small and medium-sized banking institutions and the degree of being affected by the epidemic are also different. Taking Zhejiang, Jiangsu and Guangdong as examples, China Chengxin International pointed out that the overall economy in the eastern region is relatively developed, residents' wealth and economic activity are high, which creates a good environment for the development of banks, and the overall banking business development and financial performance are at a good level in the country. However, under the impact of the epidemic, small and micro private manufacturing and export-oriented economy in the region are still prone to certain fluctuations, thus affecting the quality of bank assets; However, the central and western regions have relatively small economic volume, weak industrial base, insufficient economic vitality compared with the eastern regions, simple banking business and income structure, relatively high concentration of loan industry and customers, and weak overall anti-risk ability. Compared with banks in the eastern region, asset quality and profitability are more vulnerable to the epidemic.
In view of the potential impact of the deterioration of asset quality, the CBRC has recently repeatedly stressed that the banking industry should make real profits, make adequate provisions, replenish capital and enhance its ability to resist risks. Some banking analysts told reporters that changes in indicators such as profits and provisions are expected to be reflected in the interim results announced by banks recently.
Continuously improve corporate governance
Improving the corporate governance of banks and insurance institutions is the continuous supervision focus of CBRC in recent years. This meeting once again stressed that the management of shareholders' equity should be strictly regulated, the qualification examination of shareholders should be strengthened, the "commitment system" of shareholders' shares should be implemented, and illegal shareholders should be resolutely prohibited from entering the industry. Strengthen the performance supervision of the "first floor of the two sessions", urge directors to improve their professional independence, strengthen the board of supervisors to independently exercise their supervisory duties according to law, and strengthen the code of conduct for senior management. Further standardize the scope and content of information disclosure, establish a normalization mechanism for major illegal shareholders, and strengthen external supervision and market constraints.
In addition to continuing to strictly supervise the "first floor of the two sessions", there will be more practical measures to broaden the sources of capital replenishment for small and medium-sized banks in the second half of the year. The China Banking Regulatory Commission recently revealed that there will be 200 billion local special bonds to support small and medium-sized financial banks in Kloc-0/8, allowing provincial governments to issue special bonds to subscribe for qualified capital instruments such as convertible bonds of small and medium-sized banks. According to the arrangement, the implementation plan of local special bonds to supplement the capital of small and medium-sized banks is formulated by the provincial government in combination with the actual situation within its jurisdiction. After the scheme is mature, it will be submitted to the Ministry of Finance for formal application after being approved by the CBRC in conjunction with relevant departments. At present, the provinces in need are drafting and improving the relevant implementation plans for deepening reform and replenishing capital of small and medium-sized banks in the province.
Zhu, Vice President/Senior Credit Rating Director of Moody's, said recently that the rapid growth of risk-weighted assets led to a decline in capital level, and the core Tier 1 capital adequacy ratio decreased by an average of 4 basis points in the first quarter of 2020. In the same period, the profitability measured by annualized asset profit rate also decreased by 4 basis points, reaching 0.98%, and may continue to be under pressure due to the narrowing of net interest margin and the rising cost of credit.
In addition, the meeting proposed to steadily promote the reform of rural credit cooperatives, adjust measures to local conditions, and implement classified policies to maintain the integrity of local financial organizations, especially to maintain the overall stability of the status of rural credit cooperatives or rural commercial banks as county legal persons. Further optimize the insurance supervision mechanism, accelerate the reform of insurance fund utilization, strengthen the role of insurance in the disaster protection system, accelerate the development of catastrophe insurance, and promote the expansion of the pilot project of the third pillar construction of endowment insurance.