Year-end report on improving the quality and efficiency of the real economy in financial services ④
Credit optimization and relief to prevent risks
Since the beginning of this year, the banking industry has continued to advance the adjustment of credit structure through deepening reforms, and steadily and orderly defuse risks, and has played an important role in serving the high-quality development of the real economy. The Central Economic Work Conference clearly requested that financial institutions be guided to increase support for the real economy, especially small and micro enterprises, technological innovation, and green development. After the banking industry has achieved positive results in relevant work, the next step is to continue to improve the quality and efficiency of serving the real economy in accordance with the requirements of stable characters, actively prevent and resolve risks, and hold the bottom line of avoiding systemic financial risks.
Optimization of credit fund structure
The People’s Bank of China’s Monetary Policy Committee’s fourth quarter 2021 regular meeting on December 24 proposed to increase support for the real economy, maintain reasonable and sufficient liquidity, and enhance the stability of the total credit growth. Statistics show that since the beginning of this year, credit support has increased to the real economy. In the first 10 months, various loans increased by 17.9 trillion yuan, an increase of 78.3 billion yuan year-on-year.
The research report of Huachuang Securities Research Institute believes that this year’s credit flow has the following notable characteristics: new loans to the manufacturing industry have increased rapidly, green loans have increased significantly, and real estate’s share of credit lines has decreased in all aspects.
Since the beginning of this year, manufacturing loan financing has increased significantly. According to data released by the China Banking and Insurance Regulatory Commission, manufacturing loans increased by 2.3 trillion yuan in the first 10 months, which has exceeded the full-year increase in 2020, of which 82.6% were mid- to long-term manufacturing loans. In addition, the growth rate of green credit is “bright”. As of the end of September, the green credit balance of 21 major domestic banking institutions reached 14.08 trillion yuan, an increase of more than 21% from the beginning of the year.
“At the same time, the quality of green credit assets has remained generally good. The non-performing loan ratio has remained below 0.7% in the past five years, which is far lower than the overall non-performing level of various loans in the same period. The environmental benefits of green credit have gradually emerged, according to the credit funds accounted for in green projects. Calculated in proportion to the total investment, 21 major banking institutions are expected to save more than 400 million tons of standard coal each year and reduce carbon dioxide equivalent emissions by more than 700 million tons.” Wang Chaodi, a spokesperson for the China Banking Regulatory Commission, said that the development of green credit will not only help financial institutions Optimizing the asset structure and promoting the quality and upgrading of the financial industry have also achieved significant emissions reduction effects.
From the perspective of flow, the most notable feature of credit this year is “structural optimization.” Credit funds are not flooded, but advance and retreat, with holdings and pressures. Against the backdrop of macro-controls such as insisting on “housing to live without speculation” and preventing and dissolving financial risks, the growth rate of real estate loans has slowed down and the proportion of loans has declined.
According to statistics from market institutions, real estate loans accounted for a full reduction in credit lines. New real estate loans in the first three quarters decreased by 1.2 trillion yuan from the same period last year. On the whole, the reliance of banking revenue on real estate has been significantly reduced.
Increasing relief efforts for private small and micro enterprises
Affected by the epidemic, some private small and micro enterprises have encountered the predicament of sluggish downstream markets and declining orders, and are facing cash flow shortages. In order to help companies tide over the difficulties, the banking industry on the one hand maintains the rapid growth of loans to private small and micro enterprises and promotes “incremental” and “expansion” of financing.
In the first 10 months of this year, loans to inclusive small and micro enterprises increased by RMB 3.2 trillion, a year-on-year increase of 24.6%, which was 9.7% higher than the average growth rate of various loans. The number of loans to inclusive small and micro enterprises increased by 27.6 from the beginning of the year. %; In the first 10 months, loans to private enterprises increased by RMB 5 trillion, newly issued private enterprise loans accounted for 53.5% of newly issued corporate loans, an increase of 1.8 percentage points from the beginning of the year, and the number of newly issued private enterprise loans increased year-on-year 28.2%.
In reality, due to lack of collateral, it is difficult for some private small and micro enterprises to obtain loans from banks. To this end, all parties have made full use of financial technology to vigorously develop credit loans, and the proportion of credit loans for private enterprises has continued to rise. As of the end of September this year, the balance of commercial banks’ private enterprise credit loans accounted for 14.7%, an increase of 5.3 percentage points from the end of 2018.
Statistics from the China Banking and Insurance Regulatory Commission show that the cost of loans to private small and micro enterprises continues to decline. In the first 10 months, the annualized interest rate of loans to inclusive small and micro enterprises was 5.7%, a decrease of 0.17 percentage points from the beginning of the year; the annualized interest rate of loans to private enterprises was 5.32%, which was a decrease of 0.03 percentage points from the beginning of the year.
“In order to promote the continuous reduction of financing costs for private enterprises, first, banks are required to comprehensively consider capital costs, operating costs, service models, guarantee methods, and actual risk levels and other factors to make scientific pricing. Second, reduce excessive reliance on mortgage guarantees and require institutions to insist on review The first source of repayment, the main basis for credit granting is the outstanding main business, the sound financial status, the good credit of major shareholders and actual controllers, and the reasonable increase of the proportion of credit loans. The third is to increase the intensity of fee reduction and profit, and continue to standardize bank credit, credit enhancement and assessment Charge management and behaviors, strictly investigate and punish illegal activities such as idling arbitrage of funds, illegally driving up corporate financing costs and other illegal activities. Fourth, strive to reduce the loan turnover cost of private enterprises, require banking institutions to take the initiative to meet the renewal needs of enterprises, develop and promote revolving loans, and annual audits To effectively meet the continuous financing needs of enterprises.” Wang Chaodi introduced.
Wang Chaodi said that the China Banking and Insurance Regulatory Commission attaches great importance to the financial services of private enterprises. “We require banking institutions to treat all types of ownership enterprises equally and fairly, and no discriminatory requirements shall be imposed on private enterprises in loan approvals. Under the same conditions, private enterprises and state-owned enterprises loan interest rates. Consistent with loan conditions”.
Continue to prevent and defuse risks
Over the past year, the regulatory authorities have played a “combined punch” to prevent and resolve risks through deepening reforms, with particular emphasis on preventing and resolving weak links. A series of documents including the “Guidelines for Corporate Governance of Banking and Insurance Institutions”, “Measures for the Evaluation of Duty Performance of Directors and Supervisors of Banking and Insurance Institutions (for Trial Implementation)”, “Measures for the Supervision of the Conduct of Major Shareholders of Banking and Insurance Institutions (for Trial Implementation)” and other documents have been issued successively, and relevant regulatory systems for corporate governance of banking institutions Continuous improvement.
At the same time, the China Banking and Insurance Regulatory Commission issued the “Notice on Further Promoting the Reform and Reorganization of Rural Banks to Resolve Risks”, issued guidance on performance compensation recourse deductions, and continued to deepen the reform of provincial associations in accordance with the principle of “one province, one policy”, etc. , To promote the continuous deepening of various reform measures. In addition, the “Internal Control Compliance Management Construction Year” and other activities were launched, four batches of major shareholders who violated laws and regulations were announced, typical cases were disclosed to warn and educate various institutions, and special rectification of industry equity and related-party transactions, etc., took multiple measures and paid attention to Treat both symptoms and root causes, and firmly hold the bottom line of preventing systemic financial risks.
Preventing and dissolving financial risks is a protracted war. Wen Bin, chief researcher of Minsheng Bank, believes that although financial risks are currently under control as a whole, the economic and financial situation at home and abroad is undergoing profound changes and uncertainties are increasing. We must be alert to the challenges of local financial risks to the overall economic and financial stability.
Experts in the industry pointed out that the most important thing is to prevent and resolve the hidden debt risks of local governments, and to properly handle the related debt risks of large-scale entities. Wang Meiting, a researcher at the Bank of China Research Institute, suggested that the ability to prevent and resolve major risks should be strengthened, and related risks should be actively resolved and dealt with in accordance with the principles of marketization. Bankruptcy, reorganization and liquidation of financing platforms is a market-oriented way to resolve hidden debts, which can isolate the debts of financing platforms and local governments and avoid excessive concentration of debt risks in the financial sector.
Regarding the debt risks of related entities, CICC recently issued a research report that the current banking system has abundant resources to resist risks, especially large and medium-sized banks that have strong credit risk resistance. The research report believes that real estate-related risks have a controllable impact on the banking industry. High-quality banks with prudent risk management and adequate provisions can better resist related risks. However, some small and medium-sized banks with greater exposure to risky real estate enterprises and insufficient provisioning may face Certain pressures require continuous attention to related risks.
(Editor in charge: Wang Qingyu)
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