People’s Daily Online, Beijing, June 24 (Reporter Du Yanfei) “Banking and insurance industry achieves new leap-forward development”, “The coverage and accessibility of inclusive finance have been significantly improved”, “Important phased results have been achieved in preventing and resolving major financial risks”… …
On June 23, at a series of press conferences on the theme of “This Decade of China” held by the Propaganda Department of the Central Committee of the Communist Party of achievements in the development of the insurance industry.
Banking and insurance industry realizes new leap-forward development
“Since the 18th National Congress of the Communist Party of China, the banking and insurance industry has achieved a new leap-forward development.” Xiao Yuanqi said that a virtuous circle of finance and the real economy has gradually formed. In the past ten years, the average annual growth rate of bank loans and bond investment was 13.1% and 14.7%, respectively, basically matching the growth rate of nominal GDP.
Xiao Yuanqi introduced, first, the comprehensive strength has been continuously enhanced. So far, the total assets of my country’s banking industry are 344.8 trillion yuan, and it was 133.6 trillion yuan at the end of 2012. It has now become the world‘s largest banking market. The total assets of the insurance industry increased from 7.4 trillion yuan at the end of 2012 to 24.9 trillion yuan at the end of 2021, making it the second largest insurance market in the world. The total capital of my country’s banking and insurance industry has increased from 9.5 trillion yuan at the end of 2012 to 32.4 trillion yuan at the end of 2021, and the capital strength has been greatly enhanced.
Second, the financial structure has been continuously optimized. The proportion of indirect financing and direct financing has greatly improved with the adaptability of my country’s economic and social development and financial needs. The allocation of urban and rural financial resources has become more reasonable. At present, there are 8.8 banking institutions in the county area and 15.8 insurance institutions on average. Financial concentration and decentralization have become more balanced, which is conducive to the rational allocation of financial resources and the maintenance of financial stability, forming a system of financial institutions that promote and complement each other. At present, my country’s financial structure is basically compatible with my country’s economic system, economic development stage, and traditional financial habits and needs.
Third, the financial governance system with Chinese characteristics has been continuously improved. The institutional arrangements for the integration of party leaders into all aspects of corporate governance have taken shape. Internal checks and balances and external oversight reinforce each other.
Since the 18th National Congress of the Communist Party of China, the reform and opening up of the banking and insurance industry has presented a new situation. According to Xiao Yuanqi, vice chairman of the China Banking and Insurance Regulatory Commission, over the past decade, China has launched more than 50 bancassurance policies. In 2021, both the capital and assets of foreign banks in China will increase by more than 50% compared with ten years ago, and the capital and assets of foreign insurance companies in China will increase by 1.3 times and assets by 6 times in ten years. At the same time, a large number of professional banking and insurance institutions, such as foreign wealth management companies and foreign asset management companies, are actively participating in the development of China‘s financial market.
“The next step is to continuously optimize the financial structure system; continue to deepen the reform of banking and insurance institutions, and strengthen corporate governance, especially the reform of rural credit cooperatives, urban commercial banks, and the reform of the insurance marketing system; to further strengthen risk prevention and control, the main The key point is to further improve the endogenous risk prevention and control capabilities of banking and insurance institutions; build a financial supervision system with Chinese characteristics, so that all financial activities are included in the supervision, and establish a pre-event, in-event, and post-event full-chain and all-round regulatory mechanism arrangement. “Xiao Yuanqi said.
Significant increase in coverage and accessibility of financial inclusion
“In the past ten years, the average annual growth rate of inclusive small and micro enterprise loans and inclusive agriculture-related loans has reached 25.5% and 14.9% respectively, much higher than the average growth rate of loans. There are about 9.5 bank accounts per capita, and inclusive finance covers The scope and accessibility have been significantly improved.” Xiao Yuanqi introduced that at present, my country’s administrative villages have basically achieved full coverage of basic financial services. The loan interest rate for inclusive small and micro enterprises has dropped by more than 2 percentage points, and the availability of rural financial services has continued to increase. At the end of 2021, agriculture-related loans exceeded 43 trillion yuan, an increase of 25.6 trillion yuan over the end of 2012. Large and medium-sized banks also generally set up inclusive finance departments or other specialized institutions. Inclusive financial services are also at the leading level internationally.
In response to the difficulty and high cost of financing for small and micro enterprises, Chen Yulu introduced that since the 18th National Congress of the Communist Party of China, the People’s Bank of China and other financial management departments have focused on the following four major tasks:
First, innovate structural monetary policy tools to effectively play a leading role. Especially in response to the impact of the new crown pneumonia epidemic on small and micro enterprises, the People’s Bank of China has launched two direct tools, accumulatively supporting 13.1 trillion yuan in deferred loan repayment for small and micro enterprises, and 10.3 trillion yuan in inclusive small and micro credit loans. Yuan.
The second is to reduce the financing cost of small and micro enterprises by deepening the reform of interest rate liberalization. Since 2013, the People’s Bank of China has successively loosened the control of loan and deposit interest rates, established and improved the formation mechanism of loan market quoted interest rates, and promoted the reduction of financing costs for the real economy. The interest rate of newly issued small and micro enterprise loans in April this year was 5.13%, a drop of nearly 1 percentage point in the past five years.
The third is to focus on difficulties and blocking points, and establish a long-term mechanism for financial institutions to serve small and micro enterprises. For example, promoting financial institutions to set up inclusive finance departments, improving the exclusive mechanism for inclusive finance, promoting the establishment of provincial credit platforms in most provinces across the country, and promoting the sharing and sharing of credit information of small and micro enterprises, the financing coverage of small and micro enterprises has been significantly improved. By the end of April this year, the number of Pratt & Whitney small and micro credit customers was 51.32 million, accounting for one-third of all market players.
The fourth is to expand diversified financing channels and improve the availability and convenience of financing for small and micro enterprises. As of the end of April this year, a total of 1.78 trillion yuan of special financial bonds for small and micro enterprises had been issued, and the accounts receivable financing service platform had supported a total of 280,000 financing for small and micro enterprises, with an amount of 12.5 trillion yuan.
Data show that at the end of the first quarter of this year, the balance of inclusive small and micro loans exceeded 20 trillion yuan, supporting more than 50 million small and micro enterprises and individual industrial and commercial households. As of the end of April, the balance of loans to small and micro enterprises nationwide was 38.8 trillion yuan, 3.35 times that at the end of 2012.
Phased results achieved in preventing and resolving major financial risks
“Over the past ten years, we have coordinated financial development and security, and maintained the bottom line of no systemic financial risks. We have taken the lead in preventing and resolving major financial risks, and have achieved important phased results. Risks in key areas have been properly handled, and financial risks The overall convergence and overall control.” Chen Yulu said.
Xiao Yuanqi said that since the 18th National Congress of the Communist Party of China, the financial regulatory authorities have resolutely prevented and resolved financial risks, the blind expansion of financial assets has been fundamentally reversed, and high-risk shadow banking has dropped by about 25 trillion yuan from its historical peak. The disposal of non-performing assets has made great strides. In the past ten years, a total of 16 trillion yuan of non-performing assets has been digested, and a large number of prominent risks and hidden dangers have been eliminated. Financial violations and corruption are severely punished.
Xiao Yuanqi introduced that the contagiousness and spillover of prominent risk points have shrunk significantly, and the risks of illegal financial groups have been steadily resolved and dismantled. Debt risk of relatively large and wide-ranging large enterprises. Resolutely clean up the activities of deviating from the real to the virtual, arbitrarily adding leverage, and speculating with money, and the momentum of financial assets from the real to the virtual has been reversed. Severely cracked down on illegal and illegal financial activities, issued regulations on the prevention and disposal of illegal fund-raising, further promoted the special rectification of P2P online lending, carried out the rectification of equity and related-party transactions in bancassurance institutions on a regular basis, and focused on cracking down on illegal shareholders and executives who hollowed out financial institutions. In addition, the long-term mechanism for preventing and defusing financial risks has been gradually consolidated, financial anti-corruption and risk resolution have been integrated, and the transparency and legalization of financial supervision have been continuously improved.
Talking about the development of small and medium-sized banks, Xiao Yuanqi introduced that there are currently 3,991 small and medium-sized banks in my country with total assets of 92 trillion yuan, accounting for 29% of the total assets of the banking industry. “Sannong” services, and related loans accounted for 47% and 40% of the banking sector respectively.
“In the past five years, we have disposed of 5.3 trillion yuan of non-performing loans from small and medium-sized banks, which is a very strong effort.” Xiao Yuanqi said that in general, small and medium-sized banks are running smoothly and developing soundly, and the risks of small and medium-sized banks are completely Controllable, the legitimate rights and interests of financial consumers are protected in accordance with the law, and the financial supervision department will also do relevant work well.Return to Sohu, see more
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