(Original title: Shenyang Rural Commercial Bank successfully completed the work undertaken by Liaoyang Rural Commercial Bank, and the reform of small and medium-sized banks continued to advance to further enhance the ability to serve the real economy)
Financial Associated Press, July 3 (Reporter Gao Ping)On July 3, Shenyang Rural Commercial Bank disclosed an announcement that, with the approval of the national financial management department, from the date of the announcement, Liaoyang Rural Commercial Bank and Liaoning Taizihe Rural Bank’s outlets, personnel and deposits will be undertaken by Shenyang Rural Commercial Bank, and customer funds are safe. , transaction security is not affected, and business such as deposits and withdrawals are handled normally.
“At present, the province’s local corporate banks have sufficient funds and operate smoothly.” The relevant person in charge of the Liaoning Banking and Insurance Regulatory Bureau pointed out that in the next step, the China Banking and Insurance Regulatory Commission will work with the People’s Bank of China to actively support and cooperate with the Liaoning Provincial Party Committee and the provincial government to further promote local corporates. Bank reform and development, jointly maintain regional financial stability, enhance the ability of financial services to serve the real economy, and promote the overall and all-round revitalization of Liaoning.
“Through such mergers and reorganizations, the risks of a small number of small and medium-sized banks in the region can be more effectively resolved.” Zeng Gang, director of the Shanghai Finance and Development Laboratory, told the Financial Associated Press that in the medium and long term, in the process of mergers and reorganizations, risks are resolved. At the same time, it is necessary to consolidate the capital of the banks, and at the same time enhance the medium and long-term operating capabilities of these banks.
Liaoyang Rural Commercial Bank and other undertakings successfully completed the funds and transactions were not affected
The announcement specifically shows that the passbooks, certificates of deposit, bank cards and other transaction media that customers have handled in Liaoyang Rural Commercial Bank and Liaoning Taizihe Rural Bank can continue to be used in Shenyang Rural Commercial Bank, or can be replaced free of charge, and the security of funds and transactions will not be affected. Withdrawals and other businesses are handled as normal, and various services remain unchanged. After taking over, Shenyang Rural Commercial Bank will, under the supervision of the central bank and the China Banking and Insurance Regulatory Commission, effectively safeguard the legitimate rights and interests of depositors, other customers and relevant rights holders.
In this regard, the relevant person in charge of the Liaoning Banking and Insurance Regulatory Bureau specifically stated that in order to effectively protect the legitimate rights and interests of depositors, on July 2, 2022, Shenyang Rural Commercial Bank successfully completed the Liaoyang Rural Commercial Bank and Taizihe Rural Bank outlets, personnel, deposits of undertaking work. The undertaking work is stable and orderly, the business outlets are operating normally, various businesses are handled normally, and the security of funds and transactions will not be affected in any way.
According to public information, Shenyang Rural Commercial Bank was established on December 17, 2011 by restructuring from four rural credit cooperatives in Dongling, Yuhong, Shenbei and urban areas. It is the first prefecture-level rural commercial bank in Liaoning Province. The second headquarter bank is a financial institution with more business outlets and employees in Shenyang. As of the end of December 2021, Shenyang Rural Commercial Bank had total assets of 64.941 billion yuan, total liabilities of 61.562 billion yuan, various deposits balances of 55.728 billion yuan, and various loan balances of 28.2 billion yuan.
“From the current point of view, classified policies, mergers and reorganizations will become the main methods for risk disposal and reform of small and medium-sized banks.” Zeng Gang said that from the existing practice, capital injection, reorganization and merger and reorganization are relatively mainstream methods, which are not only conducive to maintaining financial The stability of the system can also reduce the government’s intervention cost and financial pressure, realize the smooth exit of troubled banks on the premise of avoiding systemic risks, and also promote all-round reform of troubled financial institutions, and enhance their operational capabilities and competitiveness.
The reform of small and medium-sized rural banks continues to advance
In fact, since the beginning of this year, there have been many cases of risk mitigation and disposal through mergers and acquisitions among small and medium-sized banks. Zeng Gang said that in practice, this has become a very good means of risk resolution and disposal. Mergers and acquisitions will not cause spillover and transfer of risks, nor will it affect the operational stability of the entire financial system while absorbing and resolving the operational risks of some small and medium-sized rural commercial banks in the region.
“The entire banking industry has experienced a long period of development, and industry competition has been intensifying. At the same time, some new factors such as financial technology have emerged. In addition to the accumulation of risks in the process of the economic cycle, a few small and medium-sized banks have some stock risks.” Zeng Gang said A reporter from the Financial Associated Press said that this is not a common phenomenon, and in the medium and long term, this is also a normal phenomenon in the development of the market.
Zeng Gang added that in the process of competition in every industry, local risks are inevitable. The next thing to face is how to effectively deal with local risks, avoid risk spillovers, and at the same time promote the sustainable development of small and medium-sized banks.
The China Banking and Insurance Regulatory Commission has previously introduced a series of achievements in the reform of small and medium-sized banks in the press conference. As of the end of 2021, the assets and liabilities of small and medium-sized rural banks were 45.7 trillion yuan and 42.2 trillion yuan respectively, accounting for 14.1% of the banking industry. Compared with the end of 2017, it increased by 0.7 percentage points respectively. All regulatory indicators are generally good, with a capital adequacy ratio of 12.4%, a non-performing loan ratio of 4% and a provision coverage ratio of 122.9%.
“The risks of small and medium-sized rural banks are generally controllable and converged.” The relevant person in charge of the China Banking and Insurance Regulatory Commission said that in the next step, the China Banking and Insurance Regulatory Commission will continue to further promote the reform of small and medium-sized rural banks to reduce risks, and continue to enhance their ability to serve the real economy. Adhere to reform thinking, unswervingly promote deepening reform. Encourage high-quality banks, insurance companies and other qualified institutions to participate in the merger, acquisition and reorganization of small and medium-sized rural banks, implement support policies for encouraging the merger and reorganization of small and medium-sized banks in conjunction with relevant departments, and promote the merger, reorganization and regional integration of small and medium-sized rural banks in accordance with the principles of marketization and legalization.
“The China Banking and Insurance Regulatory Commission held a briefing meeting and made it clear that it will continue to strengthen and improve corporate governance supervision, and promote financial institutions including small and medium-sized banks to deepen corporate governance reforms as an important means to prevent and defuse risks and achieve high-quality development. and rural small and medium-sized banks, respectively, to formulate the focus of the next step. It is expected that in the future, targeted measures will be taken to resolve the risks of small and medium-sized banks. Zeng Gang said so.