Small and medium-sized local corporationsbankIn recent years, the reform of risk reduction work has achieved remarkable results, but there is still a long way to go to improve corporate governance and “defuse” financial risks.
On May 20, the China Banking and Insurance Regulatory Commission held a briefing meeting, and the relevant person in charge introduced the urban business in recent yearsbankrural small and mediumbankProgress in reforming risk mitigation and improving corporate governance, as well as the next work arrangement.
The relevant person in charge of the China Banking and Insurance Regulatory Commission said that since the 2017 National Financial Work Conference, the regulatory authorities have continued to urge and guide urban commercial banks and small and medium-sized rural banks to stick to their positions, return to their origins, focus on their main businesses, and continue to rectify financial chaos, and achieved remarkable results.
According to the data, as of the end of the first quarter of this year, there were 128 city commercial bank legal person institutions nationwide, nearly 20,000 business outlets nationwide, and 490,000 employees in the industry. From 2017 to 2021, the average annual growth rate of assets of city commercial banks dropped significantly by 13.3 percentage points compared with the average annual growth rate from 2011 to 2016, basically returning to the average level of commercial banks.
As of the end of 2021, there were 3,902 small and medium-sized rural banks nationwide, including 2,199 rural credit cooperatives (including rural commercial banks and rural cooperative banks), 1,651 village and town banks, 39 mutual fund cooperatives, and 13 loan companies. Since 2018, a total of 627 high-risk rural small and medium-sized banks have been disposed of, with a total of 2.6 trillion yuan in non-performing loans, more than the sum of the previous ten years.
City commercial banks: Standardize cross-regional operations and basically eliminate non-licensed institutions in different places
The relevant person in charge of the China Banking and Insurance Regulatory Commission said that since 2017, the operation and development of city commercial banks has become more rational, and the asset structure has been continuously optimized. The proportion of city commercial bank loans in total assets increased from 36% at the end of 2016 to 51.3%, the proportion of investment assets decreased from 40.6% to 35.2%, and the proportion of interbank assets decreased from 11.8% to 5.9%.
At the same time, financial chaos has been effectively rectified. Continue to increase the investigation and punishment of violations of laws and regulations, and seriously rectify chaos. Since 2017, 2,842 city commercial banks have been punished, with a total fine of 1.2 billion yuan. Standardize cross-regional business behavior, clear 478 non-licensed institutions in different places, and basically achieve zero. We will vigorously dismantle shadow banking, curb the “displacement of funds from the real to the virtual”, and reduce a total of 7 trillion yuan in businesses with shadow banking characteristics.Completed nearly 3 trillion stock non-compliancefinancial managementAfter rectification, all capital-guaranteed financing will be cleared.
Regarding the current situation of risk prevention and control of city commercial banks, the above-mentioned person in charge said that at present, the overall operation of my country’s city commercial banks is stable and the risks are controllable. A considerable number of institutions have found differentiated and characteristic development paths in the market competition, with strong core competitiveness , the health of the institution is high. However, due to cyclical, institutional, structural and behavioral factors, there are also some structural problems in the field of city commercial banks. The problems accumulated by individual institutions for many years are relatively serious, and there are certain hidden risks.
In order to promote reform and risk reduction, in recent years, city commercial banks have stepped up efforts to identify and dispose of non-performing products. In the five years from 2017 to 2021, city commercial banks have disposed of 1.8 trillion yuan of non-performing loans, which is 5.2 times the cumulative disposal amount from 2011 to 2016. Increase capital replenishment. The policy tool to make good use of local government special bonds to supplement the capital of small and medium-sized banks has been approved to supplement the capital plan of 104.6 billion yuan for 39 city commercial banks in 13 provinces.
In addition, strengthen corporate governance supervision.increase pairshareholderWe will carry out special rectification of equity and related-party transactions, disclose major illegal shareholders, and remove problematic shareholders in accordance with the law. For example, Sichuan Bank cleaned up 258 unqualified old shareholders according to law.
Small and medium-sized rural banks: initial containment of shareholder equity chaos
Small and medium-sized rural banks have also achieved remarkable results in the reform of risk mitigation in recent years. On the one hand, in recent years, through increasing efforts to dispose of non-performing assets, introducing qualified shareholders, absorption and merger,reorganizationIntegration, standard upgrade and other means, to jointly promote the disposal of high-risk rural small and medium-sized banks.
Data show that since 2018, a total of 627 high-risk rural small and medium-sized banks have been disposed of, with a total of 2.6 trillion yuan in non-performing loans, more than the sum of the previous ten years. In conjunction with the Ministry of Finance, the People’s Bank of China and other departments, we innovated measures to supplement the capital of small and medium-sized banks with special local government bonds, and injected 133.4 billion yuan into 289 small and medium-sized rural banks.
On the other hand, continuous and in-depth rectification of small and medium-sized rural banks, investment, bills and other businesses has been carried out, and the problem of capital idling has been effectively curbed. The balance of inter-bank assets and inter-bank liabilities decreased, the investment in special-purpose vehicles dropped by more than 50%, and the total off-balance sheet business remained at a low range.
The chaos of shareholder equity was initially curbed. From 2018 to 2020, a three-year special rectification of shareholder equity will be carried out to standardize and improve shareholder equity management and corporate governance of rural small and medium-sized banks. More severe punishments have been imposed on outstanding issues such as illegal shareholding, manipulation of institutions’ normal operation, and use of related-party transactions to transfer interests. A total of more than 4,000 shareholders have been restricted from voting rights and ordered to transfer more than 6 billion shares. Strictly and prudently carried out corporate governance assessments, and lowered the assessment results of more than 100 small and medium-sized rural banks that failed to rectify existing problems and newly violated regulations.
In addition, the reform of the system and mechanism of small and medium-sized rural banks has achieved breakthroughs. In order to improve the corporate governance structure, the vast majority of rural credit cooperatives and more than half of the state-owned village banks have implemented the system of party secretary and chairman. In October 2021, the reform pilot program of Zhejiang Rural Credit Cooperatives was approved by the State Council, and in April 2022, Zhejiang Rural CommercialUnion BankThe official opening marks the official start of a new round of reform of the rural credit cooperatives across the country.
The sustainable development of small and medium-sized rural banks still faces five challenges
The relevant person in charge of the China Banking and Insurance Regulatory Commission said that in recent years, the China Banking and Insurance Regulatory Commission has adhered to strict supervision, insisted on fighting early and small, insisted on compacting the responsibilities of all parties, and made every effort to promote the reform of small and medium-sized rural banks to reduce risks, and prudently dealt with a number of risk points and kept the bottom line of risks. . The risks of small and medium-sized rural banks are generally controllable and generally convergent.
However, the person in charge also said that from the perspective of stock, the historically accumulated risks in some regions are relatively large, and it is necessary to continue to increase their disposal efforts; from the perspective of increments, the risks brought about by the impact of the epidemic, economic transformation and industry changes will gradually appear.
The above-mentioned person in charge said that the sustainable development of small and medium-sized rural banks faces challenges, which are mainly reflected in five aspects.
First, the path for the integration of party leadership into corporate governance needs to be improved. Small and medium-sized rural banks have a low level of party organization, and to varying degrees, there are problems such as weakened party leadership, lack of party building, ineffective comprehensive and strict party governance, and disconnection between party building and business.
Second, there are deficiencies in shareholder equity management and corporate governance. The situation of “small, scattered and weak” shareholders of small and medium-sized rural banks is common, and some institutions still have problems such as insider control, outsider manipulation, and illegal affiliated transactions. Rural credit cooperatives and provincial associations have vague positioning, and the problems of offside and vacancy coexist in the performance of duties;executiveInsufficient professional competence of personnel and lack of effective supervision.
Third, there are insufficient risk disposal resources in some regions. The risk distribution of small and medium-sized rural banks is very uneven, and some provinces and regions have outstanding risks. However, local economic transformation is difficult, qualified market capital is short, and government financial resources are limited, making it difficult to provide risk mitigation funds. At the same time, it is expected that some of the deferred principal and interest loans will become non-performing, and the pressure on risk disposal will further increase.
Fourth, the legal system for risk prevention and control is not sound. The construction of my country’s problem bank disposal regulations is relatively lagging behind, the market-oriented exit channels for high-risk institutions are not smooth, and the market discipline of survival of the fittest is difficult to play. The supervision and punishment of bank shareholders by regulatory authorities lack clear legal authorization, and it is difficult to penetrate and identify invisible shareholders and entrusted shares.
Fifth, the competition in the county financial market is fierce. In recent years, large banks have continued to lower their business focus, with an average of 9 banks operating in each county. The traditional advantages of small and medium-sized rural banks in terms of popularity, location, and variety have been impacted, and their shortcomings such as lagging information technology construction and high operating costs have become more prominent, some institutions have lost high-quality customers, and their profitability has continued to decline.
The big shareholder’s robbery reveals that corporate governance is useless
In recent years, small and medium-sized banks with legal persons have achieved remarkable results in the reform of risk mitigation, but there is still a long way to go to improve corporate governance and “defuse” financial risks.
The above-mentioned person in charge said that in the process of fully promoting the reform of city commercial banks, the China Banking and Insurance Regulatory Commission has formed some experiences, including that city commercial banks must improve corporate governance, must form a joint work force between regulatory authorities and local territories, and must promote strong supervision and strong supervision. supervision, etc.
“Some city commercial banks are exposed to risks, exposing that their corporate governance is ineffective, large shareholders are scattered and robbed, insiders control, serious corruption, institutions deviate from their positioning, brutal expansion, and business risks accumulate rapidly until they break out.” The above-mentioned person in charge said that the next In the first step, we should take improving corporate governance as the top priority of city commercial bank reform and risk mitigation, strengthen shareholder equity supervision, promote the formation of effective self-discipline, and achieve high-quality development.
In terms of the joint efforts between the supervision department and the local territory, the above-mentioned person in charge said that city commercial banks are local legal person institutions, the party relationship is local, the management of cadres is local, the taxation and employment are local, and the local economy is served. The above-mentioned areas where the financial risk disposal of city commercial banks has achieved remarkable results are the results of local party committees and governments attaching great importance to and vigorously coordinating and promoting them. In the next step, the financial supervision department will work with local party committees and governments to jointly prevent and resolve regional financial risks.
In addition, some city commercial bank risk events have exposed the collusion of corrupt executives, unscrupulous business owners, and corrupt supervisors of city commercial banks, and financial corruption and financial risks are deeply intertwined. In the next step, the regulatory authorities will adhere to the positioning of “supervision and supervision”, strengthen the linkage and coordination with the discipline inspection and supervision departments, and promote financial anti-corruption and financial risk disposal in an integrated manner.
Adhere to “doing small and scattered” rural small and medium-sized banks are not allowed to absorb large deposits from other places
Regarding the regulatory focus of small and medium-sized rural banks in the next step, the above-mentioned person in charge said that the China Banking and Insurance Regulatory Commission will continue to follow the basic principles of stabilizing the overall situation, coordinating and coordinating, implementing classified policies, and accurately disarming bombs, and further promote the reform of small and medium-sized rural banks to reduce risks, and continue to enhance services for the real economy. ability.
First, adhere to the bottom-line thinking, and do a good job of risk prevention and resolution without slack. Implement the risk notification system of the Financial Committee of the State Council, notify the provincial party committees and governments of the risks of small and medium-sized rural banks, promote the improvement of the fiscal and financial risk disposal mechanism under the responsibility of the main leaders of the local party and government, and steadily advance risk disposal.
Strengthen coordination and cooperation with relevant departments, continue to do a good job of supplementing the capital of small and medium-sized banks with special local government bonds, and supplement the capital of small and medium-sized rural banks through multiple channels.Broaden sources of funds for risk disposal and rational use of depositsInsurancefund, Financial Stability Guarantee Fund, etc., “one bank, one policy” to deal with key high-risk institutions in a prudent manner to ensure that risks do not spill over. We will enrich the channels for disposal of non-performing loans, implement support policies for the disposal of non-performing loans of local small and medium-sized banks, and accelerate the resolution of non-performing assets. The main responsibility for risk disposal of small and medium-sized rural banks shall be consolidated, shareholders and creditors shall bear risk losses in accordance with the law, and moral hazard shall be strictly prevented.
The second is to adhere to the reform thinking and unswervingly promote the deepening of reform. Guide relevant provinces to speed up the process of rural credit reform, change the functional orientation of provincial associations, establish positive and negative lists for the performance of provincial agencies of rural credit cooperatives, and improve supervision and restraint mechanisms.
Strengthen the organic integration of party leadership and corporate governance, reasonably set up “three meetings and one layer” and professional committees, and build a simple and practical corporate governance mechanism that conforms to the actual situation of small legal persons. Strictly restrain the behavior of major shareholders, strengthen the management of related transactions, and prevent them from improperly interfering with the internal operation and management of the institution. Strengthen the building of the senior management team, guide and make good use of the senior management talent pool established by the Banking Association, support the open and transparent selection of senior executives in a market-oriented manner, and build a team of senior officials with strong politics and business skills.
Encourage high-quality banks,InsuranceInvolvement of companies and other eligible institutionsM&ATo reorganize small and medium-sized rural banks, implement supporting policies to encourage small and medium-sized banks to merge and reorganize together with relevant departments, and promote the merger, reorganization and regional integration of small and medium-sized rural banks in accordance with the principle of marketization and legalization.
The relevant person in charge of the China Banking and Insurance Regulatory Commission said on May 20 that most of the financial risks in the Liaoning region are existing problems, and some risks have been cleared, but it will take a process to achieve complete clearing.
“In the next stage to promote the restructuring of small and medium-sized banks, it is still necessary to adapt to the development of the market, and the adjustment of relevant systems and mechanisms must adapt to market changes. The China Banking and Insurance Regulatory Commission has an open attitude towards the reform of small and medium-sized banks, and will actively cooperate with relevant departments to promote the principle of marketization and the rule of law. The mergers and acquisitions and restructuring of small and medium-sized banks enhance the adaptability and competitiveness of small and medium-sized banks, and lay an important micro-foundation for the stable operation of small and medium-sized banks.” said the person in charge.
The third is to persist in small and scattered operations, and improve financial service capabilities.Further optimize the positioning and supervision of supporting agriculture and small-scale banks, urge small and medium-sized rural banks to adhere to their main responsibilities and main businesses, continue to improve product systems, improve service quality, and accurately serve inclusive finance andrural revitalization.persist increditFunds are sourced locally, used locally, and distributed in small amounts. Large deposits from different places are not allowed, and loans to different places are not allowed. Large-amount credits are strictly controlled, and the focus of serving the local market is lowered.
Actively adapt to the development of county areas and changes in financial supply and demand, guide and improve financial services for “new citizens”, and expand effective credit issuance. Guide small and micro enterprises that have been greatly affected by the epidemic but have the willingness to repay and have strong employment ability to maintain stable credit support and tide over the difficulties together.Promote the digital transformation of small and medium-sized rural banks, useBig Data. Fintech improves customer service, improves risk control efficiency, transforms business development model, and consolidates the dominant position of rural small and medium-sized banks in the county financial market through Fintech + crowd tactics.
Fourth, adhere to strict supervision and improve supervision efficiency. Adhere to the positioning of “supervision and supervision”, continue to strengthen the construction of supervision style, strengthen supervision responsibility, and vigorously promote the supervision spirit of fulfilling duties, daring to supervise, proficient in supervision, and strict accountability. Strictly control the market access threshold in the process of reform and risk reduction of small and medium-sized rural banks, strengthen source control, and prevent entering the market with illness. Improve the risk early intervention mechanism, investigate all kinds of hidden risks with a more proactive attitude, insist on early identification, early warning, early detection, and early disposal, and eliminate risks in their infancy and early stages. Strengthen on-site inspections, strictly abide by the bottom line of the regulatory system, resolutely punish all kinds of violations of laws and regulations in accordance with the law, and promote the establishment of a compliant and stable development pattern for the entire industry of small and medium-sized rural banks.
(Article Source:brokerageChina)