China News Agency, Beijing, July 11 (Reporter Wang Enbo) In the first quarter of this year, China's GDP grew at a rate of -6.8% year-on-year, but bank profits achieved a positive growth of 6%. A spokesman for China Banking Regulatory Commission responded to this phenomenon on the 11th.
The spokesman said that at a time when the growth rate of the real economy has fallen sharply, the profit of the banking industry has maintained a certain increase for a variety of reasons, but the most important reason is the time lag caused by the current financial accounting and statistical system. According to the accrual basis accounting principle, the potential risk loan interest income is still fully included in the profit calculation, and the actual risk has not yet been fully reflected.
Secondly, profit growth is largely the result of a substantial increase in interest-earning assets. In order to vigorously support the prevention and control of epidemics and the resumption of business and production, the interest-bearing assets of the banking industry, especially credit, increased substantially year-on-year. In the first half of the year, interest-earning assets of banking financial institutions increased by 17 trillion yuan, and RMB loans increased by 12.09 trillion yuan. The substantial increase in scale brought about a corresponding increase in book interest and profits.
Third, some institutions fail to meet the standards. Even if the current minimum standard of 100% provision coverage is calculated, there is still a gap of more than 350 billion yuan in banking institutions. If they are evenly distributed to cover the provision gap throughout the year, the profit growth rate of these institutions will be greatly reduced, and some will even be negative.
The spokesman said that the China Banking Regulatory Commission will urge the banks to maintain reasonable growth in profits, make real profits, and make good use of profits. We should make greater efforts to benefit the real economy. We will do everything possible to reduce the comprehensive financing costs of enterprises, especially small and micro enterprises, and promote the financial system to benefit the real economy by 1.5 trillion yuan throughout the year.
It is necessary to fill the provision gap in a timely manner and comprehensively cover risk losses. Banks that fail to meet the standard should formulate plans to meet the standard as soon as possible. Under the current special situation, each bank should assess the potential risk according to the customer’s true risk level and the expected credit loss method, and make provisions accordingly.
We must effectively replenish capital. Appropriately reduce dividends, not increase bonuses, use limited profits more for capital replenishment, and improve risk resistance. (Finish)