China-Singapore Jingwei Client, October 22 (Wei Wei) On the 22nd, Liang Tao, vice chairman of the China Banking and Insurance Regulatory Commission, stated at the 2020 Financial Street Forum that the Internet financial risk situation has fundamentally improved, and the country’s operating online lending institutions have gone from the peak period. The 5,000 companies fell to 6 at the end of September, and the scale of borrowing and lending and the number of participants declined for 27 consecutive months.
Liang Tao pointed out that in recent years, major results have been achieved in the battle to prevent and resolve financial risks, laying a solid foundation for effectively responding to the impact of the epidemic.
First, the risk of shadow banking has continued to narrow. Since the centralized rectification in 2017, the current scale has dropped by 20 trillion yuan from the historical peak, which has fundamentally maintained the stability of financial enterprises.
Second, the identification and disposal of non-performing assets have been greatly advanced.
By the end of September, commercial banks' loans overdue for more than 9 days accounted for 80.2% of non-performing loans, and some banks' loans overdue for more than 6 days were all included in non-performing loans.
In the first three quarters, the banking industry handled a total of 1.73 trillion yuan of non-performing loans, a year-on-year increase of 341.4 billion yuan.
The new loan loss reserve was 1.54 trillion yuan, a year-on-year increase of 15%.
Third, the situation of Internet financial risks has fundamentally improved. The number of online lending institutions operating across the country has dropped from 5,000 at the peak to 6 at the end of September. The scale of borrowing and lending and the number of participants have declined for 27 consecutive months.
Fourth, financial crimes have been severely hit.
The assets of illegal financial groups such as Anbang, Tomorrow, and Huaxin were liquidated and recovered.
The overall work progressed steadily, and the disposal of risk institutions such as Hengfeng Bank, Baoshang Bank, and Jinzhou Bank achieved initial results.
Fifth, the gray rhino, which threatened financial security, was brought under control.
New real estate loans accounted for the proportion of all new loans in the first three quarters, a decrease of 3.7% from the same period last year.
Cooperating with local governments to resolve hidden debts, in the past three years, bancassurance institutions have accumulated 11 trillion yuan in holdings of local government bonds.
Facing the impact of the epidemic this year, a series of relief measures have been introduced in a timely manner, with all-out efforts to promote the return of the economy to a normal cycle, early planning to respond to the resurgence of risks, and strict monitoring and prevention of external risk shocks, effectively preventing major financial risks caused by emergencies .
Liang Tao said that in the future, risks in the economic field may accelerate to financial risks. In the next step, the China Banking and Insurance Regulatory Commission will estimate risks more comprehensively, prepare more measures, and resolutely maintain the bottom line of avoiding systemic risks.
The first is to unswervingly fight the tough battle to prevent and resolve financial risks, comprehensively strengthen party leadership and party building in the financial market, promote the improvement of corporate governance mechanisms, seize the main contradictions of financial stability, prevent a resurgence of shadow banking, and increase the efforts to deal with non-performing loans , Strictly crack down on illegal financial activities, deepen the reform of small and medium-sized banks and defuse risks, prevent abnormal fluctuations in the financial market, increase financial anti-corruption efforts, and severely crack down on the interest linkages and relationships behind the risks.
The second is to promote high-quality economic development to prevent and resolve work risks.
Adhere to the general tone of seeking progress while maintaining stability, smooth the credit transmission mechanism, strengthen support for the country’s major strategic key areas and inclusive finance and other weak links, make better use of policy-based financial counter-cyclical adjustment tasks, and actively cultivate wealth management, insurance, Institutional investors such as trusts promote the healthy development of the capital market to promote macroeconomic stability and support the stability of the financial economy.
The third is to accelerate the establishment of a long-term mechanism for financial risk prevention and control, improve the emergency response mechanism for major financial risks, accelerate the completion of shortcomings in the system, and achieve full coverage of all institutional personnel, businesses, and on- and off-balance sheet, domestic and foreign risks.
The fourth is to strengthen the coordination and cooperation of domestic and international policies, strengthen the coordination of financial and fiscal industries, and regional policies, jointly form a joint force for risk prevention, strengthen multilateral and bilateral financial supervision cooperation, actively participate in the construction of the international financial governance system, and jointly respond to global economic and financial risks .
(Zhongxin Jingwei APP)
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