(Fighting against New Coronary Pneumonia) China's banking sector's non-performing loan rate rose in the first quarter
China News Agency, Beijing, April 22 (Reporter Wang Enbo) The first quarter data shows that the non-performing loan ratio of the Chinese banking industry has increased slightly. Xiao Yuanqi, Chief Risk Officer and Spokesperson of the China Banking and Insurance Regulatory Commission, said in Beijing on the 22nd that this situation is within the estimated range and that the Chinese banking industry has sufficient capacity to resist risks.
The State Council Information Office held a press conference on the operation and development of the banking and insurance industry in the first quarter. Xiao Yuanqi introduced at the meeting that the first quarter data showed that the non-performing loan ratio of the banking industry was 2.04%, an increase of 0.06 percentage points from the beginning of the year. Among them, some small and micro enterprises and restaurants, lodging and other industries that were severely affected by the epidemic have risen relatively quickly, but within the estimated range.
He revealed that the official has been analyzing and closely monitoring this recently. The China Banking and Insurance Regulatory Commission conducted a comprehensive and differentiated stress test and comprehensive stress test in steps and scenarios. At the same time, it has increased the disposal of non-performing loans. In the first quarter, it handled more than 450 billion yuan (RMB, the same below), an increase of 81 billion yuan over the same period last year. And by gradually expanding the disposal channels and disposal methods, it not only reduces the banks' non-performing loans, but also creates conditions for them to provide new loans to support enterprises.
In addition, the China Banking Regulatory Commission also requires banks to support enterprises to resume work and production with greater efforts under the current circumstances, especially to support small and medium-sized enterprises to resume normal production and operation.
"Supporting the normal production and operation of enterprises is actually a measure for banks to prevent risks. To support their development, banks' non-performing loans will naturally come down." Xiao Yuanqi said that the difficulties encountered by the enterprise this time are temporary and caused by external factors. . Before the epidemic, most enterprises had good fundamentals. After the outbreak, the enterprise temporarily had some difficulties in production, operation, and cash flow, and could not be repaid on schedule. In addition to taking hedging measures, banks should also strengthen risk management and customer segmentation to distinguish which types of companies are temporarily in trouble due to the epidemic situation and have some defaults, and which companies have problems in their own operations.
Xiao Yuanqi further pointed out that the Chinese banking industry has sufficient provisions and capital to resist risks, such as the industry-wide provision of more than 6 trillion yuan. Although the non-performing loans of banks will increase slightly, the risks are completely controllable through the above measures. (Finish)