Chinanews.com, July 23. According to the website of the China Banking and Insurance Regulatory Commission, the China Banking Regulatory Commission recently held a 2020 mid-year work symposium and disciplinary inspection and supervision work (telephone) meeting. The meeting proposed to firmly hold the bottom line of preventing systemic financial risks. Plan ahead to deal with the substantial increase in non-performing assets in the banking industry, strictly categorize asset quality in accordance with the principle of substance over form, make real profits, raise adequate provisions, replenish capital, and enhance risk resistance.
The meeting pointed out that since the beginning of this year, facing the severe test brought by the new crown pneumonia epidemic and the complex and changeable domestic and foreign environment, we will fully support the economic and social recovery and development, continue to deepen the reform and opening up of the financial sector, and firmly hold the bottom line of avoiding systemic financial risks. Obvious results have been achieved in various tasks.
The meeting emphasized that we must adhere to no forbidden areas, full coverage, and zero tolerance, deepen anti-corruption work in the financial sector, and resolutely punish corruption issues behind major financial risks. Insist on identifying problems, preventing and controlling risks, recovering damages, making up for shortcomings, and reshaping the ecological "five-in-one" coordinated advancement, promoting the construction of a clean financial culture, and advancing together that we dare not, cannot, and do not want to be corrupt. Pay close attention to key departments and key positions, comprehensively promote the prevention and control of corruption risks, and standardize the personal investment and financing behavior of system staff. Deepen the implementation of inspection and audit tasks, and continue to deepen political supervision. Persist in rectifying the "four styles" and fostering new styles at the same time, constantly rectify the "four styles", vigorously refrain from formalism and bureaucracy, and effectively reduce the burden on the grassroots. Deepen the reform of the discipline inspection and supervision system, promote the construction of the supervision and discipline accountability system, and accelerate the construction of high-quality professional discipline inspection and supervision cadres.
The meeting pointed out that it is necessary to closely follow the requirements of "six stability" and "six guarantees", better combine stabilizing enterprises to ensure employment and serving private small and micro enterprises, go all out to promote economic and social recovery, and unswervingly promote high-quality economic development . Further implement various financial relief policies, focus on temporarily distressed but still promising companies, effectively prevent moral hazards, and prevent "zombie companies" from free-riding. Comprehensive measures have been taken to resolutely rectify improper fees, reasonably reduce fee rates, and increase loan concessions to reduce corporate financing costs, and promote the financial system to make reasonable profit distributions of 1.5 trillion yuan to various enterprises throughout the year. Significantly increase medium and long-term financial support for advanced manufacturing and strategic emerging industries, and accurately support the country's major regional development strategies and the construction of "two new and one heavy" projects to help win the battle against poverty and pollution prevention.
The meeting requested that the bottom line of systemic financial risks should be kept firmly. Plan ahead to deal with the substantial increase in non-performing assets in the banking industry, strictly categorize asset quality in accordance with the principle of substance over form, make real profits, raise adequate provisions, replenish capital, and enhance risk resistance. Resolutely prevent the resurgence of shadow banking, the resurgence of chaos in real estate loans, and the recurrence of blind expansion and extensive operations. Ensure that the special rectification of online loan risks is completed on schedule and the risks are cleared. Deal with illegal financial groups and major risk events in accordance with laws and regulations, further improve the transparency of supervision work, give full play to the role of public supervision, enrich prudential supervision and compulsory measures, increase punishment, and improve punishment efficiency. Further strengthen the bottom-line thinking, base ourselves on domestic affairs, strive for strategic initiative, and be fully prepared for long-term response to changes in the external environment.
The meeting emphasized that it is necessary to continuously improve the corporate governance of bancassurance institutions and integrate the party leadership into all aspects of corporate governance from the institutional and organizational aspects. Strictly regulate shareholder equity management, strengthen shareholder qualification review, implement a "commitment system" for shareholders' equity participation, and resolutely implement industry bans for shareholders who violate laws and regulations. Strengthen the supervision of the performance of the "two sessions and one level", supervise and promote the professional independence of directors, strengthen the independent exercise of supervision duties by the board of supervisors in accordance with the law, and strengthen the code of conduct for the performance of senior management.
The meeting requested to further regulate the scope and content of information disclosure, establish a normalization mechanism for the disclosure of major illegal shareholders, and strengthen external supervision and market constraints. Seize opportunities, take the initiative, and consolidate the responsibilities of all parties involved, broaden sources of funds for risk disposal and capital replenishment, and accelerate the reform of small and medium banks. We will steadily advance the reform of rural credit cooperatives, adopt measures to local conditions and implement classified policies, and maintain the integrity of the local financial organization system. In particular, we must maintain the overall stability of rural credit cooperatives or rural commercial banks as legal persons in counties. Further optimize the insurance supervision mechanism, accelerate the reform of the use of insurance funds, strengthen the role of insurance in the disaster protection system, accelerate the development of catastrophe insurance, and promote the expansion of the third pillar of pension insurance.