China News Service, Beijing, August 13th. Guo Shuqing, Secretary of the Party Committee of the People’s Bank of China and Chairman of the China Banking and Insurance Regulatory Commission, said in an interview with the media that China’s banking industry is expected to dispose of non-performing loans of 3.4 trillion yuan (RMB, the same below). , Which has increased its efforts from last year’s 2.3 trillion yuan, and the disposal efforts will be even greater next year.
Guo Shuqing said that China's financial industry is currently operating smoothly, risks are overall controllable, and major indicators are within a reasonable range. Since the outbreak of the new crown pneumonia epidemic, the international financial market has experienced drastic fluctuations. In comparison, the Chinese stock, bond, and foreign exchange markets have shown strong resilience and anti-risk capabilities.
Data show that at the end of the second quarter, China's commercial banks had a liquidity coverage ratio of 142.4% and sufficient fund payment capacity; non-performing loan ratios were 1.94%, an increase of 0.08 percentage points from the beginning of the year; provision coverage ratios were 182.4%, capital adequacy ratios were 14.21%, and risk offsets Strong ability.
Guo Shuqing said that at the same time, it must be noted that current financial risks are still prone to high incidence, and some potential hidden dangers are still large, including stock risks that have not been completely resolved, rising pressure on non-performing assets, and market chaos under the background of loose funds are easy to rebound. Resurgence, etc., must remain sober, calmly judge, and take precautions.
"In the first half of the year, due to the new crown pneumonia epidemic and other factors, the newly formed non-performing loans of the banking industry increased compared to the same period last year. At present, the economy has not fully recovered, and the epidemic situation still has great uncertainty, and the financial risks brought by it are also With a time lag, it is expected that the risks of a considerable amount of loans will be exposed later, and there will be greater pressure on non-performing loans in the future." Guo Shuqing said.
He said that it is necessary to pay close attention to this, plan early and actively respond. The first is to categorize asset quality and urge banks to use the expected credit loss method to assess loan risks, and truly reflect changes in business operations. The second is to prepare enough "ammunition" to resist risks, requiring banks to take a variety of methods to replenish capital, increase provisioning in advance, and improve future risk resistance. The third is to increase the disposal of non-performing loans. Under the premise of fully revealing the risks, we will study the regulatory requirements for lowering the provision coverage ratio in stages, and release all resources for the disposal of non-performing loans. The fourth is to strictly control incremental risks, urge banks to strengthen internal control and risk management, and do a good job in the "three checks" of loans to reduce loan losses.
Guo Shuqing said that under the influence of the sudden epidemic, the sales of well-run companies were interrupted, orders were compressed, and the rebound of non-performing loans was inevitable. "Policies in all aspects of finance, banking, employment, and industry should be combined to provide assistance, and multiple methods should be used to support enterprises, so that our economic cycle will be more normal and easier." (End)