(2020 Service Commission) Zhou Liang, Vice Chairman of China Banking and Insurance Regulatory Commission: Will prevent excessive financialization of the real estate market
China News Service, Beijing, September 6 (Reporter Wang Enbo) Regarding China's next step in preventing and deflating financial risks, Zhou Liang, vice chairman of the China Banking and Insurance Regulatory Commission, said in Beijing on the 6th that he would prevent excessive financialization of the real estate market.
The 2020 China International Service Trade Fair will hold the 2020 China International Finance Annual Forum on the same day.
Zhou Liang said at the meeting that the current risk resilience of China's banking industry and the solvency of the insurance industry are generally stable.
In the first seven months of this year, new RMB loans were 13.1 trillion yuan (RMB, the same below), an increase of 2.4 trillion yuan year-on-year; new bond investments in the banking and insurance industries were 5 trillion yuan; the insurance industry’s original premium income was 3 trillion yuan The compensation expenditure was 747.9 billion yuan, and the long-term equity investment increased by more than 18% year-on-year.
In addition, in the first half of the year, inclusive loans to small and micro enterprises increased by 28.4% year-on-year, far exceeding the average growth rate of various loans.
In the first 7 months, the banking industry added 1.6 trillion yuan in manufacturing loans, exceeding the increase in the whole year of last year.
Through measures such as lowering interest rates, reducing fees, and deferring loan repayments, the banking industry has reduced the burden of market players by 870 billion yuan.
At present, the non-performing loan ratio of commercial banks is 1.9%, the provision coverage ratio is 182.4%, and the capital adequacy ratio is 14.2%.
With the impact of the epidemic on the economy, some hidden risks in the financial sector have also emerged.
Zhou Liang said that the China Banking and Insurance Regulatory Commission will plan ahead, take precautions, and urge banks to replenish capital through multiple channels.
Implement asset quality classification, and increase provision in accordance with the expected credit loss method.
Intensify the disposal of non-performing assets. This year, the banking industry is expected to dispose of non-performing loans of 3.4 trillion yuan.
At the same time, the supervisory authority plans to improve the long-term mechanism for risk monitoring, early warning and prevention and control, and early identification, early warning, and early disposal of various risks.
Improve corporate governance of bancassurance institutions, strictly regulate shareholder equity management, and establish effective incentive and restraint mechanisms.
Consolidate the responsibilities of financial institutions, local governments, and financial management departments.
Zhou Liang emphasized that in the next step, the government will prudently handle high-risk small and medium-sized finances; strictly follow the positioning of “no real estate speculation” to prevent excessive financialization of the real estate market; implement new asset management regulations and requirements to prevent shadow banking from rebounding.
By cracking down on illegal activities, the bottom line of systemic financial risks is firmly kept.
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