China News Service, Beijing, March 2 (Liu Liang) Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, said at a press conference on the 2nd that under the epidemic, business operations and loan repayment are difficult, and the increase in non-performing loans in the banking industry will become an inevitable trend, but he is confident, Ability to deal with bad assets.

　　He said that in 2021, the disposal of non-performing loans in the banking industry will remain unchanged.

"Because our annual loan growth is a net increase, the loan growth rate will remain about 12%. The situation in 2020 is very special, the growth rate is very fast, the volume is very large, but the whole year did not exceed 13%."

　　He bluntly said that after the outbreak of the epidemic, the production and operation activities of some enterprises were in an abnormal state, and even a considerable number of enterprises may face bankruptcy reorganization or bankruptcy liquidation, and they are not able to repay loans, so the increase in non-performing loans is an inevitable trend.

　　"In fact, in 2020, we have already begun to increase our efforts to dispose of non-performing loans, disposing of non-performing assets of 3.02 trillion yuan (RMB, the same below)." He pointed out that there is no clear indicator at the moment, and the China Banking and Insurance Regulatory Commission is also working with various parties. However, he also said that the non-performing loans that need to be disposed of in 2021 will continue to increase, and will even extend to next year, because some loans have a relatively long term.

　　"However, we are confident and capable of handling non-performing assets." He emphasized that in the future, we will intensify efforts and make progress while maintaining stability to ensure that it is within the tolerance of the economy and the banking and financial system.

　　What is the current situation of major banks' disposal of non-performing loans?

The Chairman of the Agricultural Bank of China Gu Shu revealed at the meeting that under the guidance of the China Banking and Insurance Regulatory Commission, the Agricultural Bank of China continued to increase its efforts to dispose of non-performing loans. In 2020, it has overcome the impact of the epidemic, disposed of high non-performing loans, and maintained the stability of credit asset quality.

　　"Despite the impact of the entire epidemic and economic fluctuations, the asset management level of China's commercial banks has continued to improve in recent years." He cited the Agricultural Bank of China as an example. From the agricultural bank samples, the risk of rebound of non-performing loans still exists due to the impact of the epidemic. But I believe that under the guidance of the China Banking and Insurance Regulatory Commission, this risk is still basically controllable.

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