Strengthen the economic body and smooth the financial blood
Our reporter Qian Qingni Guo Ziyuan
As an important part of my country's financial system, the banking industry has undergone historic changes under the leadership of the party and achieved leapfrog development.
Since the 18th National Congress of the Communist Party of China, the effectiveness of my country's banking industry in serving the real economy has continued to improve.
Looking forward to the "14th Five-Year Plan", the banking industry should provide strong support for building a new development pattern, better serve the real economy, better meet the people's growing needs for a better life, and better serve the country's major strategies.
The economy is the body, and finance is the blood. The two coexist and prosper together.
Under the leadership of the Communist Party of China, my country's financial industry has made great achievements.
As an important part of my country's financial system, the banking industry has undergone historic changes and achieved leapfrog development under the leadership of the party.
Since the reform and opening up, especially since the 18th National Congress of the Communist Party of China, with the rapid development of my country’s economy, the banking industry has actively deepened reforms and achieved remarkable results: the scale of assets ranks first in the world, the operating capabilities are steadily among the world’s top, and gradually realized Make a strong transformation and move towards a new stage of high-quality development.
Symbiosis and prosperity with the real economy
The entity has deep roots and the financial leaves.
Support key areas of the national economy, increase the proportion of manufacturing loans, deepen inclusive financial services, help alleviate poverty, improve systems and mechanisms for financial service technological innovation...Since the 18th National Congress of the Communist Party of China, facing new situations and new requirements, my country’s banking industry The effectiveness of serving the real economy continues to improve.
One of the prerequisites for achieving the above achievements is to complete the institutional reform of the banking industry itself.
Looking back at history, my country's banking industry has passed through the three key stages of professional banks, commercial banks, and stock reform and listing, and is currently striving for a high-quality development stage.
Judging from the results of the reform, there are more than 20 types of financial institutions in my country's banking industry, forming a diversified and widely-covered institutional system.
On the one hand, national commercial banks such as state-owned large banks, joint-stock banks, and policy banks continue to play a prominent role; on the other hand, urban commercial banks, rural cooperative financial institutions, and village banks focus on serving communities and small and micro enterprises. And intensive cultivation in areas such as "agriculture, rural areas and farmers".
"The nature of socialism with Chinese characteristics determines that our finance must be oriented towards hundreds of millions of people." Guo Shuqing, Secretary of the Party Committee of the People’s Bank of China and Chairman of the China Banking and Insurance Regulatory Commission, stated at the “Financial Street Forum” in 2020 that as of now, China’s basic financial services 99% of the population has been covered, and the coverage of bank outlets in towns and townships has reached 96.6%; the country has 8.06 bank accounts and 6.01 bank cards per capita, and individual settlement accounts opened in rural areas account for 40% of the country’s total; it is worth noting that the whole country Two-thirds of small, medium and micro enterprises, tens of millions of individual industrial and commercial households and ordinary farmers can obtain bank loans.
The latest regulatory data show that as of the end of March 2021, the loan balance of banking financial institutions for small and micro enterprises reached 45.7 trillion yuan, of which the balance of inclusive small and micro enterprise loans with a single-account credit of 10 million or less was 168,000. 100 million yuan, a year-on-year growth rate of 33.9%.
While "increase and expansion", my country's banking industry has also achieved "cost reduction."
Statistics from the People's Bank of China show that the weighted average interest rate of RMB loans in my country's financial institutions has dropped from 8.01% at the end of 2011 to 5.03% at the end of 2020, a significant drop.
In the face of the sudden impact of the new crown pneumonia epidemic, my country's banking industry is actively making use of the real economy.
As of the end of December 2020, my country's financial system has achieved the goal of "a reasonable profit distribution of 1.5 trillion yuan to various enterprises for the whole year of 2020" as scheduled.
2021 is the first year of the "14th Five-Year Plan". Next, the banking industry must provide strong support for the establishment of a new development pattern.
It is necessary to fully support the domestic and international dual cycle, actively explore various financial services that promote technological innovation, continue to promote the expansion of domestic demand, and promote the consolidation and expansion of poverty alleviation results and the effective connection of rural revitalization; at the same time, strengthen comprehensive financial services in the field of foreign trade and actively develop green credit, Green insurance, green trust, etc.
Add a touch of "green" to finance
On June 3, Bank of Shanghai successfully issued the first structured deposit product linked to the “carbon neutral” bond total yield index for corporate customers. This product is based on the carbon neutral bond total yield index compiled by the Shanghai Clearing House. This index was used for the first time in the design of structured deposit products.
The use of diversified financial products has become the new normal for banks' green financial services.
Since the 18th National Congress of the Communist Party of China, under the guidance of the concept of "green water and green mountains are golden mountains and silver mountains", my country's green finance has continued to develop rapidly, and it has become the first country in the world to establish a relatively complete green financial policy system.
The green finance market system is gradually improving, product types are becoming more abundant, and the scale of business is growing rapidly. At present, my country's domestic and foreign currency green credit stocks rank first in the world, and the stock of green bonds ranks second in the world. The development of green finance is at the forefront of the world. Become an important contributor and promoter of global green financial governance and development.
In the process of promoting the development of green finance, policy banks and large state-owned banks are undoubtedly the main force.
According to the annual report statistics, between 2016 and 2020, the green credit balance of the four major industrial and agricultural banks increased from 3 trillion yuan to 5.6 trillion yuan, with an average annual growth rate of 17%, far exceeding the average annual growth of 10% in loan balances over the same period. speed.
In 2020, the four major banks will raise green finance to a strategic height, formulate green finance development strategies, and improve the long-term mechanism for green finance development.
"The banking industry actively supports the green development of the economy, and has played an active role in the fight against service pollution, the transformation of economic structure and the transformation of development momentum," said Lou Feipeng, a researcher at China Postal Savings Bank.
Not only that, green finance has also improved the risk control system of commercial banks.
The relevant person in charge of the Industrial Bank said that since the first adoption of the Equator Principles in 2008, the bank has actively promoted the localization of the Equator Principles.
"It is precisely relying on this advanced environmental and social risk management system that since the 18th National Congress of the Communist Party of China, Industrial Bank's green finance has maintained a rapid development trend. The green credit non-performing rate is about one-fourth of the bank's average non-performing asset rate, becoming a stable An important grasp of asset quality." The person in charge said.
Looking to the future, it is the consensus of the industry that green finance will usher in historic development opportunities.
To achieve the goal of carbon peak and carbon neutrality, one hundred billion yuan of investment is required. As an important tool for coping with climate change and achieving carbon neutrality, green finance will usher in a broad space for development, and climate investment and financing will increasingly become the green banking industry. An important area of financial development.
Technology powers financial services
More than 5,000 credit officers in the bank, each with a tablet computer, go deep into the fields and the production line of the enterprise, through the inclusive financial service mobile workstation real-time access to the system and remote collaboration, to handle the whole process of business for small and micro customers.
This is a feature that Bank of Taizhou has fully utilized the advantages of “sinking of outlets” and “deeply plowing into the villages and cultivating the industry” of the credit staff, and the integration of on-site services and credit investigation technology with online financial technology. Micro-credit services.
Since the 18th National Congress of the Communist Party of China, the social economy has developed rapidly, information technology has evolved, and the wave of digitization has swept across. my country's banking industry has actively embraced changes and promoted the development of financial technology in an all-round way.
Emerging technologies represented by big data, blockchain, cloud computing, artificial intelligence, etc. continue to integrate with financial services, and financial technology has further highlighted the empowerment effects of the banking industry.
Data shows that from 2016 to 2020, the banking industry’s investment in science and technology has risen from 113.5 billion yuan to 207.8 billion yuan, an average annual increase of 16.3%. It is used to build online service channels, improve product supply, reduce management costs, optimize financing structures, and improve intelligence. The risk control system realizes intelligent services in all channels, all scenarios, and all processes.
Banking financial institutions actively follow the trend of economic and social digital transformation, and continue to explore new results.
Zheng Yang, Secretary of the Party Committee and Chairman of Shanghai Pudong Development Bank, said that in July 2018, the bank launched the "API Bank" (Unbounded Open Bank) for the first time in the industry, which opened the prelude to the construction of domestic open banks.
As of the end of 2020, Shanghai Pudong Development Bank has released more than 1,000 API services, connected to more than 14,000 customers, and formed a new industry-leading open banking development model in multiple fields.
It is worth mentioning that the new crown pneumonia epidemic in 2020 has accelerated the digital transformation of financial institutions. The banking industry has taken the lead in launching "contactless" financial services with the help of financial technology to meet the dual needs of epidemic prevention and control and customer service. The total investment in information technology has made breakthroughs. 200 billion yuan, a year-on-year increase of 20%.
As of the end of 2020, 12 banks have successively established financial technology subsidiaries to export business as the center of the parent bank, strengthen the linkage and coordination with the parent bank, and continue to improve market acumen, product innovation capabilities, and policy flexibility. Participate in market-oriented competition with Internet companies and technology companies.
Lou Feipeng said that looking forward to the "14th Five-Year Plan", the banking industry needs to better serve the real economy, focus on better satisfying the people's growing needs for a better life, and better serve the implementation of major national strategies.
The application of modern information technology should be strengthened to better satisfy the individualized and differentiated financial services of various economic entities.
Build a "firewall" for financial risks
Preventing risks is the eternal theme of financial work.
In the "three tough battles", preventing and resolving major risks ranks first, which includes preventing and resolving financial risks, and banking risks are precisely the top priority.
Since the 18th National Congress of the Communist Party of China, there have been three main paths for my country's banking industry to prevent and defuse risks.
The first is to prevent and defuse credit risks such as non-performing loans, increase efforts to dispose of non-performing loans, and at the same time take precautions and raise sufficient provisions to "compensate with abundance" during the economic upturn; the second is to vigorously rectify market chaos, such as shadow banking, P2P network lending risks, etc.; the third is to accelerate the promotion of the disposal of high-risk institutions, such as Baoshang Bank, and continue to improve the corporate governance of banking institutions to prevent regional and systemic risks.
At present, after a three-year battle to resolve major financial risks, some of the risks faced by the banking industry in the past have shown a trend of convergence.
First, risks in key areas have been dealt with in an orderly manner. As of the end of 2020, the growth rate of real estate loans has been lower than that of various loans for the first time in eight years; the banking industry has cooperated with local party committees and governments to resolve the debt risks of large enterprise groups.
Secondly, after rectification, the scale of my country's shadow banking has dropped by 20 trillion yuan from the historical peak, but the stock of shadow banking is still large, and it is easy to rebound with a little carelessness.
Next, we must strictly prevent the resurgence of shadow banking and prevent financial institutions from increasing leverage again through intersecting financial products. The new tricks of various "quasi-credit" must be contained in the initial stage.
Third, the risk incidents of small and medium-sized institutions have been properly handled, and the supervision of corporate governance has been highly valued.
At present, the China Banking and Insurance Regulatory Commission has carried out special rectification of equity and related-party transactions, "Looking Back" and "Fruit Capital and Shareholders" investigations, covering more than 4,600 legal entities, investigating more than 3,000 equity violations, and opening them to the public in two batches A list of 47 shareholders with serious violations of laws and regulations.
It should be noted that due to the implementation of principal and interest extensions for loans to small, medium and micro enterprises affected by the epidemic, it is expected that a certain percentage of loans will eventually become non-performing loans.
At the Lujiazui Forum in 2021, Guo Shuqing said that in order to actively respond to the rebound in non-performing assets, banking institutions must be urged to classify assets, increase provisioning, and ensure that non-performing assets can be disposed of faster and more.
With the promotion of regulatory agencies, banking institutions have now included all loans overdue for more than 90 days into non-performing loans. The ratio of loans overdue for more than 90 days in the banking industry to non-performing loans has dropped from 102.6% at the end of 2016 to 81.9% at the end of September 2020. .
Preventing and resolving financial risks are only in progress.
Many experts said that next, my country’s banking industry needs to firmly hold the bottom line of preventing systemic risks, proactively respond to the rebound of non-performing assets, advance the risk resolution of high-risk financial institutions in an orderly manner, continue to dismantle high-risk shadow banking business, and severely crack down Illegal financial activities, resolutely rectify various financial chaos, and at the same time strictly prevent external imported risks.
Our reporter Qian Qingni Guo Ziyuan