China Banking and Insurance Regulatory Commission: Small and medium-sized rural banks are not allowed to absorb large deposits from other places
China News Service, Beijing, May 20 (Reporter Wang Enbo) The head of the relevant department of the China Banking and Insurance Regulatory Commission said on the 20th that it will further promote the reform of small and medium-sized rural banks to reduce risks and continue to enhance their ability to serve the real economy.
Such banks are not allowed to absorb large deposits from different places, and are not allowed to issue loans to other places.
By the end of 2021, there are 3,902 small and medium-sized rural banks in China, and the overall development trend is improving.
The above-mentioned person in charge introduced that relevant parties have worked together to promote the disposal of high-risk rural small and medium-sized banks by increasing efforts to dispose of non-performing assets, introducing qualified shareholders, mergers and acquisitions, restructuring and integration, and upgrading to meet standards.
Since 2018, a total of 627 high-risk rural small and medium-sized banks have been disposed of, and non-performing loans of RMB 2.6 trillion have been disposed of, exceeding the sum of the previous 10 years.
From 2018 to 2020, the China Banking and Insurance Regulatory Commission also carried out a three-year special rectification of shareholders' equity, and intensified punishment on prominent issues such as illegal shareholding, manipulation of institutions' normal operations, and use of related-party transactions to transfer interests, and a total of more than 4,000 shareholders were restricted from voting rights. , ordered to transfer more than 6 billion shares of equity.
The person in charge pointed out that the risks of small and medium-sized rural banks are generally controllable and generally convergent.
However, from the perspective of stock, the historically accumulated risks in some regions are relatively large, and it is necessary to continue to increase their disposal efforts; from the perspective of increments, the risks brought about by the impact of the epidemic, economic transformation and industry changes will gradually emerge.
The sustainable development of small and medium-sized rural banks faces challenges.
Talking about how to reform the risk management of small and medium-sized rural banks in the next step, the person in charge mentioned that the source of funds for risk disposal will be expanded, and the deposit insurance fund, financial stability guarantee fund, etc. will be rationally used, and the "one bank, one policy" will prudently deal with key high-risk institutions to ensure risk. No spillover.
The main responsibility for risk disposal of small and medium-sized rural banks shall be consolidated, shareholders and creditors shall bear risk losses in accordance with the law, and moral hazard shall be strictly prevented.
At the same time, encourage high-quality banks, insurance companies and other qualified institutions to participate in the merger, acquisition and reorganization of small and medium-sized rural banks, implement support policies for encouraging the merger and reorganization of small and medium-sized banks in conjunction with relevant departments, and promote the merger, reorganization and regional integration of small and medium-sized rural banks in accordance with the principles of marketization and legalization.
The person in charge also emphasized that we should further optimize the positioning and supervision of supporting agriculture and small-scale banks, and urge small and medium-sized rural banks to stick to their main responsibilities and main businesses.
Adhere to the principle of credit funds originating from local sources, local use, and small-amount distribution, not to absorb large-amount deposits from other places, not to issue loans to other places, strictly control large-amount credit, and lower the focus of serving the local market.
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