Non-performing loans of banks have been stable with some decline, and asset management companies have exerted their functional advantages——

  Steady progress in disposal of non-performing assets

  Our reporter Lu Min

  The disposal of non-performing assets plays an important role in preventing and defusing financial risks and serving the economic transformation and adjustment.

At the recent press conference of the Central Propaganda Department, Xiao Yuanqi, vice chairman of the China Banking and Insurance Regulatory Commission, introduced the main measures taken to resolve non-performing assets and related risks.

According to reports, with the great progress in the disposal of non-performing assets, a total of 16 trillion yuan of non-performing assets has been digested in the past 10 years, and a large number of prominent hidden risks have been eliminated.

  What new policy measures have the regulatory authorities on the disposal of non-performing assets?

What are the best practices in the industry?

At present, what aspects need to be made to steadily advance the work related to the disposal of non-performing assets?

  Continue to intensify efforts to deal with

  Since the beginning of this year, the new crown pneumonia epidemic has spread in various places, and the macro economy has faced triple pressure. Many enterprises, especially small and micro enterprises and individual industrial and commercial households are facing difficulties in production and operation. .

At the beginning of this year, the person in charge of the relevant departments of the my country Banking and Insurance Regulatory Commission mentioned when disclosing the disposal of non-performing assets in the banking industry in 2021 that the non-performing loans of the banking industry showed a trend of steady decline. A year-on-year increase of 0.11 trillion yuan, a new record high.

  Accelerating the disposal of non-performing assets is one of the main measures to prevent and defuse risks, and it is also an important part of the credit risk prevention and control work in the banking industry.

The above-mentioned person in charge also stated that the China Banking and Insurance Regulatory Commission will urge banks to adopt the expected credit loss method, strictly classify loan quality, improve asset quality, and continue to increase the disposal of non-performing assets.

  In recent years, the regulatory authorities have actively promoted the resolution of non-performing assets and related risks.

In terms of large banks and joint-stock banks, as early as early 2021, the China Banking and Insurance Regulatory Commission issued a notice on the pilot work on the transfer of non-performing loans, allowing the pilot banks to carry out the batch transfer of personal non-performing loans and the transfer of single-family non-performing loans to the public.

Banks participating in the pilot program include 6 large state-controlled banks and 12 national joint-stock banks.

  Li Peijia, a senior researcher at the Bank of China Research Institute, believes that according to previous regulations, non-performing assets of personal loans cannot be transferred in batches, and non-performing assets of corporate loans can only be transferred in groups of three or more.

The regulatory measures have broadened the categories of non-performing asset transfers and also relaxed the threshold requirements for batch transfer of non-performing assets.

At the same time, the transfer of these two types of non-performing assets is no longer limited to asset management companies, financial asset investment companies can also participate, and local asset management companies can also participate in the batch transfer of personal non-performing loans across regions.

  With the introduction of the new regulations, relevant pilot banks have packaged relevant assets, and the disposal of non-performing assets has accelerated.

At the same time, the regulatory authorities launched a policy of "combination punch" for the disposal of non-performing assets.

Xiao Yuanqi introduced the relevant measures for the disposal of non-performing assets and risk mitigation of small and medium-sized banks in detail, including: insisting on the integrated promotion of reform and risk reduction, coordinating the promotion of the reform and risk reduction of small and medium-sized banks, focusing on corporate governance and mechanism construction, and focusing on cultivating small and medium-sized banks. The internal driving force for bank development and risk prevention and control, implement the responsibilities of all parties, adopt "one line, one policy" for individual key institutions, formulate plans for deepening reforms and risk mitigation; continuously increase efforts to dispose of non-performing assets.

In addition, all parties are required to implement the classification of non-performing assets of small and medium-sized banks, increase provision and disposal of non-performing loans, enrich disposal channels, and provide some policy support for small and medium-sized banks to dispose of non-performing loans.

In addition, it also includes promoting multi-channel replenishment of capital, improving corporate governance, strengthening technology empowerment, optimizing institutional layout, etc., and taking multiple measures to improve the ability of small and medium-sized banks to prevent and defuse risks.

  Play the role of asset management companies

  As the main body of the non-performing asset disposal market, asset management companies (AMCs) have received further attention.

At present, there are 5 nationwide AMCs in my country, namely China Huarong Asset Management Co., Ltd., China Great Wall Asset Management Co., Ltd., China Orient Asset Management Co., Ltd., China Cinda Asset Management Co., Ltd. and China Galaxy Assets Manage limited liability companies.

At the beginning of this year, the People's Bank of China and the China Banking and Insurance Regulatory Commission held a symposium in China Orient Asset Management Co., Ltd. to listen to relevant departments' reports on promoting the disposal of non-performing assets and mergers and reorganizations of small and medium-sized financial institutions, and to study the main focus of financial asset management companies on the disposal of non-performing assets. related policies and measures to help resolve financial risks.

  Under the guidance of regulation, national AMCs have taken action.

Since the beginning of this year, China Huarong has introduced 15 measures to "stabilize the economy, revitalize the stock, and reduce risks", proactively seize business opportunities, in bankruptcy and reorganization, the main and auxiliary divestiture of state-owned enterprises, the bailout of large entity enterprises, the foreclosure of assets, the acquisition of defaulted bonds, and the listing. It has played an active role in corporate bail-out and other fields; China Great Wall has done a good job in corporate bail-out and restructuring, and initiated the establishment of themed funds.

Focusing on the structural adjustment and industrial upgrading of the real economy, the divestiture of inefficient assets of central and state-owned enterprises and the restructuring of their main businesses, the resolution and integration and transformation of government platform debt risks, and the expansion of substantive restructuring businesses focusing on the rescue and bailout of troubled enterprises, etc. A project to serve the real economy and strategic emerging industries; China Cinda focuses on the main business, adheres to the main position of non-performing assets of banks, and actively expands the acquisition and disposal of non-performing assets of non-bank financial institutions. Actively participate in the reform and risk mitigation of some small and medium-sized financial institutions by means of capital and other means, and help maintain regional financial stability.

  At present, the real estate industry as a whole is under pressure.

According to a recent research report released by Bank of China Securities, the efforts and scope of non-performing asset investment institutions to participate in the current housing enterprise bailout have increased. Real estate companies connect with high-quality prospective buyers.

With the continuous introduction of the bailout policy, AMC may have more opportunities to participate in the future, to gain time and space for the bailout of the entire real estate industry, to promote the gradual clearing of the industry, and to achieve healthy and stable development.

  Local AMCs have also taken an active role in disposing of non-performing assets.

In order to speed up the acquisition and disposal of non-performing assets, local AMCs have launched a new round of capital increase and continue to accelerate the expansion of financing channels.

According to incomplete statistics, in the past two years, Hebei Asset Management, Zheshang Asset Management, Suzhou Asset Management and many other local AMCs have publicly announced capital increases.

Among them, Zheshang assets increased by 2 billion yuan, and China Resources Financial Holdings announced its acquisition of Chongqing Yukang.

In addition, Yun Investment Management, the only local AMC in Yunnan Province, achieved capital increase through mixed-ownership reform, and the scale of capital increase was not less than 3 billion yuan.

  It is worth noting that recently, Yuecai Holdings announced that it will increase its capital by 2.2 billion yuan to Yuecai Assets in the form of monetary funds.

According to public information, as the first batch of AMCs in the country and the first local AMC in Guangdong to obtain the qualification for the batch transfer and disposal of non-performing assets of financial enterprises, as of the end of May this year, the cumulative scale of assets under management of Yuecai Assets exceeded 263.7 billion yuan, and the scale of stock assets under management exceeded 137.1 billion yuan. .

Yuecai Holdings has increased its capital to Yuecai Assets five times successively, increasing the registered capital of Yuecai Assets from 100 million yuan at the beginning of its establishment to the current 7.2 billion yuan.

Through multiple capital increases, the capital strength of Yuecai Assets has been further enhanced. At present, among the 59 approved local AMCs across the country, the scale of registered capital of Yuecai Assets has jumped to the seventh place.

  Promoting to clear policy blockages

  In addition to the "Notice on the Pilot Work of Transfer of Non-performing Loans" and the "Implementation Plan for the Pilot Program of Bank Non-performing Loan Transfer" previously issued by the regulatory authorities, many places have also successively issued policies based on local actual conditions, and even clarified the specific task list to support financial institutions to speed up the disposal of non-performing assets. .

For example, the Beijing Office of the Banking and Insurance Regulatory Commission issued a notice requiring all legal entities to scientifically and reasonably allocate disposal authority, appropriately shorten the approval process, and improve the quality and efficiency of non-performing asset disposal.

  The person in charge of the relevant departments of the Beijing Bureau of China Banking and Insurance Regulatory Commission said that since the outbreak of the epidemic, the China Banking and Insurance Regulatory Commission has issued a number of relief policies to support enterprises affected by the epidemic through various methods such as deferred repayment of principal and interest, and loan renewal without principal repayment. .

The Beijing Bureau of Banking and Insurance Regulatory Commission continued to supervise banking institutions while doing a good job in the rescue of enterprises and individuals affected by the epidemic, while strictly controlling the quality of assets, using various methods to increase the disposal of non-performing assets, and promoting the continuous and stable improvement of asset quality.

  According to reports, on the whole, the asset quality of the banking industry within the jurisdiction of the Beijing Banking and Insurance Regulatory Bureau has remained stable.

At the same time, the provision coverage ratio of corporate banking financial institutions within the jurisdiction was 353.70%, which remained at a relatively high level.

  In order to achieve the goal of bailing out companies more effectively, the measures related to the disposal of non-performing assets must be made more efficient.

Liu Zhongrui, head of the Statistical Information and Risk Monitoring Department of the China Banking and Insurance Regulatory Commission, believes that financial risk disposal has entered a stage of normalization, and it is necessary to plan ahead and prepare various resource reserves for risk mitigation. Make some institutional arrangements for stability.

  Liu Zhongrui said that the China Banking and Insurance Regulatory Commission will continue to urge banks to strictly implement the prudent classification of financial asset risks, make sufficient provisions, and work with relevant departments to continue to optimize the disposal of non-performing assets, expand disposal channels, and expand the transfer of single-family corporate non-performing loans and batch personal non-performing loans. Transfer the scope of pilot projects, formulate policies and measures for small and medium-sized banks to dispose of non-performing assets, guide banks to take advantage of high provisions, and increase the write-off and disposal of non-performing assets.

At the same time, the China Banking and Insurance Regulatory Commission will actively cooperate with the People's Bank of China, accelerate the research and improvement of relevant regulations and institutional arrangements, promote the establishment of a financial stability guarantee fund as soon as possible, and accumulate backup funds for the disposal of major risks.

  Industry insiders suggested that restrictions should be further relaxed to encourage AMC to participate in business related to the disposal of non-performing assets.

Previously, in the process of resolving debt risks for real estate companies, AMC played a more role in promoting debt rollover and capital injection, and mainly focused on acquiring debt.

Through policy promotion, the scope of participation has been expanded and the intensity has been increased, but its related business still has a lot of room for expansion.

  In this regard, the regulatory authorities are also making steady progress.

In the first half of this year, Orient Assets and Great Wall Assets and Real Estate have received regulatory approvals one after another for the rescue of financial bonds.

Orient Asset's 10 billion yuan financial bond was successfully issued in March, and Orient Asset became the first AMC to issue real estate bailout financial bonds.

In the same month, Great Wall Assets successfully issued 10 billion yuan of financial bonds.

Two AMCs stated that the issuance of financial bonds is mainly used for the risk resolution and disposal of high-quality projects of key real estate companies, the relief of non-performing assets in the real estate industry, and the resolution of financial risks in real estate and other related non-performing asset main businesses.

  For AMC, bailing out businesses is both a challenge and an opportunity.

Gao Gan, assistant to the president of China Huarong, said that as the real estate industry enters a new stage of cyclical adjustment, business opportunities for non-performing assets related to debt resolution of real estate companies have surged, which will bring more sources of non-performing asset acquisitions and business opportunities for the company.

A number of AMCs have recently launched measures to bail out real estate companies. The person in charge of the relevant business also said that they will stick to their main responsibilities and main businesses, continue to enrich the means of disposing of non-performing assets, and seize opportunities to actively participate in risk resolution to help stabilize the overall economic market.

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