China News Service, July 21st. On the 21st, at the press conference on the operation and development of the banking and insurance industry in the first half of 2022 held by the State Council Information Office, a reporter asked a question about the reform of small and medium-sized banks. Qi Xiang, director of the legal department, said in response to a reporter's question that the overall operation of small and medium-sized banks in my country is stable and the risks are controllable.

　　At present, the total assets of small and medium-sized banks are 96 trillion yuan, accounting for 29% of the total assets of the banking industry.

Among them, the "three rural" loans and small and micro enterprise loans of small and medium-sized banks accounted for 39% and 46% of the banking industry, respectively, and the proportions were quite high.

They have made positive contributions to serving the private sector, small and micro enterprises, serving the community, promoting rural revitalization, and supporting the high-quality development of the national economy.

Due to various historical reasons, small and medium-sized banks have also accumulated some risks and have received widespread attention from the society.

　　Since the beginning of this year, the China Banking and Insurance Regulatory Commission has firmly adhered to the general tone of seeking progress while maintaining stability, and steadily promoted the reform of small and medium-sized banks to reduce risks.

Mainly carried out the following aspects of work:

　　One is to improve corporate governance.

Promote the organic integration of party leadership and corporate governance. At present, most small and medium-sized banks have established a leadership system of "two-way entry and cross-serving".

Strengthen the supervision of shareholders' equity, promote the introduction of qualified shareholders, remove problem shareholders, and optimize the equity structure.

The China Banking and Insurance Regulatory Commission is also carrying out special rectification of normalized equity and related-party transactions, focusing on cracking down on illegal shareholders and executives who have hollowed out small banks.

　　The second is to promote the deepening of reforms.

Deepen the reform of rural credit cooperatives, and speed up the reform process in accordance with local conditions and the principle of "one province, one policy".

In April this year, Zhejiang Rural Commercial Union Bank officially opened, marking that the reform of rural credit cooperatives focusing on the reform of provincial cooperatives has entered a substantive stage of advancement.

　　The third is to steadily promote risk management.

The China Banking and Insurance Regulatory Commission continued to determine the actual risk base of small and medium-sized banks, and vigorously promoted the disposal of non-performing assets.

In the first half of the year, small and medium-sized banks disposed of non-performing loans of 594.5 billion yuan, an increase of 118.4 billion yuan over the same period of the previous year.

The regulatory authorities also support mergers and acquisitions, optimize market layout, and enhance the development momentum of small and medium-sized banks.

In particular, promote the "one province, one policy" and "one bank, one policy" approach to resolve the risks of small and medium-sized banks.

For example, the China Banking and Insurance Regulatory Commission approved the Central Plains Bank, and merged Luoyang Bank, Pingdingshan Bank and Jiaozuo China Travel Bank, which marked a phased progress in risk resolution for city commercial banks.

　　The fourth is to replenish capital through multiple channels.

Capital is an important line of defense for banks to resist risks.

Since the beginning of this year, the China Banking and Insurance Regulatory Commission has actively cooperated with the Ministry of Finance and the People's Bank of China to accelerate the issuance of special bonds by local governments to supplement the capital of small and medium-sized banks.

In the first half of the year, with the approval of the State Council, a quota of 103 billion yuan has been allocated to Liaoning, Gansu, Henan and Dalian provinces (municipalities). Various types of social capital, including foreign capital, can improve the capital level and quality of small and medium-sized banks.

　　Qi Xiang said that, in general, the overall operation of small and medium-sized banks in my country is stable, and the risks are controllable.

In response to the risks exposed by individual institutions, the China Banking and Insurance Regulatory Commission will continue to implement the decisions and arrangements of the Party Central Committee and the State Council, and deeply understand the political and people-oriented nature of finance.

The China Banking and Insurance Regulatory Commission will adhere to the supervision for the people, promote the risk management of small and medium-sized banks in a stable and orderly manner, and effectively ensure the safety of the people's financial properties, so as to satisfy the people and reassure the society.

(Zhongxin Finance)