China News Service, September 22. According to the “People’s Bank of China” WeChat public account on the 22nd, the Central Bank’s Macro-Prudential Administration released an article entitled “Improving the Macro-prudential Policy Framework with Chinese Characteristics to Consolidate the Defense Line of Systemic Financial Risks”, which mentioned So far, the additional supervision of systemically important financial institutions has achieved positive results.
First, banks are more proactive in capital management.
As of the end of June 2022, all systemically important banks can meet the additional capital and leverage ratio requirements, with an average core tier 1 capital adequacy ratio of 10.7%, an increase of 0.14 percentage points year-on-year and 0.6 percentage points higher than the banking industry average.
Second, a "living will" is generally formulated.
All systemically important banks have submitted recovery plans and resolution plans as required, and prepared response plans in advance in the event of major risks, improving the disposability of risks.
Third, risk management is more prudent.
Systemically important banks have generally strengthened the requirements for information reporting and disclosure, risk management, and corporate governance, and formulated internal management regulations for systemically important banks.
As of the end of June 2022, the average NPL ratio of the 19 systemically important banks was 1.33%, lower than the level of the same period of the previous year, and the provision coverage ratio was 240%, an increase of 15.6 percentage points year-on-year.
(Zhongxin Finance)