China News Service, September 26. On the 26th, the WeChat public account of the "Central People's Bank" released "Preventing and Desolving Financial Risks and Improving the Long-term Financial Stability Mechanism". We fought the tough battle to prevent and defuse major financial risks, continued to promote and improve the long-term financial stability mechanism, and effectively responded to the complex and severe domestic and international situations and the impact of the COVID-19 epidemic. Safe and stable environment.
I. Important achievements have been made in preventing and defusing financial risks
First, decisively dispose of high-risk enterprise groups and high-risk financial institutions.
In accordance with the principles of marketization and the rule of law, "precise bomb disposal" is carried out on high-risk enterprise groups with large assets and liabilities such as "Tomorrow Group", "Anbang Group", "Huaxin Group", and HNA Group.
Resolutely took over 10 "Tomorrow Department" financial institutions including Baoshang Bank, all of which have been successfully completed so far.
Safely dispose of Bank of Jinzhou and promote its reform and reorganization, so as to prevent the spread of its risks across institutions and markets in a timely manner.
The risk disposal of key financial institutions such as Hengfeng Bank was successfully completed.
We will steadily promote the risk disposal of Huarong Company, successfully complete the capital increase and introduction, and promote its focus on the main business and the reduction of insurance.
Support and cooperate with relevant local governments to promote the reform of small and medium-sized financial institutions to reduce risks, and the number of high-risk small and medium-sized financial institutions has generally declined.
The second is to effectively reduce shadow banking risks.
In accordance with the requirements of "preventing risks, curbing chaos, and making up for shortcomings", new regulations on asset management and supporting implementation rules have been issued, the regulatory standards for asset management products have been unified, and the focus is on dismantling high-risk shadow banking business and cross-cutting financial products.
At the end of June 2022, the net value ratio of asset management products was 87%, an increase of 41 percentage points from the end of 2018.
The asset management business gradually returned to the source of direct financing, the risks of shadow banking continued to converge, and the industry’s transformation and development achieved tangible results.
The third is to comprehensively clean up and rectify the financial order.
The special rectification of Internet financial risks has been successfully completed, and nearly 5,000 P2P online lending institutions have been closed.
Continuing to crack down on domestic virtual currency trading speculation, China’s domestic bitcoin trading volume has dropped significantly in the world.
The clean-up and rectification of financial asset trading venues has achieved positive results, and the disorderly expansion and savage growth momentum have been effectively curbed.
We will further promote the special rectification of "pseudo-gold exchanges" and eliminate the regulatory vacuum.
Severely cracked down on illegal fund-raising. In the past five years, a total of 25,000 cases of illegal fund-raising have been investigated and dealt with.
2. Solidly promote the construction of a long-term mechanism for financial stability
The first is to continue to promote the construction of a financial institution system with a reasonable structure, distinct layers and differentiated competition.
Continue to promote large commercial banks to maintain a stable operation momentum, and constantly strengthen their risk resistance capabilities. Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank have become global systemically important banks. The scale of capital and assets has jumped to the forefront of the world, and the operating efficiency is close to the international advanced level. .
Fully implement the reform plan for policy-oriented and development-oriented financial institutions, promote policy-oriented and development-oriented financial institutions to adhere to their functional positioning, establish a modern financial enterprise system, continuously improve the organizational structure and governance structure, effectively enhance capital strength, promote business classification and account division, and play well It plays an important role in supporting key areas and weak links in the development of the national economy.
Guide small and medium-sized banks to return to their origins, deepen local development, and provide services, promote capital replenishment of small and medium-sized banks, and further enhance their risk resistance capabilities.
Steadily advance the deepening reform of rural credit cooperatives, support provinces (autonomous regions) to formulate reform plans for rural credit cooperatives, implement the central government's reform requirements for "fading out of administrative management" for provincial associations, and optimize and strengthen industry service functions according to local conditions.
The second is to continuously improve the financial risk monitoring, assessment and early warning system.
Strengthen the monitoring and assessment of systemic financial risks, comprehensively assess the soundness of my country's financial system, and release the China Financial Stability Report.
Since 2017, about 4,400 institutions have been rated as financial institutions by the central bank on a quarterly basis (divided into 1-10 grades and D grades). By evaluating their corporate governance, asset management, liquidity risk, market risk and other aspects, scientific . Reasonably evaluate the operation and management level and risk status of financial institutions, and guide financial institutions to operate prudently and prudently.
While continuing to resolve the risks of high-risk institutions (rated 8-10 and D), since the end of 2020, banks with financial institutions rated 1-7 by the central bank have been conducting risk monitoring and early warning on a quarterly basis, identifying emerging risks in a timely manner and taking measures Promoting the abnormal indicators of most banks to return to the normal level of the industry, so as to avoid potential risks from turning into real risks.
Since 2012, stress testing has been carried out on the banking industry for 11 consecutive years, covering about 4,000 banking financial institutions. In combination with the characteristics and development trends of my country's banking industry, a stress testing framework adapted to the domestic financial situation has been gradually established, forming a wide-area coverage. , a clear-level, content-rich stress testing system and a normalized working mechanism.
Use financial market stress index, stock pledge financing risk stress test, public fund liquidity risk stress test, insurance industry special stress test and other tools to timely monitor capital market, insurance industry risks and cross-market risk conditions.
The third is to implement and improve the deposit insurance system.
Since the promulgation of the "Regulations on Deposit Insurance" in 2015, my country's deposit insurance system has been implemented smoothly, and it has played an important role in protecting the "money bag" of the common people and promoting prudent operation of the banking industry.
At the end of June 2022, there were 4,018 insurance institutions nationwide.
The deposit insurance logo was put into use in an all-round way, the publicity of deposit insurance was effective, and the deposit insurance system gradually became popular among the people.
The risk differential rate mechanism has been continuously improved, early corrections have shown initial results, and hundreds of institutions have been pushed to withdraw from the list of problem insurance institutions.
Explore and give full play to the role of deposit insurance market-oriented and legalized disposal platforms, and support risk resolution in key regions and institutions.
Fourth, the establishment of a financial stability guarantee fund.
According to the relevant work arrangements of the central government, in 2022, the People's Bank of China, together with relevant departments, will accelerate the establishment of a financial stability guarantee fund.
The Financial Stability Guarantee Fund is positioned as a fund controlled by the central government to deal with major financial risks. Funds come from financial institutions, financial infrastructure and other market entities. It operates and cooperates with the Deposit Insurance Fund and related industry guarantee funds to jointly maintain financial stability and financial stability. Safety.
In the disposal of major financial risks, all parties including financial institutions, shareholders and actual controllers, local governments, deposit insurance funds and relevant industry security funds shall fully invest corresponding resources in accordance with the law and responsibilities.
If there is still a gap, the Financial Stability Guarantee Fund shall be used in accordance with the procedures upon approval.
At present, the basic framework of the Financial Stability Guarantee Fund has been initially established, and a certain amount of funds have been accumulated.
Fifth, make up for the shortcomings of the financial stability system.
Strengthen the PBOC's responsibilities for macro-prudential management and systemic financial risk prevention, carry out comprehensive statistics on the financial industry, issue institutional documents such as strengthening the supervision of financial holding companies and systemically important financial institutions, and coordinate financial infrastructure supervision.
The "Guiding Opinions on Strengthening the Supervision of Non-financial Enterprises Investing in Financial Institutions" was issued to prevent the cross-transmission of industrial risks and financial risks.
The "Administrative Measures for the Total Loss Absorption Capacity of Global Systemically Important Banks" was issued to improve the ability of global systemically important banks to serve the real economy and resist risks.
The "Notice on Regulating Matters Concerning Commercial Banks' Development of Personal Deposit Business through the Internet" was issued, requiring commercial banks not to conduct deposit business through non-self-operated online platforms, to handle existing business in a safe and orderly manner, and to settle the business that has been carried out when it expires.
Take the lead in drafting the Financial Stability Law and solicit public opinions from the public, strengthen the top-level design and overall coordination of the financial stability legal system, consolidate the responsibilities of all parties, and give full play to the role of the rule of law in consolidating fundamentals, stabilizing expectations, and benefiting the long-term.
Three, the next step work ideas
After three years of concentrated tackling, a number of urgent and overall risk points have been effectively dealt with, the situation of financial deviance from real to virtual and blind expansion has been fundamentally reversed, and financial risks have been generally converged and generally controllable.
At present, my country's financial system is generally sound, which is highlighted by the fact that the soundness of financial institutions remains at a relatively high level.
The total assets of my country's banking industry account for more than 90% of the total assets of the financial industry, and stable banking means financial stability.
By the end of 2021, the assets of banks within the rating safety boundary (level 1-7) of my country's central bank's financial institutions accounted for 98.9% of the total assets of the banking industry, of which 24 large commercial banks accounted for more than 70% of the assets of the banking industry. The key role of the "ballast stone" in the stability of the financial system.
The People's Bank of China will thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council, continue to do a good job in financial reform, development and stability, further consolidate the foundation of the financial stable operation system, and firmly hold the bottom line of no systemic financial risks.
The first is to implement classified policies according to the established plan, and continue to resolve the risks of key enterprise groups and financial institutions.
The second is to further promote and deepen the reform of financial institutions and improve the corporate governance structure.
The third is to promote the improvement of the effectiveness of supervision, continue to strengthen prudential supervision and behavioral supervision of the financial industry, and strengthen consumer and investor protection.
The fourth is to adhere to the combination of "treatment of existing diseases" and "treatment of pre-existing diseases", improve the financial risk prevention, early warning, disposal, and accountability system, and make up for the shortcomings of the financial risk prevention and resolution system.
(Zhongxin Finance)