Commercial Bank Performance Evaluation Welcome Regulations (Rui Finance)
Our reporter Li Jie
The performance evaluation system of China's commercial banks is undergoing major adjustments.
On January 4, the Ministry of Finance issued the "Notice on Printing and Distributing the Performance Evaluation Measures for Commercial Banks", which improved and revised the performance evaluation methods for commercial banks.
In the new evaluation system, new dimensions of serving national development goals and real economy are added, and the baton role of future performance evaluation will be further brought into play.
Four types of indicators are adjusted
Among the new regulations, the most significant is the adjustment of the indicator system.
Before the reform, the four categories of profitability, operating growth, asset quality, and solvency were adjusted to serve the national development goals and the real economy, development quality, risk prevention and control, and operating efficiency. The weight of each category is 25%, taking into account assessment Focus and balance the relationship.
Taking the newly added category of “serving the national development goals and the real economy” this time, it specifically includes: the situation of serving the ecological civilization strategy, the situation of serving the strategic emerging industries, the completion of the “two increases” of inclusive small and micro enterprise loans, and Four indicators for the completion of the “two controls” of loans to benefit small and micro enterprises.
In the "development quality" evaluation dimension, indicators such as economic value added, per capita net profit, and per capita tax paid are introduced to guide banks to accelerate the transformation of development methods, increase independent innovation, and improve input-output efficiency and value creation capabilities.
“Evaluation orientation is more focused on the comprehensive economic benefits of serving the country’s macro strategy, serving the real economy, and serving the micro economy.” The relevant person in charge of the Ministry of Finance said that this adjustment is based on the characteristics of commercial banks’ performance evaluation indicators and flexibly selects appropriate evaluation methods, which encourages Industry leadership also encourages self-transcendence; both reasonable consideration of regulatory goals and market principles also consider normal investor returns and shareholder concerns.
According to the new regulations, the performance evaluation index system of commercial banks remains relatively stable, and is dynamically adjusted in a timely manner based on objective conditions such as national macro policies, real economic needs, and financial development trends.
Financial management keeps pace with the times
Why is the new regulation introduced at this time?
According to the person in charge of the Ministry of Finance, the current performance evaluation method for commercial banks is one of the four (banking, insurance, securities, and other) evaluation categories in the financial enterprise performance evaluation system. It was established in 2009 and was revised in 2016. Commercial banks have played an important role in improving operating efficiency, improving asset quality, and insisting on stable operations.
"As my country's economic development enters a new normal, the limitations of the current commercial bank performance evaluation methods have gradually become prominent, and it is necessary to modify and improve them according to the new situation," said the person in charge.
On the one hand, the current evaluation system needs to be further improved to highlight the new concept of financial services to the real economy and financial services innovation and development; on the other hand, to meet the needs of the current economic development stage, while pursuing scale growth, it is necessary to pay more attention to the quality and efficiency of development .
In addition, this is also a need to protect the ability of banks to provide credit.
"At this stage, my country's financial system is dominated by indirect financing, with a relatively high proportion of credit financing and a relatively large consumption of capital. The three capital adequacy ratio indicators for solvency assessment in the current method are too high, which reduces the leverage of capital on credit. Efficiency is not conducive to the quality and efficiency of financial services in the real economy." The person in charge said.
In the view of He Daixin, head of the Financial Research Office of the Chinese Academy of Social Sciences, the adjustment is a manifestation of the advancement of financial management with the times, and aims to encourage commercial banks to better serve the micro-economy and real economy, and at the same time improve the capital operation of commercial banks Efficiency provides support for its stable operation and high-quality development.
Play the baton
According to the new evaluation method, the performance evaluation results of commercial banks will be expressed in evaluation scores, evaluation types and evaluation levels.
In the evaluation types, the overall performance of the company will be divided into five types according to the evaluation scores: excellent, good, medium, low, and poor.
After the financial department has reviewed and determined the performance evaluation results, it will promptly report back to the commercial bank, copy it to the organization and personnel department and the industry supervision department responsible for the comprehensive assessment and evaluation of the leadership team and the leaders of the commercial bank, and make it public in an appropriate manner.
Relevant persons in charge of the Ministry of Finance pointed out that this adjustment has made it more prominent that the evaluation results are linked to top management salaries, total corporate salaries, and leadership assessments. “Further improve the'salary and performance matching, incentives and constraints' mechanism, and effectively play the baton. effect".
"Through ex-ante incentives and ex-post constraints, the performance evaluation system will be further transmitted to the daily operation and management of commercial banks, which will help implement financial services to the real economy, improve the quality of development, and prevent and control risks." He Daixin told our reporter. Said.
According to the document, the new measures will come into effect on January 1, 2021.
In addition to commercial banks, other types of financial companies, such as sovereign wealth funds, policy-based financial companies, and other commercial financial companies such as securities, insurance, financial holding companies, and other commercial financial companies, have started to research and improve the performance evaluation system, and will be issued separately when mature Implement.
Before the implementation of the new measures, continue to implement the "Notice of the Ministry of Finance on Printing and Distributing the Measures for Performance Evaluation of Financial Enterprises".