The non-performing loan ratio at the end of 2020 was 1.92%, a decrease of 0.06 percentage points from the beginning of the year. The
banking industry and the insurance industry maintained a steady operation trend (Rui Finance)
On January 22, the State Council Information Office held a press conference on the reform and development of the banking and insurance industry in 2020. The relevant person in charge of the China Banking and Insurance Regulatory Commission introduced the reform and development.
Liang Tao, vice chairman of the China Banking and Insurance Regulatory Commission, said that 2020 is an extraordinary year in history. China’s banking and insurance industries have worked hard to overcome the impact of the new crown pneumonia epidemic, and steadily responded to various risks and challenges, and continued to maintain a good momentum of stable operation and reforms. New achievements have been made in development.
Steady operation in good shape
From the perspective of important indicators, China's banking and insurance industry will operate steadily in 2020, which is mainly reflected in the following aspects:
Assets, liabilities and business have grown steadily.
At the end of 2020, the total assets of banking financial institutions were 319.7 trillion yuan, a year-on-year increase of 10.1%.
The total debt was 293.1 trillion yuan, a year-on-year increase of 10.2%.
The total assets of insurance companies were 23.3 trillion yuan, a year-on-year increase of 13.3%; the original insurance premium income was 4.5 trillion yuan, a year-on-year increase of 6.1%; the balance of insurance fund utilization was 21.7 trillion yuan, a year-on-year increase of 17%.
The quality and efficiency of serving the real economy continued to improve.
In 2020, RMB loans increased by 19.6 trillion yuan, an increase of 2.8 trillion yuan year-on-year.
Private enterprises and manufacturing loans increased by 5.7 trillion yuan and 2.2 trillion yuan respectively.
Inclusive loans for small and micro enterprises, loans for scientific research and technology services, and loans for information technology services increased by 30.9%, 20.1%, and 14.9% respectively.
New bond investment by bancassurance institutions was 9.5 trillion yuan.
The insurance industry provided 8710 trillion yuan in insurance coverage, a year-on-year increase of 34.6%; compensation expenditures were 1.4 trillion yuan, a year-on-year increase of 7.9%.
The main business and risk indicators are in a reasonable range.
In 2020, the banking industry will dispose of a total of 3.02 trillion yuan of non-performing assets.
As of the end of 2020, the balance of non-performing loans was 3.5 trillion yuan, an increase of 281.6 billion yuan from the beginning of the year; the non-performing loan ratio was 1.92%, a decrease of 0.06 percentage points from the beginning of the year; the ratio of loans overdue for more than 90 days to non-performing loans was 76%, a decrease of 5.1 percentage points from the beginning of the year .
The overall liquidity of bancassurance institutions remained stable. The liquidity coverage ratio of commercial banks was 146.5%, and the cash flow from operating activities of insurance companies increased by 106.5% year-on-year.
Enhance risk resistance through multiple channels.
In 2020, 1.34 trillion yuan of commercial bank capital will be supplemented through the issuance of preferred stocks, perpetual bonds, and tier 2 capital bonds. The banking industry has made new provisions of 1.9 trillion yuan, an increase of 113.9 billion yuan year-on-year.
At the end of 2020, the provision coverage ratio was 182.3%, and the loan provision ratio was 3.5%, both maintaining a relatively high level.
At present, the comprehensive solvency adequacy ratio of insurance companies is 242.5%, and the core solvency adequacy ratio is 230.5%.
Enhance risk resistance
Xiao Yuanqi, chief risk officer and spokesperson of the China Banking and Insurance Regulatory Commission, said at the press conference that in order to enhance the risk resistance of bancassurance institutions, the regulatory authorities have taken many measures, such as requiring banks to introduce strategic investors, issue secondary capital instruments, and issue Replenish capital by means such as perpetual bonds.
"It is precisely because of the deployment and various measures taken from the beginning, the bancassurance institution, whether it is a single point, regional or systemic risk, is at a very controllable level." Xiao Yuanqi Say.
In terms of stock risk disposal, in 2020, the entire industry has disposed of 3.02 trillion yuan of non-performing assets through various forms such as collection, write-off, and transfer. This is unprecedented in intensity and the amount is also the highest in history.
At the same time, the China Banking and Insurance Regulatory Commission has conducted more stringent investigations on high-risk institutions, and the risks of Baoshang Bank, Jinzhou Bank, Hengfeng Bank, some trust companies and some insurance institutions have been effectively resolved.
In terms of risk prevention in key areas, China has established a comprehensive and comprehensive statistical system for real estate financing.
In the early stage, the China Banking Regulatory Commission and the People's Bank of China jointly issued a notice on the concentration management of real estate financing. If the amount of real estate risk exposure exceeds a certain percentage of net capital, relevant measures will be taken.
At the same time, the regulatory authorities also pay close attention to the changes in housing prices in different regions and cities, and take corresponding measures together with other departments and local governments.
At the same time, the China Banking and Insurance Regulatory Commission also attaches great importance to the corporate governance reform and supervision of bancassurance institutions, and insists on improving corporate governance as an important starting point for bancassurance institutions to strengthen risk prevention and control and achieve high-quality development.
Better serve the development of private enterprises
As of the end of 2020, the national private enterprise loan balance was 50 trillion yuan, a year-on-year increase of 14%, and the inclusive small and micro enterprise loan balance was 15.3 trillion yuan, which was 18.1 percentage points higher than the growth rate of various loans.
But at the same time, the problem of financing difficulties for private enterprises, especially private small and micro enterprises, still exists.
In this regard, Liang Tao said that private enterprises are a huge group of enterprises, covering all areas of the national economy, including large and medium-sized enterprises as well as small and micro enterprises.
Some large and medium-sized private enterprises have encountered financing difficulties. Some are due to imperfect corporate governance and unclear property rights; some are unilaterally pursuing groupization and diversification and deviating from their main business; still others are unreasonable financing structures and lack of overall planning for funding sources and cost periods Consider that the slightest operation carelessness or market volatility will cause tension in the capital chain.
Liang Tao said that financing by private small and micro enterprises with higher risks is a worldwide problem that needs to be mobilized from the whole society to study and solve them.
In the next step, the China Banking and Insurance Regulatory Commission will further improve system measures, promote policy implementation, and support the healthy development of private enterprises.
For private enterprises with prominent main businesses, sound financials, and good creditworthiness for major shareholders and actual controllers, banking institutions are required to insist on reviewing the first source of repayment, reduce excessive reliance on mortgage guarantees, and increase credit loans; for advanced manufacturing , Strategic industries and private technology-based enterprises that are independently controllable in the supply chain of the industrial chain. Encourage bancassurance institutions to substantially increase medium- and long-term financial support, and support key core technology breakthroughs, basic research, and transformation of results; there is a need to optimize and upgrade directions in line with the economic structure. Private enterprises with certain competitiveness but temporarily encountering difficulties shall not blindly stop lending, suppress lending, and draw out loans, and provide necessary financing support to help enterprises maintain and resume normal production and operation...
"Faced with the complex and changeable international and domestic economic situation, financial institutions will always adhere to the original mission of serving the real economy, promote the construction of a community of shared future for banks and enterprises, and work together with private enterprises, thrive and develop together," said Liang Tao.
Wang Junling
Wang Junling