High-quality banking services for the real economy

——Interview with Chen Weidong, Dean of the Bank of China Research Institute

  Our reporter Qian Qingni

  Since the 18th National Congress of the Communist Party of China, China’s banking industry has gained worldwide attention under the new environment where the supply-side structural reforms have continued to advance, the financial supervision system has become increasingly sound, the concept of green development has been deeply rooted in the hearts of the people, the digital economy has accelerated in an all-round way, and the financial opening has developed in depth Achievement.

Setting sail for the "14th Five-Year Plan", how will the banking industry move into the future?

A reporter from the Economic Daily interviewed Chen Weidong, Dean of the Bank of China Research Institute.

  Boost the real economy

  Reporter: What new achievements have the banking industry achieved under the leadership of the party?

What important role has it played in boosting the development of the real economy?

  Chen Weidong: Since the 18th National Congress of the Communist Party of China, China's economy has transformed from rapid development to high-quality development. The total economic volume has achieved new breakthroughs for many years, laying a solid foundation for the vigorous development of the financial market.

  Under the objective environment of economic downturn, interest rate liberalization, and financial disintermediation, the profitability of China's banking industry has continued to grow steadily, demonstrating strong vitality and resilience.

From 2012 to 2020, the net profit of commercial banks increased from 1.24 trillion yuan to 1.94 trillion yuan, with an average annual growth rate of 5.8%; in the first quarter of 2021, the net profit of commercial banks was 614.28 billion yuan, the growth rate since the new crown pneumonia Since the epidemic, it has turned from negative to positive, an increase of 2.4% year-on-year, and the profit has been repaired beyond expectations.

  The mission of the financial industry is to serve the real economy.

In recent years, the banking industry has optimized and adjusted credit investment, continued to increase support for key areas and weak links related to the national economy and people's livelihood, and achieved remarkable results in serving the real economy.

From the Beijing-Tianjin-Hebei region and the Yangtze River Delta region to the Guangdong-Hong Kong-Macao Greater Bay Area and the Chengdu-Chongqing region dual-city economic circle, major regional construction has injected new impetus into China's development. The banking industry is closely following the pace of regional strategies and continuously improving the level of financial services.

At the same time, the financial industry is actively involved in rural revitalization. From 2017 to 2020, the average annual growth rate of agricultural loans by financial institutions will be 8.0%.

In supporting the development of small and micro enterprises, the balance of loans for small and micro enterprises in the banking industry has increased from 14.8 trillion yuan at the end of 2012 to 42.7 trillion yuan at the end of 2020, with an average annual growth rate of 14.2%.

  Green finance is developing rapidly and actively participating in global green governance.

From 2015 to 2020, various policies on green finance in terms of standard setting, incentive mechanism, information disclosure, product innovation, etc. have been intensively implemented. The policy system that keeps pace with the times and a fair and orderly market environment provide the development of green finance in the banking industry. System guarantee.

  The cross-border financial service capabilities continued to improve, and the level of internationalization reached a new level.

The rapid development of RMB internationalization, the successive advancement of Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and Bond Connect, and the complete cancellation of QFII and RQFII investment quota restrictions have accelerated the internationalization and comprehensive transformation of the banking industry.

From the perspective of globalization, the coverage of overseas institutions in China's banking industry has expanded from 49 countries and regions in 2012 to more than 60 in 2020, covering five continents around the world, and the scale of overseas assets and operating income has doubled.

  Serve the domestic cycle

  Reporter: Unblocking the domestic cycle is an important content of the "14th Five-Year Plan". The core is to rely on the domestic market to expand domestic demand.

For the banking industry, what should be the focus of serving the domestic cycle?

  Chen Weidong: The banking industry should start with supporting infrastructure investment and financing needs, supporting rural revitalization strategies, and supporting new-type urbanization, so as to provide better financial services for smoothing the domestic cycle.

  Support infrastructure investment and financing needs, and consolidate the foundation for industrial development and transformation and upgrading.

Infrastructure is the foundation and carrier of the development of the real economy. In particular, the new infrastructure is pressing the "accelerator" for the digital economy. The banking industry should grasp the window opportunities brought by the new infrastructure to provide a full range of financial services for infrastructure construction.

The first is to clarify the key points of support and keep up with the construction of major national projects.

Focusing on key national projects and areas of national economy and people's livelihood, such as modern transportation, power grid and water conservancy infrastructure, urban and rural infrastructure, etc., increase credit allocation, increase the proportion of medium and long-term credit, and optimize the approval process with differentiated credit policies.

The second is to innovate financial products and provide comprehensive financial services.

Provide comprehensive and diversified financial services including capital construction loans, syndicated loans, industrial funds, and financial leasing for major national infrastructure projects; provide comprehensive financial services for "new infrastructure" including stocks, bonds, and loans.

The third is to strengthen cooperation with third parties such as the government and technology companies.

"New infrastructure" has higher requirements for technology. Banks can strengthen in-depth cooperation with technology companies to promote the integrated development of financial services.

  Support the rural revitalization strategy and promote the high-quality development of the county economy.

The 19th National Congress of the Communist Party of China made an important strategic plan for rural revitalization.

The county area is an important intersection of urbanization strategies and rural revitalization strategies, as well as an important area of ​​policy implementation for promoting green development, achieving common prosperity, and improving people's quality of life.

Since 2021, major documents such as the "Opinions on Financial Support for the Development of New Agricultural Business Entities" and "Measures for the Assessment and Evaluation of Financial Institutions Serving Rural Revitalization" have been issued. The banking industry must actively implement financial guidance policies and fiscal support policies to develop the "blue ocean" of the county economy. ".

  Support new-type urbanization and promote consumption to benefit people's livelihood.

The banking industry should play its role in resource allocation and provide strong capital guarantees for the construction of new urbanization.

On the one hand, we must improve the service system of financial institutions.

Deepen the reform of small and medium-sized banking institutions, guide local corporate banks to return to their roots, and effectively match the local financial needs of urbanization.

Further give play to the financial support role of large commercial banks, policy banks, and multi-level capital markets, and expand the channels for urbanization of financial services.

On the other hand, it is necessary to meet the financial needs of urbanization entities with diversified financial products, meet the needs of urbanized residents for financial services such as independent entrepreneurship, housing, medical care, and education, and provide enterprises with differentiated financing models and debt repayment mechanisms. .

In addition, it is necessary to enrich the sources of funds for urbanization construction, establish special funds for the construction of urbanization public service facilities and the construction of characteristic towns, and attract private capital to participate in the urbanization construction.

  Enhance the right to speak internationally

  Reporter: Based on the domestic cycle, coordinated promotion of the construction of a strong domestic market and a strong trade country is the new requirement of the "14th Five-Year Plan".

What are the requirements for the banking industry to serve the high-level external circulation?

  Chen Weidong: A high-level external circulation requires a sound cross-border financial service system and the ability to participate in the formulation of international rules to enhance international competitiveness and voice.

  The banking industry should grasp the new pattern of changes in the times, rely on the advantages of my country's large market, timely adjust and optimize financial business models and development strategies, and improve service quality and efficiency.

  The first is to insist on "based on China and serve the world."

Under the background of China's construction of a new higher-level open economic system and promotion of domestic and international dual cycles, make full use of opportunities such as the construction of free trade zones, the internationalization of RMB, and the China International Import Expo to dig deeper into "going out" and "bringing in" customers Global development needs to promote the construction of a strong domestic market and a strong trading country.

  The second is to promote the high-quality development of the “Belt and Road” initiative.

The bilateral economic and financial cooperation and two-way trade and investment between my country and the countries along the "Belt and Road" have been expanding, and my country's financial industry has played an important role in financial communication.

In the future, the "Belt and Road" common development and deepening cooperation will extend to the fields of public health, digital economy, green development, science and technology and education cooperation, and there is an urgent need for more abundant and diverse financial support.

  The third is to strengthen the compliance operation of foreign-related businesses.

The many risk changes contained in the global changes require China's financial industry to conduct careful assessment and dynamic adjustment of cross-border financial business in a timely manner.

It is necessary to make preparations for various risk management and control plans, strengthen early warning and forward-looking management of market risks and liquidity risks, and adjust cross-border business development strategies in a targeted manner.

  China has always actively participated in the reform and construction of the global governance system and promoted the development of the global governance system in a more just and reasonable direction.

To achieve this goal, the most important thing is to improve the ability to formulate and lead international rules.

The banking industry should strengthen its ability to formulate international rules in the financial sector, seize the two key areas of financial technology and green finance, and take a leading edge to master the international voice.

Grasp major opportunities such as the digital currency pilot zone and the trade finance blockchain platform, deepen the application of financial technology such as big data, blockchain, and artificial intelligence, accelerate the development of the digital economy with the construction of intelligent ecosystems and digital scene services, and actively participate in mergers and acquisitions. Leading the formulation of global digital rules.

In terms of green finance, China has first-mover advantages in various aspects such as systems, products, and international cooperation. It must continue to increase investment in funds, technologies, and resources in the green and low-carbon field, maintain its leading advantages in green credit and green bonds, and serve the world. Green governance contributes to China's plan, realizing the simultaneous development of rule-making and business development.

  ——Interview with Chen Weidong, Dean of the Bank of China Research Institute