According to the data released by the China Banking and Insurance Regulatory Commission, at the end of 2021, the non-performing loan ratio of commercial banks was 1.73%, and the overall asset quality was better. Meanwhile, in 2020 and 2021, the disposal scale of non-performing assets in the banking industry has exceeded 3 trillion yuan for two consecutive years. Experts predict that in 2022, the banking industry will comprehensively use various disposal tools to further strengthen the disposal of non-performing loans.
asset quality is generally good
According to the data of the CBRC, at the end of the fourth quarter of 2021, the balance of non-performing loans of commercial banks was 2.8 trillion yuan, an increase of 13.5 billion yuan over the end of the previous quarter; The non-performing loan ratio of commercial banks was 1.73%, down 0.02 percentage points from the end of last quarter. The balance of normal loans of commercial banks is 162.0 trillion yuan, including 158.2 trillion yuan of normal loans and 3.8 trillion yuan of special loans.
By bank type, by the end of 2021, the non-performing loan ratio of large state-owned banks and joint-stock banks was 1.37%, down 6BP and 3bp respectively from the end of the third quarter of 2021; The non-performing loan ratios of urban commercial banks and rural commercial banks were 1.9% and 3.63% respectively, both higher than that at the end of the third quarter of 2021.
Everbright Securities Company Limited(601788) Wang Yifeng, chief analyst of the financial industry, said that the non-performing loan ratio of different types of banks rose and fell quarter on quarter, the performance of state-owned banks and joint-stock banks was better, and the inter institutional differentiation of urban and rural commercial banks was expected to increase.
It is worth noting that the 2021 performance express released by several listed small and medium-sized banks recently shows that the asset quality is generally good, and the non-performing loan ratio remains low or decreased compared with the end of the previous quarter.
multi channel disposal of non-performing assets
The overall improvement of the asset quality of the banking industry also benefits from the continuous increase in the disposal of non-performing assets.
According to the data of China Banking and Insurance Regulatory Commission, in 2021, the total disposal of non-performing assets of the banking industry reached 3.13 trillion yuan, a record high, exceeding 3 trillion yuan for two consecutive years. From 2017 to 2021, the cumulative disposal of non-performing assets was 11.9 trillion yuan, exceeding the total disposal in the previous 12 years, providing an important guarantee for keeping the bottom line of systemic risk.
The 2022 working meeting of the CBRC proposed to support accelerating the disposal of non-performing assets. Experts believe that at present, the way banks write off non-performing assets presents a trend of “multi-point flowering”. In addition to the traditional write off and collection, new channels such as batch transfer and fixed increase of “tying” non-performing assets have also been widely used.
“In the future, the banking industry needs to comprehensively use a variety of means to deal with the rebound of non-performing assets.” Du Yang, a researcher at Bank Of China Limited(601988) Research Institute, believes that on the one hand, the banking industry needs to enhance its own risk offset ability, supplement bank capital through various means, improve the provision coverage and thicken the risk buffer; On the other hand, we should constantly enrich the means of non-performing disposal, and take comprehensive measures to mitigate risks, such as write off, collection, asset securitization, debt to equity swap, batch transfer of non-performing personal loans, etc. It is expected that the non-performing disposal will be further strengthened this year.
In addition, the pilot of batch transfer of retail non-performing assets has been completed for one year. Zeng Gang, director of Shanghai finance and development laboratory, believes that the pilot scope is likely to be expanded in the future. From the current actual development of the banking industry, some urban commercial banks and rural commercial banks are in the forefront of the market in terms of market position, business scale and internal control management, and even better than minority joint-stock banks. Being included in the pilot is conducive to resolving bad debts in the banking industry on the premise of controllable risk. At the same time, due to the higher geographical concentration of the business of Chengnong commercial bank, the inclusion in the pilot is more conducive to reducing the risk level in its system.
