On March 5, Premier Li Keqiang proposed in the government work report that we should “deepen the reform of ownership structure and corporate governance of small and medium-sized banks and speed up the disposal of non-performing assets”.
how to deepen the reform of ownership structure and corporate governance of small and medium-sized banks
Why is it important to deepen the equity reform and corporate governance of small and medium-sized banks? Dong ximiao, chief researcher of Zhaolian finance and part-time researcher of the Financial Research Institute of Fudan University, said in an interview with surging news that corporate governance is the core of the modern enterprise system and plays a more important role in the banking industry operating money and credit. After years of efforts, the corporate governance of Bank Of China Limited(601988) industry has achieved positive results, the structure of “three meetings and one layer” has been continuously optimized, and the efficiency of decision-making and supervision has been improved. However, it is undeniable that there are still some problems in the corporate governance of China’s commercial banks, especially small and medium-sized banks, such as “insider” control, non-standard equity management, “offside of major shareholders”, improper related party transactions and so on. Some of the problems are serious, which have accumulated great risks and affected the sustainable development of small and medium-sized banks.
Under such circumstances, what should small and medium-sized banks do? Dong ximiao believes that small and medium-sized banks should start from the aspects of shareholder qualification, related party transactions, organizational structure, assessment and incentive, improve the corporate governance system, straighten out the corporate governance operation mechanism, and improve the endogenous operation and management level and steady development ability of small and medium-sized banks. In particular, conduct penetrating supervision on the qualification and equity holding of shareholders, avoid short-term behaviors such as small and medium-sized shareholders greedy for financing convenience, and eliminate the use of banks as “cash machines”.
China Everbright Bank Company Limited Co.Ltd(601818) financial market Macro Analyst Zhou Maohua said in an interview with surging news that in recent years, China has actively promoted the reform of ownership structure and corporate governance of small and medium-sized banks, promoted the improvement of corporate governance of small and medium-sized banks, prevented and resolved potential financial risks from the source, and promoted the high-quality development of small and medium-sized banks.
Zhou Maohua further proposed that small and medium-sized banks are the main force serving small and micro enterprises and agriculture, rural areas and farmers. By consolidating the development foundation of small and medium-sized banks, accelerate the construction of multi-level banking system, dredge policy transmission and improve the quality and efficiency of financial services to the real economy. It can be predicted that more small and medium-sized banks will improve their governance structure through mergers and acquisitions and other market-oriented and legal means.
“In addition, small and medium-sized banks need to expand their financing channels and maintain the normal market order. In addition, some small and medium-sized banks need to improve the market quality and service differentiation.” Zhou Maohua said.
how to speed up the disposal of non-performing assets
In recent years, for the disposal of non-performing assets of small and medium-sized banks, both from the regulatory level and small and medium-sized banks themselves are frequently exploring new ways. The non-performing asset rate of small and medium-sized banks is relatively high, but there are few disposal methods of non-performing assets, single means and lack of channels, which is not conducive to reducing the burden of development of small and medium-sized financial institutions and improving the service capacity of the real economy.
In this regard, Dong ximiao believes that the regulatory authorities have carried out the pilot work of non-performing loan transfer for one year and achieved positive results. Small and medium-sized financial institutions should be included in the pilot transfer of non-performing assets as soon as possible, broaden the disposal channels of non-performing assets, and improve the ability to prevent and resolve risks; At the same time, we will take more differentiated measures to support small and medium-sized financial institutions to reduce their historical burden and enhance their ability to develop steadily and serve the real economy. In the future, we should take multiple measures at the same time, and comprehensively use various methods such as collection and reorganization, independent write off, transfer of non-performing assets and securitization of non-performing assets to further strengthen the treatment of non-performing assets and improve the treatment speed of non-performing assets. At the same time, relax policy restrictions, encourage more market players to actively participate in the disposal of non-performing assets, innovate disposal methods and means, and improve the supply capacity of the non-performing assets disposal market.
