Jiangsu Expressway Company Limited(600377)
About deposit and loan in group finance company
Risk assessment report of financial business
In accordance with the relevant requirements of China Securities Regulatory Commission and Shanghai Stock Exchange, Jiangsu Expressway Company Limited(600377) (hereinafter referred to as “the company”) inspected the financial license, business license and other certificates of Jiangsu communications Holding Group Finance Co., Ltd. (hereinafter referred to as “the finance company”), reviewed the capital verification and audit reports of the finance company, and evaluated the business qualification, business and risk status of the finance company, The relevant risk assessment is reported as follows:
1、 Brief introduction to finance company
Jiangsu communications Holding Group Finance Co., Ltd. has been approved by the CBRC on the reply of Jiangsu communications Holding Co., Ltd. on preparing to establish an enterprise group finance company (CBRC reply)
[2011] No. 192), and the preparation began on June 20, 2011. 2011
On December 23, the CBRC issued the reply on the opening of Jiangsu communications Holding Group Finance Co., Ltd. (YJF [2011] No. 594) to approve the opening of the finance company. On December 26, 2011, the finance company obtained the financial license issued by Jiangsu regulatory bureau of China Banking Regulatory Commission. On December 27, 2011, the finance company was registered and established in Jiangsu Administration for Industry and commerce.
The registered capital of the finance company is 2 billion yuan. Among them, Jiangsu communications Holding Co., Ltd. invested 1.375 billion yuan, accounting for 68.75% of the total registered capital, with Jiangsu Jinghu high
Expressway Co., Ltd. invested 125 million yuan, accounting for 6.25% of the total registered capital, and Jiangsu Expressway Company Limited(600377) invested 500 million yuan, accounting for 25% of the total registered capital. Unified social credit Code: 9132 Shenzhen Seg Co.Ltd(000058) 8434220n.
The business scope includes the following domestic and foreign currency businesses: handling financial and financing consulting, credit assurance and related consulting and agency businesses for member units; Assist member units to realize the receipt and payment of transaction funds; Handle entrusted loans between member units; Handle bill acceptance and discount for member companies; Handle the internal transfer settlement between member units and the corresponding settlement and clearing scheme design; Absorbing deposits from member units; Handle loans and financial leases for member units; Engage in interbank lending; Handle entrusted investment between member units; Underwriting corporate bonds of member units; Investment in marketable securities (excluding investment in the secondary stock market); Equity investment in financial institutions. (for projects subject to approval according to law, business activities can only be carried out after being approved by relevant departments) licensed projects: financial company services of enterprise group (for projects subject to approval according to law, business activities can only be carried out after being approved by relevant departments, and the specific business projects shall be subject to the approval results).
2、 Basic information of internal control of finance company
(I) control environment
The finance company implements the general manager responsibility system under the leadership of the board of directors. The finance company has established the board of shareholders, the board of directors and the board of supervisors in accordance with the provisions of the articles of association of Jiangsu communications Holding Group Finance Co., Ltd., clearly defined the responsibilities of directors, supervisors and senior managers in internal control, and defined the corporate governance structure in which the board of shareholders, the board of directors, the board of supervisors and the management have their own responsibilities, standardized operation and mutual checks and balances.
The finance company implements relevant national financial laws and regulations, guidelines and policies and the measures for the administration of enterprise group finance companies issued by Bank Of China Limited(601988) Insurance Regulatory Commission. The deposit and loan interest rates and various handling rates of the finance company shall be in strict accordance with the provisions of the people’s Bank of China. The finance company shall open a RMB account with the people’s Bank of China and pay the deposit reserve in accordance with the regulations. The finance company has set up a perfect organization and established management systems and risk control systems for deposits, loans, investment, settlement, finance, labor and personnel. The finance company shall establish an audit and inspection system for various businesses, and set up a full-time audit department independent of the operation and management, which is directly responsible to the board of directors.
The organizational structure of the finance company is as follows:
(II) risk identification and assessment
The finance company has formulated risk management, internal control system, management methods and operating procedures for various businesses, established an internal audit department, and supervised and audited the company’s business activities by setting up post supervision posts. Each department shall establish a risk assessment system and project responsibility management system within its scope of responsibility, formulate their own different risk control systems, operation processes and risk prevention measures according to the different characteristics of each business, separate the responsibilities of each department and supervise each other, and predict, evaluate and control various risks. In recent three years (20192021), the finance company has formulated or revised 25 relevant risk management systems.
According to the principle of substance over form and penetration, the finance company strengthens the awareness of risk management, formulates risk management strategies and preventive measures from the five steps of risk identification, risk assessment, risk analysis, risk control and risk report, improves the ability of risk prevention and disposal, earnestly shoulders the main responsibility of internal control compliance management and risk prevention and control, and ensures that the business operation conforms to the company’s strategy and overall interests.
1. Liquidity risk management
Due to the convergence or high similarity of industrial models, the member units in the group have highly consistent capital surplus and shortage characteristics, which also leads to the limitation of capital sources and the rigidity of capital expenditure. Therefore, meeting the credit demand of member units is the main capital expenditure of the financial company, and liquidity risk management is also one of the biggest challenges faced by the financial company.
The finance company continues to deepen liquidity risk management measures, measure its liquidity risk tolerance according to its development strategy, business characteristics and risk preference, and formulate liquidity risk management strategies and procedures, covering both on and off balance sheet businesses. The details are as follows: first, formulate liquidity risk management strategies, procedures and risk limits that match the risk profile and business scope, and calculate the liquidity asset demand according to the liquidity demand of items on and off the balance sheet to ensure sufficient liquidity. The second is to realize liquidity by optimizing the risk management mechanism with the cooperation of business departments, planning and finance departments and compliance risk departments
Stable and accurate monitoring of risk index T + 1; Through the T + 0 daytime real-time stress test and associated emergency management mechanism, we can realize the daily liquidity risk management mode of taking capital budget management as the main line, strengthening the control of capital revenue and expenditure process, early prediction, early planning and early action of large amount of capital in and out, so as to improve the efficiency of capital allocation, and improve the liquidity risk management and emergency financing mechanism. Third, strictly control the budget, timely follow up the implementation of various income indicators, follow the principle of no budget and no occurrence for various costs, and strive to accurately, objectively and comprehensively reflect the business situation. Fourth, carry out liquidity stress tests regularly in accordance with the principle of prudence, fully consider the internal correlation between various risks and liquidity risks, deeply analyze the impact and reaction of hypothetical scenarios on other liquidity risk elements, evaluate the rationality of asset liability structure and the adequacy of liquidity reserves according to the results of liquidity stress tests, clarify the risk mitigation strategies they should adopt and formulate liquidity emergency plans. At present, the stress test can basically cover the substantial risk sources of financial companies. 2. Credit risk management
The assets on and off the balance sheet of the financial company are classified as normal.
In order to effectively control credit risks and maintain the good quality of credit and non credit assets, the finance company has taken the following main measures: first, comprehensively sort out the potential credit risks, make full use of special activities such as “large-scale investigation, large-scale disposal and large-scale improvement” of normalized risk prevention and control, and asset risk monitoring to make a fresh start and strengthen the “three inspections”, For short-term loans that are difficult to cover relevant debts by relying on their own cash flow, timely carry out early recovery. Second, carry out post loan management in a timely manner, strictly classify the risks of on balance sheet and off balance sheet credit business, calculate risk weighted assets according to the requirements of capital management, and withdraw the loan loss reserves in full. Third, carry out interbank investment business carefully, control the total amount of interbank investment, set limits on various business types, pay attention to the credit qualification of counterparties and make reasonable dynamic adjustment, and strictly prevent the credit risk of interbank investment. Fourth, pay attention to the capital pressure, regularly monitor and evaluate the strategic objectives, the main risks faced and the impact of the external environment on the capital level, and evaluate whether the actually held capital is sufficient to resist the main risks; Prepare the report on the implementation of capital planning, evaluate the impact of credit demand and policy regulation of member units on capital, and regularly submit relevant information such as capital adequacy ratio to the supervisor. Fifth, continue to promote the construction of credit management system, and enable the implementation of credit internal control and credit risk management with science and technology.
3. Market risk management
The main market risk of the company is the interest rate risk. The market risk management measures of financial companies mainly include: first, continuously carry out market risk monitoring. Issue weekly financial observation, timely pay attention to the regulatory policy requirements and monetary policy changes, and track and master the market fundamentals, capital and market dynamics; Hold monthly and annual investment business review and analysis meetings regularly, and reasonably study and judge the possible market risks of relevant interest rate changes on the company’s investment business by analyzing the changes of Shibor average interest rate and LPR interest rate in different periods. Prepare and issue market risk monitoring report every quarter, pay attention to stock risk and make corresponding arrangements. Second, reasonably allocate business and control market risks. Most credit businesses adopt LPR plus or minus point locking target interest rate, and interbank investment business mainly focuses on short-term cash, so as to avoid sharp fluctuations in the value of financial products due to market interest rate fluctuations. Third, improve the ability of market risk identification, measurement and monitoring, and select the target variable indicators as the basis for regular market risk monitoring and stress testing.
4. Operational risk management
The finance company takes internal control as an important means of operational risk prevention and control, and refines the prevention and control mechanism through system, process, system, post, authorization and restriction. The operational risk management measures of the finance company mainly include: first, continuously improve the list of business risks, carefully investigate and sort out the operational risk points that are easy to trigger and have impact in the business processes such as investment and interbank, prepare the list of risk points and corresponding control measures, and enhance the visibility of system implementation to facilitate risk prevention and control. Second, guided by the operational risk management system and focusing on the special action of “major investigation, rectification and improvement” of internal management, promote all departments to carry out operational risk self-assessment, so as to lay the foundation for the establishment of a normalized operational risk self-assessment mechanism. Third, continuously improve the level of information management and control. Launch East, basic financial data and other systems to reduce the operational risk of statistical business, promote the online trading of electronic bills, and reduce the operational risk of bill business and capital clearing risk.
5. Compliance risk management
The finance company has always regarded “compliance” as the lifeline and attached great importance to compliance risk control. The financial company’s compliance risk management measures include: first, carry out special activities such as “management strengthening year” and “internal control compliance management construction year”, find and improve the internal control compliance weaknesses one by one according to the group and regulatory requirements. Second, regularly evaluate the compliance of the company’s systems and business processes, regularly sort out and revise the business systems, and ensure that the systems comply with the latest requirements of laws, regulations and standards. The third is to promote the implementation of internal audit system through the inspection of internal audit process and management system. For the problems, management opinions and suggestions found and pointed out in the internal audit, the relevant departments of the company seriously organize and implement the rectification and strengthen the compliance accountability. Fourth, strengthen compliance publicity and education and cultivate compliance culture. With the help of the weekly “Xinyitong” lecture hall, organize courses such as anti money laundering, prevention of illegal fund-raising, credit investigation and compliance, regulatory policies and compliance risk management, and strengthen compliance warning education. Continue to carry out compliance knowledge competition, “compliance star” evaluation, compliance publicity and other activities to continuously enhance employees’ compliance awareness. Fifth, pay attention to case prevention and control. Further strengthen the internal control management of key posts, key links and employee behavior, establish an investigation mechanism for the abnormal behavior of people around them in key posts, and do a good job in the job rotation of employees. Carry out surprise inspections on business premises, seal custody and use and UK certificate management, strengthen employees’ safety awareness and eliminate potential risks of cases.
6. Money laundering risk management
The finance company has continuously strengthened the “risk-based” awareness of anti money laundering management, guided by the guidelines for self assessment of money laundering and terrorist financing risks of corporate financial institutions issued by the people’s Bank of China, reconstructed the money laundering risk assessment model by locking in the main source of risks, and assessed the risks respectively from three levels: classification, dimension and overall. After assessment, the risk level of money laundering faced by the financial company is low.
(III) control activities
1. Fund management
In accordance with various rules and regulations stipulated by relevant national departments and the people’s Bank of China, the finance company covers: deposit reserve management, interbank deposit, interbank lending, rediscount and rediscount of bank acceptance bills, interbank credit extension, deposit business, settlement, reconciliation, important blank certificates and valuable documents, fund certificate, expressway vehicle toll fund transfer, assistance in query, freezing and deduction, etc The operation process effectively controls the risk of capital business.
(1) In terms of fund plan management, the business operation of the finance company strictly follows the management requirements for assets and liabilities in the measures for the management of enterprise group finance companies, and ensures the liquidity, safety and efficiency of the company’s funds through the formulation and implementation of fund plan management.
(2) In terms of deposit business of member units, the finance company strictly follows the principles of equality, voluntariness, fairness and good faith to ensure the safety of funds of member units and safeguard the legitimate rights and interests of all parties.
(3) In terms of centralized fund management and internal transfer settlement business, member units open settlement accounts in financial companies, realize fund settlement through Internet transmission path, strictly ensure the safety and quickness of settlement, and have high data security at the same time.
2. Credit business control
The loan objects of the finance company are limited to the internal member units of the group and the financial business customers of the “one end out” industrial chain that comply with the provisions of the measures for the administration of enterprise group finance companies and report to the regulatory authority. The financial company formulates the financial plan according to the different characteristics of various businesses
A management system covering customer credit rating, credit management, working capital loans, fixed asset loans, entrusted loans, syndicated loans, financial leasing, discount of bank acceptance bills, external guarantees, service-oriented loan commitment letters, mortgages and pledges, credit files and other aspects has been established, and a complete credit management system before, during and after loans has been established. (1) Established a loan management method of separating loan examination and approval and grading approval
