Event: the central bank issued the draft of the financial stability law for comments, which aims to establish and improve an efficient and coordinated working mechanism for financial stability, further consolidate the main responsibilities of financial institutions and their major shareholders and actual controllers, the territorial responsibilities of local governments and the supervision responsibilities of financial supervision departments; Strengthen financial risk prevention and early correction; Establish a market-oriented and legal disposal mechanism, and clarify the source and use arrangement of disposal funds; We will strengthen accountability for violations of laws and regulations and resolutely hold the bottom line of no systemic financial risks.
Phased achievements in financial risk resolution have been implemented, and “financial stability” has been strengthened in the legal system, which is conducive to the stable and orderly operation of the banking industry. In the second quarter, we continued to pay attention to the force and effectiveness of steady growth and continued to be optimistic about the bank market. Individual stocks recommend high-quality urban and rural commercial banks: Bank Of Chengdu Co.Ltd(601838) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) , Bank Of Jiangsu Co.Ltd(600919) , and continue to recommend: Bank Of Ningbo Co.Ltd(002142) , China Merchants Bank Co.Ltd(600036) , Postal Savings Bank Of China Co.Ltd(601658) , focusing on the value of undervalued targets.
The financial stability act is a “law” and is of great significance to financial stability.
The financial stability law is higher than the general rules and regulations, and will become the basic law of the financial industry together with the people’s Bank of China law, commercial bank law and insurance law. And different from other laws, the financial stability law is a holistic, cross industry and cross sectoral legal norm for financial stability, paying more attention to systemic and major financial stability issues.
The provisions of the financial stability law are comprehensive and detailed, with strong operability.
This financial stability law has detailed and comprehensive provisions on all links related to financial prevention, resolution, disposal and accountability. Many provisions are very specific and operational guidance. It summarizes and institutionalizes the effective experience of preventing and resolving financial risks in the early stage, so as to provide reference for the resolution of financial risks in the future.
It not only stipulates the responsibilities of relevant institutions of financial supervision, but also defines the responsibilities of shareholders and local governments.
In the past, financial regulations more stipulated the responsibilities of the central bank and supervision. This time, it clarified the responsibilities and codes of conduct of various stakeholders, banks, bank shareholders, deposit insurance, guarantee funds and local governments in financial risk prevention (before and during) and financial risk disposal (after).
Clarify the capital contribution responsibilities of all parties involved in financial risk disposal, and local financial funds can be used to resolve financial risks.
First, lock in the capital supplement and relief responsibilities of shareholders and actual controllers. Second, allow market participation. Third, deposit insurance fund and industry security fund. Fourth, if it endangers regional stability and is difficult to resolve by market-oriented means, “the provincial people’s Government shall use local public resources according to law, and the provincial financial department shall exercise financial supervision over the use of local financial funds”. Fifth, where major financial risks endanger financial stability, the financial stability guarantee fund shall be used in accordance with the regulations, and public funds such as re loans from the people’s Bank of China can provide liquidity support for the financial stability guarantee fund.
Then clarify the financial stability guarantee fund to address major financial risks.
This time, the financial stability guarantee fund is clarified as the “reserve fund” to deal with “major financial risks”. With regard to financial disposal fund arrangements, bank shareholders, deposit insurance funds and industry guarantee funds are all in the forefront of the financial stability guarantee fund. The financial stability guarantee fund consists of funds raised from financial institutions, financial infrastructure and other entities, as well as other funds prescribed by the State Council. Or mainly including banking, securities, insurance and other financial enterprises, financial infrastructure or including UnionPay, various exchanges and other institutions. In addition, it is also clear that the central bank’s refinancing can provide liquidity support.
Risk warning: large-scale outbreak of real estate default risk; The economy fell sharply, exceeding expectations.
