According to the news on the website of the CSRC on April 14, the 43rd meeting of the issuance Audit Committee of the CSRC in 2022 was held on April 14, 2022. According to the audit results, Jiangsu Dafeng Rural Commercial Bank Co., Ltd. (initial) failed to passP align = “center” source: website of China Securities Regulatory Commission
“pass through” failed
According to public information, Dafeng rural commercial bank is a county-level rural commercial bank in Dafeng District, Yancheng City, Jiangsu Province. With the approval of Jiangsu Banking Regulatory Bureau, it was established on November 26, 2011. Its predecessor was the rural credit cooperatives more than 60 years ago. It was operated by a unified legal person in 2001, established a rural cooperative bank in 2005, and restructured a rural commercial bank in 2011.
According to the official website of the CSRC, Dafeng rural commercial bank submitted its prospectus for the first time in November 2017. The latest pre disclosure was updated in May 2018 and officially held on April 14, 2022. The capacity of banks has been expanded to 42 A shares in four years.
According to the prospectus, Dafeng rural commercial bank plans to be listed on the Shenzhen Stock Exchange, and the number of shares to be issued shall not be less than 10% (including 10%) of the total share capital after issuance, and shall not exceed 25% (including 25%) of the total share capital after issuance.
The meeting of the development and examination committee mainly asked Dafeng rural commercial bank about its core competitiveness, profitability, asset quality, relationship with the provincial Associated Press and other issues.
For example, the meeting of the development and Examination Commission proposed that Dafeng rural commercial bank is a regional rural commercial bank, and its customers are mainly concentrated in Dafeng District, Yancheng City. The representative of Dafeng rural commercial bank is requested to explain whether it has a more comprehensive competitiveness and the measures taken by Dafeng rural commercial bank to improve its core competitiveness and their effectiveness in combination with the regulatory policies and regional economic development trend of the cross regional exhibition industry of Dafeng rural commercial bank; Combined with the fact that the net interest margin and net interest rate of return are lower than the average level of comparable companies in the same industry, this paper explains how to maintain sustainable profitability under the continuous downward trend of China’s interest rate.
In terms of asset quality, the IEC meeting required the representatives of Dafeng rural commercial bank to explain the impact on the asset quality of Dafeng rural commercial bank in combination with the economic operation of the main business places of Dafeng rural commercial bank and the impact of covid-19 epidemic and other external factors during the reporting period; Combined with the migration of various loans of Dafeng rural commercial bank, explain the effectiveness of the implementation procedures of the five level classification and relevant internal control measures, and whether the provision for loan impairment is sufficient.
In addition, Dafeng rural commercial bank is supervised by Jiangsu Association, and the core system is developed, constructed, operated and managed by Jiangsu Association. At the meeting of the development and examination committee, the representative of Dafeng rural commercial bank was asked to explain the relationship between Jiangsu Associated Press and Dafeng rural commercial bank, and whether the provincial Associated Press’s responsibilities and management of the composition of the board of directors, senior management appointment, daily supervision, operation management, risk management, development and construction of important information systems and operation and maintenance management of Dafeng rural commercial bank affect the independence and fairness of information disclosure; And the investment and other capital transactions between Dafeng rural commercial bank and the provincial Associated Press, the relationship between creditor’s rights and debts, and whether there is any allocation of management fees during the reporting period.
asset scale is small
According to the annual report of Dafeng rural commercial bank in 2021, by the end of 2021, the bank’s total assets were 53.975 billion yuan, an increase of 1.047 billion yuan over the previous year; Deposits received were 44.435 billion yuan, an increase of 1.903 billion yuan or 4.47% over the previous year; Loans and advances were 34.451 billion yuan, an increase of 3.49 billion yuan or 11.27% over the previous year,
The reporter noted that the asset scale of Dafeng agricultural commercial bank is small. At present, the bank with the smallest A-share asset scale is Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) , with total assets of 136868 billion yuan at the end of 2021, more than twice the asset scale of Dafeng rural commercial bank.
In terms of profitability, in 2021, the bank’s operating revenue was 1.333 billion yuan, an increase of 74 million yuan or 5.87% year-on-year; The net profit was 573 million yuan, a year-on-year increase of 63 million yuan, an increase of 12.33%.
In terms of asset quality, by the end of 2021, the bank’s non-performing loan balance was 381 million yuan, with a non-performing rate of 1.07%, a decrease of 0.03 percentage points over the beginning of the year.
In addition, by the end of 2021, the capital adequacy ratio of Dafeng rural commercial bank was 14.75%, down 0.33 percentage points from the end of the previous year.
In order to enhance capital strength, the enthusiasm of small and medium-sized banks for listing has not decreased in recent years. According to the data, up to now, there are 10 banks lining up for IPO, and the audit status is “pre disclosure update”. They are Chongqing Three Gorges bank, Huzhou bank, Bank of Guangzhou, Bank of Dongguan, Jiangsu Hai’an rural commercial bank, Jiangsu Kunshan rural commercial bank, Bozhou Yaodu Rural Commercial Bank, Anhui Ma’anshan rural commercial bank, Guangdong Nanhai rural commercial bank and Guangdong Shunde rural commercial bank.
According to the data of China Banking and Insurance Regulatory Commission, by the end of 2021, the capital adequacy ratio of urban commercial banks was 13.08% and that of rural commercial banks was 12.56%.
Industry insiders believe that due to the impact of the epidemic, the asset quality and profitability of small and medium-sized banks are under pressure, the demand for supplementary capital is large, and some small and medium-sized banks have relatively poor qualifications or insufficient experience. It is difficult to issue capital supplementary tools through market-oriented methods. We should further improve the market environment and supporting policies for banks to replenish capital, and improve the sustainable capital replenishment system and mechanism.
