Bank Of Shanghai Co.Ltd(601229) 2021 annual capital adequacy Report
catalogue
1、 Introduction four
(I) Company Introduction four
(II) disclosure basis four
(III) disclosure statement four
2、 Capital and capital adequacy ratio five
(I) calculation scope of capital adequacy ratio five
1. Consolidated statement processing method of the invested institution five
2. Invested institutions included in the consolidation scope five
3. Differences between regulatory consolidation and financial consolidation five
4. Capital gap and capital transfer restrictions six
(II) capital adequacy ratio six
(III) capital composition six
1. Major capital components six
2. Threshold deduction limit and excess loan loss reserve limit seven
3. Major capital investment eight
4. Changes in paid in capital eight
(IV) measurement of risk weighted assets eight
(V) internal capital adequacy assessment nine
1. Methods and procedures for internal capital adequacy assessment nine
2. Capital planning and capital adequacy management plan nine
3、 Comprehensive risk management 10 IV. credit risk eleven
(I) credit risk management eleven
(II) credit risk exposure twelve
(III) credit risk mitigation thirteen
(IV) loan quality and loan impairment provision fifteen
(V) counterparty credit risk sixteen
(VI) Asset Securitization sixteen
1. Asset securitization business sixteen
2. Asset securitization risk exposure seventeen
5、 Market risk seventeen
(I) market risk management seventeen
(II) market risk measurement eighteen
6、 Operational risk nineteen
(I) operational risk management nineteen
(II) operational risk measurement twenty
7、 Other risk exposures and Assessments twenty
(I) liquidity risk twenty
(II) interest rate risk of bank account book twenty-two
(III) equity risk in bank account books twenty-three
(IV) country risk twenty-four
8、 Salary twenty-four
(I) Remuneration Committee twenty-four
(II) salary management policy twenty-five
(III) salary twenty-six
1、 Introduction
(I) Company Introduction
Bank Of Shanghai Co.Ltd(601229) was incorporated on January 30, 1996 and headquartered in Shanghai. It was listed on the main board of Shanghai Stock Exchange in November 2016 with stock code Bank Of Shanghai Co.Ltd(601229) .
Bank Of Shanghai Co.Ltd(601229) with the strategic vision of “high-quality bank” and the core values of “sincerity first, integrity based bank”, the service level has been continuously enhanced by promoting professional operation and fine management, and the characteristics of Inclusive Finance, supply chain finance, science and innovation finance, green finance, people’s livelihood finance, investment bank, transaction bank, cross-border bank, financial market, consumer finance, pension finance and online finance have gradually emerged. In recent years, Bank Of Shanghai Co.Ltd(601229) hereinafter referred to as “the bank” has grasped the trend of financial technology and continuously met the increasingly diversified financial service needs of enterprises and individual customers with smarter and more professional services. The bank ranked 67th among the “Top 1000 banks in the world” published by the Banker magazine in 2021.
(II) disclosure basis
This report is prepared and disclosed in accordance with the capital management measures of commercial banks (for Trial Implementation) (hereinafter referred to as “capital management measures”) issued by the former Bank Of China Limited(601988) Industry Regulatory Commission in June 2012 and relevant regulations.
(III) disclosure statement
This report is prepared in accordance with the concept and rules of capital adequacy ratio in the regulatory provisions of Bank Of China Limited(601988) Insurance Regulatory Commission, rather than financial and accounting standards. Therefore, some information in the report cannot be directly compared with the financial information in the annual report of listed companies.
This report contains a number of forward-looking statements on the bank’s financial position, operating performance and business development. These statements are made based on current plans, estimates and forecasts, which are related to future external events or the bank’s future financial, business or other performance. The future plans that may be involved do not constitute the bank’s substantive commitment to investors. Therefore, investors and relevant persons should maintain sufficient risk awareness and should not rely too much on them.
2、 Capital and capital adequacy ratio
(I) calculation scope of capital adequacy ratio
The bank calculates the capital adequacy ratio at all levels in accordance with the capital management measures. The calculation scope of consolidated capital adequacy ratio includes the bank and financial institutions directly or indirectly invested by the bank in accordance with the capital management measures.
1. Consolidated statement processing method of invested institutions
No. consolidated treatment method of investee category
Having a majority of the votes or control
1. Financial institutions (except insurance companies) are included in the consolidation scope
Those with majority voting rights or control rights are not included in the scope of consolidation, and the capital investment is deducted from the capital at all levels; If present
two
For the capital gap of insurance companies, the corresponding capital gap shall be deducted
Not included in the scope of consolidation, and the total core tier 1 capital investment exceeds the bank’s core tier 1 capital investment
Deduct 10% of the net amount of large minority capital level capital of financial institutions, and other tier 1 capital investment and tier 2 capital
three
The investment shall be deducted in full from the capital of the corresponding level. If the threshold deduction limit is not reached
Partial calculation of risk weighted assets
Not included in the scope of consolidation, and the total investment exceeds the net amount of the bank’s core tier 1 capital
4. 10% of the small minority capital of financial institutions is deducted from the regulatory capital at all levels, which does not reach the threshold deduction limit
investment
Part of the calculation of risk weighted assets
5. The minority equity investment in industrial and commercial enterprises is not included in the scope of consolidation, and the risk weighted assets are calculated
2. Investee included in consolidated statement
Unit: RMB million (excluding percentage)
Sequential shareholding ratio
No. name of invested institution investment balance (%) registered place business nature
1 Bank Of Shanghai Co.Ltd(601229) (Hong Kong) Limited 3279100 Hong Kong Commercial Bank of China
2 Shangyin Fund Management Co., Ltd. 270 90 Shanghai fund company
3 Shanghai Minhang Shangyin Village Bank Co., Ltd. 102 46.41 Shanghai Commercial Bank
4 Zhejiang Quzhou Qujiang Shangyin Village Bank Co., Ltd. 51 Zhejiang Quzhou commercial bank
5 Jiangsu Jiangning Shangyin Village Bank Co., Ltd. 102 51 Jiangsu Nanjing commercial bank
6 Chongzhou Shangyin Village Bank Co., Ltd. 66.3 51 Sichuan Chengdu Commercial Bank
3. Differences between regulatory consolidation and financial consolidation
According to regulatory requirements, insurance companies and industrial and commercial enterprises should not be included in the consolidated capital adequacy ratio.
Since the bank does not have the above subsidiaries, the scope of regulatory consolidation is consistent with that of financial consolidation.
4. Capital gap and capital transfer restrictions
In 2021, there was no regulatory capital gap in the invested financial institutions in which the bank held a majority stake or had control, and there were no restrictions on capital transfer within the group.
(II) capital adequacy ratio
At the end of 2021, the group’s core tier 1 capital adequacy ratio calculated in accordance with the capital management measures was 8.95%, tier 1 capital adequacy ratio was 9.95% and capital adequacy ratio was 12.16%, all meeting the regulatory requirements. The capital adequacy ratios of the group and the bank measured in accordance with the capital management measures are shown in the following table: unit: RMB million (excluding percentage)
December 31, 2021 December 31, 2020
Group parent company group parent company
Net core tier 1 capital 178 Cec Environmental Protection Co.Ltd(300172) 608166345160144
Net tier 1 capital 198275192565186318180101
Total net capital 242407236334228943222344
Core tier 1 capital adequacy ratio 8.95 8.79 9.34 9.15
Tier 1 capital adequacy ratio 9.95 9.80 10.46 10.29
Capital adequacy ratio 12.16 12.03 12.86 12.71
(III) capital composition
1. Major capital components
At the end of 2021, the consolidated capital composition measured by the group in accordance with the capital management measures and relevant regulations is shown in the following table:
Unit: RMB million
Project December 31, 2021
Core tier 1 capital 181445
Paid in capital 14207
Capital reserve 20643
Surplus reserve
