In recent years, what is the progress of the reform of local small and medium-sized banks? What are the deficiencies in the supervision and punishment of bank shareholders by the regulatory authorities? Financial corruption and financial risks are intertwined in depth. How will the regulatory authorities deal with them? Facing the fierce competition in the county financial market, how should small and medium-sized rural banks improve their competitiveness?
On May 20, the heads of relevant departments of the CBRC disclosed and analyzed the "past, present and future" of local small and medium-sized banks at the briefing of the CBRC, and actively responded to market concerns.
at the meeting, the person in charge of the relevant department of the China Banking and Insurance Regulatory Commission revealed in response to a reporter's question from the Shanghai Securities News on the risk incident of Henan rural banks that this incident is not simply a transaction between the public and rural banks, but also involves other subjects and a very complex transaction structure
The person in charge stressed that all businesses handled in accordance with laws and regulations are protected by national laws; The CBRC will cooperate with other departments to severely crack down on those suspected of illegal crimesRisk involved in other transactions in Henan Center
The CBRC responded to market concerns for the third time in response to the difficulty of withdrawing funds from four rural banks, namely Yuzhou xinminsheng rural bank, Kaifeng New Oriental Rural Bank, Zhecheng Huanghuai rural bank and Shangcai Huimin rural bank.
The person in charge of relevant departments of the China Banking and Insurance Regulatory Commission said that since the incident, the China Banking and Insurance Regulatory Commission has attached great importance to and continued to pay attention to it, and instructed Henan banking and insurance regulatory bureau to cooperate with the local Party committee and government in risk disposal.
"As far as we know, this incident is not simply a transaction between the public and rural banks, but also involves other subjects and a very complex transaction structure." The person in charge of relevant departments of the CBRC said that Henan new wealth group, the major shareholder of these rural banks, used a third-party platform or through "fund brokers" to absorb public funds, which is suspected of breaking the law and crime. At present, the public security organ is investigating.
The person in charge of the relevant department of the CBRC said that the incident will eventually be handled in accordance with the investigation results of the public security organ and the corresponding laws, regulations and evidence.
"However, in any case, all businesses handled in accordance with laws and regulations are protected by national laws; if they are suspected of violating laws and crimes, the CBRC will cooperate with other departments to crack down severely." The person in charge of relevant departments of the CBRC said.
previously, the CBRC has responded twice to the risk events of Henan rural banks . The CBRC said that the deposit and withdrawal business of the business outlets of the four rural banks was carried out normally, and all businesses handled in accordance with the law were protected by national laws. The cbcirc reminds financial consumers to choose formal channels for financial business, not to be misled by false publicity such as "high interest rate" and "high yield", and not to easily entrust funds to a third party to prevent being deceivedP align = "center" focus on investigating and dealing with illegal transfer of interests through credit, bonds, discount and other means
Deepening the reform of corporate governance is an important means for small and medium-sized banks to resolve risks and achieve high-quality development.
The person in charge of relevant departments of the CBRC disclosed that since this year, special rectification has been carried out on equity and related party transactions, focusing on investigating and dealing with equity issues such as illegal pledge, equity nesting and equity holding by major shareholders, illegal transfer of interests through credit, bonds, discount and other means, as well as insider control and manipulation of tunneling institutions by major shareholders p align = "center" since 2018, rural small and medium-sized banks have disposed of 2.6 trillion yuan of non-performing assets, and urban commercial banks have disposed of 1.8 trillion yuan of non-performing assets in five years
In recent years, the reform of rural small and medium-sized banks, urban commercial banks and other local small and medium-sized banks has made steady progress. In terms of effectiveness:
The disposal of non-performing assets made great strides.
In terms of rural small and medium-sized banks, since 2018, 627 high-risk rural small and medium-sized banks have been disposed of, and 2.6 trillion yuan of non-performing loans have been disposed of, exceeding the sum of the previous decade.
In terms of urban commercial banks, in the five years from 2017 to 2021, the cumulative disposal of non-performing loans by urban commercial banks was 1.8 trillion yuan, which was 5.2 times the cumulative disposal from 2011 to 2016.
At the same time, local small and medium-sized banks should increase capital supplement and enhance their capital strength and ability to resist risks.
In terms of rural small and medium-sized banks, the CBRC, together with the Ministry of finance, the people's Bank of China and other departments, innovated the measures of local government special bonds to supplement the capital of small and medium-sized banks, and injected 133.4 billion yuan into 289 rural small and medium-sized banks.
In terms of urban commercial banks, we have made good use of the policy tools of local government special bonds to supplement the capital of small and medium-sized banks, and have approved the capital plan of 104.6 billion yuan for 39 Urban Commercial Banks in 13 provinces.
The chaos of shareholders' equity has also been initially curbed.
In terms of rural small and medium-sized banks, from 2018 to 2020, more than 4000 shareholders were restricted from voting rights and ordered to transfer more than 6 billion shares.
In terms of urban commercial banks, they strengthened the penetration review of shareholders, carried out special rectification of equity and related party transactions, disclosed major illegal shareholders, and dismissed problematic shareholders in accordance with the law. For example, the Bank of Sichuan cleaned up 258 unqualified old shareholders according to law.
At the same time, the CBRC supports local governments to introduce high-quality local enterprises and financial institutions as strategic investors to restructure high-risk institutions. For example, local governments in Guangdong Province and Zhejiang Province have promoted the introduction of strategic investors by Nanyue bank, Wenzhou bank and Ningbo Donghai bank to improve corporate governanceP align = "center" the legal system for risk prevention and control is not perfect, and the supervision and punishment of bank shareholders by regulators are lack of clear legal authorization
"The risks of rural small and medium-sized banks are generally controllable and convergent. However, from the perspective of stock, the volume of risks accumulated in history in some areas is large, and disposal efforts need to be continuously strengthened; from the perspective of increment, the risks brought by the impact of the epidemic, economic transformation and industrial reform will gradually appear." The person in charge of relevant departments of the CBRC said.
While seeing the effectiveness of reform and insurance, the development of local small and medium-sized banks still faces challenges. For example, the legal system of risk prevention and control is not perfect.
"The construction of laws and regulations on the disposal of problem banks in China lags behind, the market-oriented exit channel of high-risk institutions is not smooth, and the market discipline of survival of the fittest is difficult to play a role. The supervision and punishment of bank shareholders by regulatory authorities lacks clear legal authorization, and it is difficult to penetrate and identify invisible shareholders and proxy shares." The person in charge of relevant departments of the CBRC said.
There are many problems restricting the development of rural small and medium-sized banks. For example, there are defects in shareholder equity management and corporate governance, and some institutions still have problems such as insider control, external manipulation, illegal related party transactions and so on; The orientation of the Provincial Association of rural credit cooperatives is vague, and the problems of offside and vacancy coexist; Some rural banks fail to perform their duties properly; Insufficient risk disposal resources in some regions; Fierce competition in county financial market, etc.
The person in charge of relevant departments of the CBRC said that in the next step, we will strengthen coordination and cooperation with relevant departments and continue to do a good job in supplementing the capital of small and medium-sized banks with special bonds of local governments; Broaden the sources of risk disposal funds, make rational use of deposit insurance funds, financial stability guarantee funds, etc., and "one bank, one policy" to deal with key high-risk institutions in a stable manner to ensure that risks do not overflow; We will enrich the channels for the disposal of non-performing loans, implement the support policies for the disposal of non-performing loans of local small and medium-sized banks, and accelerate the resolution of non-performing assetsP align = "center" some risk events of urban commercial banks exposed collusion among corrupt executives, illegal business owners and corrupt supervisors
In terms of urban commercial banks, the person in charge of relevant departments of the China Banking and Insurance Regulatory Commission frankly said that some urban commercial banks have risks, exposing that their corporate governance is in vain, major shareholders take shares in a scattered manner, take bribes, insiders control, serious corruption, institutions deviate from their positioning and expand savagely, and business risks accumulate rapidly until they break out in an all-round way.
There are also some risk events of urban commercial banks, which expose the collusion of corrupt executives, illegal business owners and corrupt supervisors of urban commercial banks, and the deep interweaving of financial corruption and financial risks.
The person in charge of relevant departments of the cbcirc said that in the next step, we should take improving corporate governance as the top priority of the reform of urban commercial banks, strengthen the supervision of shareholders' equity, promote the formation of effective self-discipline and achieve high-quality development. The regulatory authorities will adhere to the positioning of "supervision surnamed supervision", strengthen the linkage and coordination with the discipline inspection and supervision departments, and promote the financial anti-corruption and disposal of financial risksP align = "center" financial technology + crowd tactics to consolidate the advantageous position of rural small and medium-sized banks in the county financial market
At present, the competition in the county financial market is fierce.
Analyzing the reasons for this phenomenon, the person in charge of relevant departments of the CBRC said that in recent years, large banks have been sinking their business focus, and there are an average of 9 banks in each county. The traditional advantages of small and medium-sized rural banks, such as geographical popularity and wide range of points, have been impacted, the lag of information technology construction and high operating costs have become more and more prominent, the loss of high-quality customers of some institutions and the continuous decline of profitability.
The person in charge of relevant departments of the CBRC said that in the next step, we should promote the digital transformation of rural small and medium-sized banks, use big data and financial technology to improve customer service, improve risk control efficiency, transform the exhibition mode, and consolidate the advantageous position of rural small and medium-sized banks in the County financial market through financial technology + crowd tactics.
The person in charge also said that small and medium-sized rural banks should adhere to the principle that credit funds come from local sources, are used locally and are scattered in small amounts. They should not absorb large deposits from other places or issue loans from other places, strictly control large-scale credit and sink the focus of service to the local market; Actively adapt to the development of county areas and changes in financial supply and demand, guide and improve "new citizens" financial services, and expand effective credit; For small and micro enterprises that are greatly affected by the epidemic but are willing to repay and have strong employability, maintain stable credit support and tide over the difficulties together.
