In response to the changes in financing demand brought by the epidemic, on the same day, the CBRC held a media conference on the issue of banking and insurance industry supporting the resumption of production. Li Junfeng, director of Inclusive Finance Department of the CBRC, pointed out that small and micro enterprises and individual industrial and commercial households would resume production through the policy of stability, continuation, increase, reduction, simplification and tolerance.
Rapid aid to small and micro enterprises needs stability, continuity, increase, reduction, simplicity and capacity
These changes are reflected in: the demand for rescue and emergency loans is increasing; after small and micro enterprises resume production and work, the demand for new credit is strong, and the demand for compensation may be reflected in March and April; the ability of some enterprises to repay loans in the short term is declining, the pressure for repayment is increasing, and the loan needs to be extended and postponed, which increases the potential risk of non-performing loans, Li Junfeng pointed out at the conference.
In response to these changes, many policies are being implemented, which Li summarized into six words: stability, continuity, increase, decrease, simplicity and tolerance.
Stable means to use stable finance and stable credit of small and micro enterprises to achieve the purpose of stable employment and stable expectation; continued means to extend and renew the loan of the affected enterprises reasonably; increased means to give active support to the increased compensatory credit demand of small and micro enterprises; decreased means to further reduce the financing cost of enterprises; simplified means to simplify the procedures of first loan, renewal and extension according to special affairs Process and tolerance, i.e. to improve the tolerance of poor performance, to enhance flexibility, and to pre adjust and fine tune regulatory policies.
Li Junfeng revealed that the CBRC is studying with the central bank whether it can increase the amount of small re loans and special financial bonds for small and micro enterprises. At the same time, the CBRC supports such initiatives as the local set up transfer funds for small and micro enterprises.
On the 25th, the State Council decided to increase the rediscount of loans by 500 billion yuan for small and medium-sized banks to increase their support for small and medium-sized enterprises. At the same time, the interest rate of supporting agriculture and supporting small-scale loans was reduced by 0.25 percentage points. Before the end of June, the local legal person banks will be granted new inclusive small and micro loans, and eligible banks are allowed to apply for re loans in equal amount. We will encourage commercial banks to increase micro credit and try to make interest rates significantly lower than last year. In the first half of the year, the balance of inclusive small and micro loans of large state-owned banks will strive for a year-on-year growth rate of no less than 30%. Policy banks increased special loans of 350 billion yuan to private, small and medium-sized micro enterprises at preferential interest rates.
Wen bin, chief researcher of China Minsheng Bank, said that the current and future financial policies focus on supporting SMEs and reducing their financing costs. The financial support policy of increasing the return to work and production of small and medium-sized micro enterprises launched by the State Council is very timely and necessary, and also has a strong pertinence, which helps small and medium-sized micro enterprises to better cope with the adverse impact of the epidemic and ensure the safe and orderly return to work and production.
Allowing banks to increase their tolerance for bad is not deregulation
Since the outbreak of the epidemic, the CBRC has repeatedly stated that, for small and micro enterprises affected by the epidemic, which have resulted in non-performing loans and losses, financial institutions of the banking industry are encouraged to appropriately simplify the internal identification procedures, increase the strength of independent verification, and allow banks to further improve the tolerance of non-performing loans. But the market is also concerned about whether the move will impact the banking system and put pressure on the quality of bank assets.
Xiao Yuanqi, chief risk officer of China Banking Regulatory Commission, responded that in order to cope with the impact of the epidemic, China Banking Regulatory Commission has taken some temporary and phased measures to encourage banks to help enterprises in distress, especially small and micro enterprises, including loan renewal, extension, extension, etc., but these policies are conditional, provided that the specific reasons for the failure of enterprises to repay principal and interest are clearly distinguished, and there are also periods Limited requirements. Generally speaking, the banking system has the ability to resolve these non-performing loans.
Even if the defect rate rises slightly, it can be dealt with. According to Xiao Yuanqi, the provision is nearly 6 trillion yuan, twice of the existing non-performing loans. The bank generates a net profit of more than 200 billion yuan every year, and the capital adequacy ratio reaches 14.64%, with nearly 23 trillion yuan of capital.
The regular meeting of the State Council on that day pointed out that financial institutions are encouraged to grant temporary deferred repayment arrangements to the principal of loans of small and medium-sized micro enterprises and individual industrial and commercial households that meet the conditions and have difficulties in liquidity. The payment of interest can be extended to June 30 without penalty interest. All kinds of enterprises in Hubei can enjoy the above policies.
If in the past, after the normal business activities of the enterprise are resumed, the principal and interest cannot be repaid, it must be recorded as non-performing according to the loan classification method. He stressed that in the current situation, the non-performing rate will rise slightly in the short term, while the impact of the epidemic is short-term, and the vast majority of enterprises unable to repay temporarily are mainly affected by external factors. In addition, from the perspective of commercial banks themselves, there is enough risk resistance.
It must be stressed that we are not deregulation, and there is no change in the direction of legal supervision, compliance supervision and prudent supervision. Xiao Yuanqi stressed that the support for enterprises is also an effective measure for the banking industry to prevent risks. If an enterprises capital chain is strained due to the epidemic, and the bank doesnt give it any help, it will become a substantial defect. Banks and enterprises are going through difficulties together, and it is expected to return to normal after the outbreak.
Real estate differentiation one city, one policy space increases
Recently, some banks issued the notice of adjusting the individual housing loans in non limited purchase cities, which was regarded as the signal of real estate regulation loosening by the market. However, the regulatory statement said that the real estate financial policy has not been adjusted and changed.
Xiao Yuanqi said at the meeting that the policy of real estate finance has not been adjusted and changed, and the CBRC will also monitor and dynamically grasp the financing situation of the real estate market.
Recently, Zheshang Bank issued a notice to adjust personal loans. For non limited purchase cities, branches can reduce the proportion of down payment loans for non limited purchase urban households to 20% (20%) from 30% (30%) according to local limited purchase, limited loan and regulatory policies.
Previously, there have also been many issues on the adjustment of the housing provident fund loan policy notice. Wen bin told the first financial reporter that from the perspective of the macro-control policy of real estate, we still adhere to the principle of no speculation in housing, because the overall tone of urban policy is to ensure the three stability of the real estate market, i.e. stable land price, stable house price and stable expectation. In the near future, we have also seen some regions and cities macro-control policies on real estate. According to the operation of local real estate, we have made corresponding adjustments, including the relaxation of pre-sale and the reduction of down payment ratio of real estate finance, which is also conducive to the three stability policies of real estate and the smooth operation of local real estate.
Affected by the epidemic situation and a variety of factors, the relationship between supply and demand in some cities is changing. Moodys recently released the latest issue of Chinas real estate market focus, which shows that the national real estate sales are expected to decline slightly in 2020 due to the new coronavirus epidemic, the weakening demand of the third and fourth tier cities and the high base of contract sales in 2019.
Especially in the third and fourth tier cities, the population outflow and the industrial base are relatively weak, which are affected by the epidemic in the short term. There is also a trend of land auction and house price decline in real estate. Each city still needs to implement policies to ensure the three stability of real estate. Wen Bin said.
Wen bin predicted that in the next stage, some banks will adopt similar adjustments according to their own asset liability structure and credit policies, but the adjustment is mainly combined with local real estate regulation and control policies to ensure the smooth operation of the market. In the main tone of housing is not fried, the space of differentiation one city, one policy is increasing. It used to be one city, one policy. The local government made arrangements according to the citys situation in a large direction, not violating the major policy requirements, including the real estate financing policy. Xiao Yuanqi said. According to Dongfang Jincheng Research Report, on the whole, the epidemic has a negative impact on short-term sales, but consumers demand for medium and long-term house purchase has not weakened. In the future, with the epidemic gradually under control, the demand for house purchase will be replenished, three stable tone will remain unchanged, and mortgage delivery will stabilize. At the same time, monetary policy and local regional policy under the citys policy are expected to be loose, and sales will be stable and weak u3002 Source: First Financial Editor: Guo Chenqi, nbj9931
Wen bin predicted that in the next stage, some banks will adopt similar adjustments according to their own asset liability structure and credit policies, but the adjustment is mainly combined with local real estate regulation and control policies to ensure the smooth operation of the market.
In the main tone of housing is not fried, the space of differentiation one city, one policy is increasing. It used to be one city, one policy. The local government made arrangements according to the citys situation in a large direction, not violating the major policy requirements, including the real estate financing policy. Xiao Yuanqi said.
According to Dongfang Jincheng Research Report, on the whole, the epidemic has a negative impact on short-term sales, but consumers demand for medium and long-term house purchase has not weakened. In the future, with the epidemic gradually under control, the demand for house purchase will be replenished, three stable tone will remain unchanged, and mortgage delivery will stabilize. At the same time, monetary policy and local regional policy under the citys policy are expected to be loose, and sales will be stable and weak u3002