Before the two meetings of China Banking Regulatory Commission! Stable operation of stock market, bond market and foreign exchange market

category:Finance
 Before the two meetings of China Banking Regulatory Commission! Stable operation of stock market, bond market and foreign exchange market


First look at the important statement of the head of relevant departments of the CBRC:

1. The possibility of the world economy falling into recession or even depression is increasing, and the external input risk of Chinas banking and insurance industry is increasing. The impact of overseas epidemic on the stability of Chinas supply chain may also be reflected in the quality of bank assets in the future.

3. According to the actual needs of epidemic prevention and control and enterprises resumption of production, the CBRC will appropriately extend the implementation period of the policy of delayed repayment of principal and interest, and create policy tools to support banks to issue credit loans.

4. In accordance with the spirit of the supplementary notice of the new regulations on asset management, after the end of the transition period, the stock assets that are difficult to be disposed of due to special reasons can be applied for and promised by the relevant institutions and properly disposed of with the consent of the financial supervision department. The CBRC will also coordinate with the central bank to study whether to make a modest adjustment to relevant policies according to the actual situation.

6. The novel coronavirus pneumonia has a negative impact on the insurance industry in the short term, and the premium income growth rate has declined. Although the growth rate of premium income has declined, the overall solvency of the insurance industry is sufficient and the liquidity is stable, so there will be no systemic liquidity risk.

The external input risk faced by the banking and insurance industry has increased

In the analysis of domestic and foreign situations, the CBRC believes that at present, the domestic epidemic prevention and control trend is further stable, but the spread trend of overseas epidemic is still on the rise, the global financial market volatility is significantly increased, the possibility of the world economy falling into recession or even depression is increased, and the external input risk faced by Chinas banking and insurance industry is on the rise. It is mainly manifested in the following three aspects:

First, there is great uncertainty in foreign demand, and the credit risk of foreign trade enterprises has increased. The global economic growth slows down and the pressure of external demand drops. The export orders of foreign trade enterprises are delayed, cancelled and reduced. From January to April, the total export volume of Chinas goods decreased year on year 6.4% It may aggravate the business pressure of foreign trade enterprises and the probability of deterioration of the quality of related loans.

Third, the overseas financial market has become more volatile, and the prices of stocks, bonds, gold and bulk commodities have all fallen sharply for a time. The relevant risks have some negative effects on Chinas financial market and financial system through investor confidence, capital flow and other channels.

However, from the current situation, the non-performing loans of the banking industry have increased, but the increase is within the expected range. The overall operation of the stock market, bond market and foreign exchange market is stable, and the impact of the overseas epidemic on the banking insurance industry is generally controllable. Person in charge of relevant departments of CBRC.

During the outbreak, the CBRC and other departments issued a series of policies to support the resumption of production and help small and micro enterprises through difficulties. According to the statistics of the banking association, as of May 17, the credit support provided by banking institutions for epidemic prevention and control and resumption of production has exceeded 3.11 trillion yuan. In terms of Inclusive Finance, at the end of April, the national inclusive small and micro enterprise loan reached 12.79 trillion yuan, a year-on-year growth rate of 27.34%, far higher than the year-on-year growth rate of various loans; the newly issued inclusive small and micro enterprise loan interest rate of 18 national commercial banks was 4.94%, a drop of 0.5 percentage point on the basis of 2019; in addition, the CBRC also issued a moratorium on the implementation of principal and interest repayment for small and micro enterprise loans As of the end of April, banking institutions have extended the principal and interest of loans to small and medium-sized micro enterprises of more than 1.2 trillion yuan.

According to the head of relevant departments of the CBRC, in the next step, the CBRC will adjust and optimize the financial policy according to the actual needs of epidemic prevention and control and enterprises resumption of production, appropriately extend the implementation period of the policy of delayed repayment of principal and interest, and create policy tools to support banks to issue credit loans.

Cooperate with the central bank to study whether to adjust the relevant asset management policies appropriately

By the end of April, the balance of non breakeven financial products of banks and their financial subsidiaries totaled 25.9 trillion yuan. According to the new regulations on asset management and financial management, the transition period will end at the end of this year. However, in the actual situation of financial transformation of banks, some banks still have some difficulties in completing the transformation before the transition period. Therefore, the head of the relevant departments of the CIRC said that in his work, he noted the difficulties and problems reflected by some banks. In accordance with the spirit of the supplementary notice of the new regulations on asset management, after the end of the transition period, the stock assets that are difficult to be disposed of due to special reasons can be applied for and promised by the relevant institutions and properly disposed by appropriate arrangements with the consent of the financial supervision department.

Whats more, the person in charge disclosed that he would also cooperate with the central bank to study whether to make a modest adjustment to relevant policies according to the actual situation.

CBRC steadily promoted the reform of financial subsidiaries. As of the end of April this year, 19 banks have been approved to set up financial subsidiaries, 12 of which have been opened for operation, and many other banks are also in the process of preparation. On December 20, 2019, it was approved that Dongfang Huili Asset Management Co., Ltd. and Bank of China Financial Management Co., Ltd. set up a joint venture financial management company in Shanghai, which is the first foreign holding financial management company set up in China. It is understood that other international asset management institutions are also communicating with relevant financial subsidiaries to negotiate the establishment of a foreign-owned financial company.

Last year, we investigated and dealt with more than 3000 violations of shareholders equity

The governance of the stock rights disorder of the shareholders of the bank and insurance institutions is the bull nose to prevent and resolve the financial risks, and also to promote the supervision work. In recent years, the CBRC has continued to promote the rectification of shareholder equity chaos and achieved preliminary results. We will establish a bad record of equity management in banking and insurance institutions, continue to strengthen the supervision and punishment of illegal shareholders, and continue to carry out special rectification of shareholder equity and related party transactions.

In addition, the CBRC has also carried out the liquidation of illegal shareholders equity in high-risk institutions. In the process of dealing with and resolving the risks such as the contractor bank, the CBRC takes clearing the illegal shareholders equity as an important starting point. It is reported that at present, the risk disposal, reform and reorganization of contractors banks and other institutions have been carried out in an orderly manner; for other institutions of concern to the society, the relevant equity restructuring plans have been introduced one after another, and the involved problem shareholders are also in an orderly manner.

The person in charge of the CIRC disclosed that in the next step, the CIRC will continue to improve the effectiveness of corporate governance of bank insurance institutions. First, we will study and formulate regulatory guidelines for major shareholders behaviors, and accelerate the establishment of regulatory mechanisms such as centralized custody of equity and disclosure of major illegal shareholders. Second, we will continue to focus on cracking down on violations of laws and regulations by shareholders, and continue to carry out special rectification of equity and related transactions. The third is to carry out corporate governance evaluation, strengthen three meetings and one level performance supervision and accountability, further strict shareholder qualification review, optimize shareholder structure and standardize shareholder behavior.

To resolve the shadow bank risk is a key work to prevent and resolve major financial risks. According to the latest data released by the CIRC, the shadow banks have been reduced by 16 trillion yuan in the past three years, most of which are high-risk businesses with complex structure, large regulatory arbitrage and potential risks, and the shadow banks and cross financial risks have continued to converge.

As of the end of the first quarter, the balance of interbank financial management was 846 billion yuan, 87% less than the historical peak; the paid in trust of interbank channel business was nearly 5 trillion yuan less than the historical peak.

Although remarkable achievements have been made in shadow banking governance, the relevant directors of the CBRC said that the next step will continue to maintain a high-pressure situation, severely punish illegal behaviors in key risks in key areas, and persistently dismantle high-risk shadow banking business to prevent its resurgence. Strengthen information communication and policy coordination, improve the coordination, foresight and effectiveness of cross industry supervision, and form a joint force of supervision. We will guide the banks financial management and trust industry to make a sound transformation, optimize product structure, reduce channel business, and promote participation in the third pillar of pension security. Establish and improve the shadow banking statistical monitoring system and public disclosure system in line with Chinas actual situation, and clarify the characteristics and statistical caliber of high-risk shadow banks.

The growth rate of premium income declines but there is no liquidity risk

The novel coronavirus pneumonia has a negative impact on the insurance industry in the short term, and the premium income growth has declined. In 1-4 months, the premium income of the insurance company was 477 billion 635 million yuan, up 6.06% over the same period last year, and the growth rate dropped 5.18 percentage points. The premium income of the original premium of the life insurance company increased by 1 trillion and 510 billion yuan, up 3.81% over the same period last year, and the growth rate dropped 12.29 percentage points year-on-year.

However, the relevant head of the CIRC stressed that despite the decline in the growth rate of premium income, the overall solvency of the insurance industry is sufficient and the liquidity is stable, so there will be no systemic liquidity risk.

By the end of April, the total assets of the property insurance industry were 2.37 trillion yuan, with a net asset of 667.044 billion yuan; the total assets of the personal insurance industry were 18 trillion yuan, with a net asset of 1.4 trillion yuan. At the end of the first quarter, the comprehensive solvency adequacy ratio of property insurance companies was 284.9%, and that of personal insurance companies was 240.7%. According to preliminary judgment, the annual insurance business will still maintain a positive growth, and generally maintain a stable operation. In the next step, the CBRC will intensify on-site inspection and continue to maintain a high-pressure situation, the person in charge said. Companies with outstanding problems will be included in the special inspection of corporate governance, and some of the non-standard Chinese and foreign companies will be included in the overall inspection; further standardize the order of the auto insurance market, and promote the high-quality development of auto insurance. Pay close attention to the possible illegal problems in the market, strengthen the risk investigation of dividend insurance products, and seriously deal with the illegal problems; deal with the outstanding problems in the short-term health insurance operation, such as the product design is not standardized, the sales behavior is not standardized, and the forced tying of products. Once the violation is verified, not only heavy punishment shall be imposed, but also the accountability of senior executives shall be strictly pursued. Source: responsible editor of securities companies in China: Yang bin_nf4368

In the next step, the CBRC will intensify on-site inspection and continue to maintain a high-pressure situation, the person in charge said. Companies with outstanding problems will be included in the special inspection of corporate governance, and some of the non-standard Chinese and foreign companies will be included in the overall inspection; further standardize the order of the auto insurance market, and promote the high-quality development of auto insurance. Pay close attention to the possible illegal problems in the market, strengthen the risk investigation of dividend insurance products, and seriously deal with the illegal problems; deal with the outstanding problems in the short-term health insurance operation, such as the product design is not standardized, the sales behavior is not standardized, and the forced tying of products. Once the violation is verified, not only heavy punishment shall be imposed, but also the accountability of senior executives shall be strictly pursued.