In the first half of the year, the profit of the banking industry decreased by 9.4percent year on year, and the asset quality was basically stable

category:Finance
 In the first half of the year, the profit of the banking industry decreased by 9.4percent year on year, and the asset quality was basically stable


A spokesman for the CBRC said earlier that according to the accrual basis accounting principle, the interest income of potential risk loans is still fully included in the profit accounting, while the actual risk has not been fully reflected. The CBRC will, in accordance with the decision-making and deployment of the Party Central Committee and the State Council, urge banks to maintain a reasonable increase in profits, make real profits and make good use of them.

In terms of asset quality, the data shows that at the end of the second quarter of 2020, the balance of non-performing loans of Chinas commercial banks was 2.74 trillion yuan, an increase of 124.3 billion yuan compared with the end of the previous quarter; the non-performing loan ratio of commercial banks was 1.94%, increased by 0.03 percentage points compared with the end of last quarter. The balance of normal loans of commercial banks is 138 trillion yuan, including 134 trillion yuan of normal loans and 3.9 trillion yuan of special interest loans.

However, the data show that Chinas commercial banks have sufficient risk compensation ability. At the end of the second quarter of 2020, the loan loss reserve balance of commercial banks was 5.0 trillion yuan, an increase of 206 billion yuan compared with the end of the previous quarter; the provision coverage rate was 182.4%, decreased by 0.80 percentage points compared with the end of last quarter; the loan provision ratio was 3.54%, increased by 0.04 percentage points compared with the end of last quarter.

In view of the situation since this year, the mid-2020 work forum and discipline inspection and supervision (teleconference) meeting held by the CIRC mentioned that the bottom line of systemic financial risk should not occur. We should plan ahead of time to deal with the substantial increase of non-performing assets in the banking industry, strictly classify the quality of assets according to the principle that substance is more important than form, make real profits, make adequate provisions, supplement capital, and enhance the ability to resist risks. In addition, the data released on the same day also showed that at the end of the second quarter of 2020, the domestic and foreign currency assets of Chinas banking financial institutions reached 309.4 trillion yuan, an increase of 9.7% year-on-year. Among them, the domestic and foreign currency assets of large commercial banks amounted to 126.0 trillion yuan, accounting for 40.7%, and the total assets increased by 10.1% year-on-year; the domestic and foreign currency assets of joint-stock commercial banks were 55.7 trillion yuan, accounting for 18.0%, and the total assets increased by 11.8% year-on-year. Source: Xinhuanet editor in charge: Yang Bin_ NF4368

In view of the situation since this year, the mid-2020 work forum and discipline inspection and supervision (teleconference) meeting held by the CIRC mentioned that the bottom line of systemic financial risk should not occur. We should plan ahead of time to deal with the substantial increase of non-performing assets in the banking industry, strictly classify the quality of assets according to the principle that substance is more important than form, make real profits, make adequate provisions, supplement capital, and enhance the ability to resist risks.

In addition, the data released on the same day also showed that at the end of the second quarter of 2020, the domestic and foreign currency assets of Chinas banking financial institutions reached 309.4 trillion yuan, an increase of 9.7% year-on-year. Among them, the domestic and foreign currency assets of large commercial banks amounted to 126.0 trillion yuan, accounting for 40.7%, and the total assets increased by 10.1% year-on-year; the domestic and foreign currency assets of joint-stock commercial banks were 55.7 trillion yuan, accounting for 18.0%, and the total assets increased by 11.8% year-on-year.