Small and medium-sized banks are busy with bad debts

category:Finance
 Small and medium-sized banks are busy with bad debts


On August 10, the CBRC released the data of major banking regulatory indicators in the second quarter, which showed that in the first half of the year, the cumulative net profit of commercial banks reached 1.0 trillion yuan, a year-on-year decrease of 9.4%, and the average profit margin of capital was 10.35%. The average return on assets of commercial banks was 0.83%, down 0.15 percentage points from the end of last quarter.

Dong ximiao, chief researcher of Zhaolian finance, said that in the first half of the year, the net profit of domestic banking industry decreased significantly compared with that of the same period. On the one hand, banks made a large margin of profits to the real economy, on the other hand, commercial banks increased the provision for loan loss to cope with the increasing pressure of bad debt risk. In the first half of the year, the loan loss provision of domestic banking industry increased by 500.3 billion yuan compared with that at the end of last year, which affected the profitability of the industry to some extent.

But the work has to go on. Zhang Qiang told reporters. Recently, the head office has arranged the focus of work in the second half of the year. First, it will increase the credit supply to the real economy, and give higher loan interest rates to some enterprises that are greatly affected by the epidemic; second, we should take risk response measures for the continuous rebound of non-performing loans.

The head of the corporate credit department of a state-owned bank in East China told reporters that they also received similar job requirements. In response, they formulated a new strategy for obtaining customers Loans: increasing the visits of local enterprises to be listed and providing higher low interest credit support, because these local enterprises are easier to get the support of local government policies, which not only makes the credit security higher It can also drive the upstream and downstream small and medium-sized enterprises in the industrial chain to obtain supply chain financial loans, so as to achieve the goal of increasing the real economy credit.

However, under the pressure of expected salary decline of the whole team, how to motivate them to work wholeheartedly, not only to increase credit supply for the real economy, but also to effectively take measures to prevent bad debt risk is not small. The above-mentioned state-owned banks spoke frankly to the head of the public credit department.

Big banks are busy weighing lending and risk control

According to Wang Yifeng, chief banking analyst of Everbright Securities, the growth rate of net profit of domestic banking industry in the first half of the year decreased by 9.4%, reflecting that the banking industry increased the recognition and disposal of non-performing loans and increased the strength of loan provision during this period. Among them, the reason why domestic banks have greatly increased the strength of provision is that they need to make dynamic provision arrangements for relevant potential bad debt losses under the expected loss method stipulated in the new accounting standards for financial instruments (IFRS9), and take preventive measures against the return of non credit assets and off balance sheet assets.

Banks also need to use their money on the cutting edge - only by investing the necessary funds to strengthen the tracking and control of post loan management can we effectively deal with the potential bad debt risk in advance. What makes Zhang Qiang even more worried is that many team members are worried that their salary will shrink with the decline of net profit of the bank, which will lead to a decline in work enthusiasm. The reason is that the bank will reserve a performance bonus from the employees salary every month, and decide whether to pay it in full at the end of the year according to the net profit of the head office and the progress of bad debt disposal. Now the banks net profit in the first half of the year is declining, indicating that the bonus is likely to shrink a lot at the end of the year.

However, Zhang Qiang found that many employees admitted that it was more difficult to expand the corporate credit business. On the one hand, many small and medium-sized enterprises required banks to lend at low interest rate (the annual interest rate was about 5%), but they found that the actual operating risk of these enterprises was not commensurate with the low interest lending, and the reasonable loan risk pricing was at least more than 7% annually; on the other hand, the bank risk control department was still under strict scrutiny As long as they find that there is negative information in the industry or core enterprise of the industry chain where the loan application enterprise is located (including the decline of industry income growth or the risk of industry fluctuation, or the core enterprise has large layoffs or overdue payment of financing products), they will directly reject the corresponding loan application.

Therefore, Zhang Qiang suggested that employees take alternative measures to generate income, such as visiting local companies to be listed, and the latter, as the core enterprise, provide supply chain financial loans to improve the loan volume.

Although the increase in bank credit has brought greater support to our business development, we are worried that too easy money and low financing cost will make our business strategy more radical, which is not conducive to the long-term and stable growth of enterprises. The person in charge of the enterprise said.

Zhang Qiang even heard that individual banks also quietly put credit resources into the real estate sector in disguise. We envied them at first, because it was a good way to increase credit and manage risk (because of rising house prices and rising sales in some areas), he said He pointed out. However, with the recent emphasis of many banking and insurance regulatory bureaus on resolutely preventing the return of chaos in real estate loans, his bank quickly launched a self inspection on the investment of credit funds. Once it is found that the credit funds flow to real estate in disguised form, the relevant responsible person will be directly held accountable.

Agricultural commercial banks rush to deal with bad debt pressure

According to the CBRC data, in the first half of the year, the net profit of large state-owned banks and rural commercial banks dropped by 12.04% and 11.41% respectively. Meanwhile, the non-performing loan ratio of large commercial banks in the second quarter was 1.45%, up 6 basis points from 1.39% at the end of the first quarter, while the non-performing loan ratio of rural commercial banks further rose to 4.22% from 4.09% at the end of the first quarter, up 13.9% The balance of non-performing loans increased from 683.1 billion yuan at the end of the first quarter to 736.5 billion yuan.

The deputy president of a rural commercial bank in charge of public credit disclosed to reporters that his main task recently is to properly handle non-performing loans as much as possible. In the first half of the year, there were several million level bad loans in his department. According to the internal regulations of the bank, the year-end bonus of the whole team will be intercepted to write off the bad credit losses.

At present, we are communicating with the local government to provide government financing guarantee institutions for some local enterprises with good fundamentals but greatly affected by the epidemic, and then banks will provide new loan funds for enterprises to revitalize their business and repay previous loans. In this way, we can also reduce the scale of bad debts in disguise. He told reporters. According to the regulations of his agricultural business behavior, if the team can solve a certain amount of bad debts, the year-end bonus will be paid in full.

At the same time, he also strengthened communication with local AMC companies, striving for the latter to acquire more credit bad debts to help them make statements of bad debts.

At the beginning of the year, in order to cope with the increasing risk of bad debts of corporate business under the impact of the epidemic, his agricultural commercial bank decided to increase the layout of financial management business. However, after several months of practice, they found that the gap between reality and ideal was too large. Many bank employees did not understand the latest product development trend of the financial market, and the back office technical system could not support the bank to sell public funds on a commission basis. Its a pity that now there is no voice on bank merger and special debt capital increase, which makes the team a bit frustrated. The vice president sighed. At present, he is most worried that because of the continuous decline in revenue, some grass-roots branch employees have considered leaving, which will take away a lot of deposit customer resources and the latest business situation change information of the enterprise. On the contrary, it will make the bank business expansion and bad debt disposal more difficult. (author: Chen Zhi, editor: Zhang Xing) source: 21st century economic report editor in charge: Wang Xiaowu_ NF

At the beginning of the year, in order to cope with the increasing risk of bad debts of corporate business under the impact of the epidemic, his agricultural commercial bank decided to increase the layout of financial management business. However, after several months of practice, they found that the gap between reality and ideal was too large. Many bank employees did not understand the latest product development trend of the financial market, and the back office technical system could not support the bank to sell public funds on a commission basis.

Its a pity that now there is no voice on bank merger and special debt capital increase, which makes the team a bit frustrated. The vice president sighed. At present, he is most worried that because of the continuous decline in revenue, some grass-roots branch employees have considered leaving, which will take away a lot of deposit customer resources and the latest business situation change information of the enterprise. On the contrary, it will make the bank business expansion and bad debt disposal more difficult.