According to the latest research report released by PwC based on listed companies, the growth rate of credit card business in the retail business of listed banks in the first half of 2020 is not only slower than that in the same period of last year due to the impact of the epidemic situation, but the non-performing balance and non-performing rate of 10 banks that disclosed bad data of credit card have double rise.
In an interview with China times, a senior executive of a listed bank in Zhejiang Province said: due to the lag of non-performing risk exposure between retail loans and corporate loans, commercial banks should continue to pay attention to the asset quality of credit card business in the post epidemic era.
In this context, Agricultural Bank of China, Ping An Bank, China CITIC Bank and other large and medium-sized banks have issued announcements to further restrict credit card violations in order to reduce risks. It is required that the cardholder shall not use any illegal or false consumption such as cash arbitrage, fraud, malicious bill swiping, etc. to arbitrage bank credit funds, points, rights and interests, prizes or value-added services; and shall not maliciously obtain rights and benefits or preferences by any fraudulent means or illegal tools.
In addition, in order to cope with overdue and digesting non-performing assets, banks have begun to issue credit card non-performing asset-backed securities in addition to upgrading credit card risk control. The reporter noted that cnabs website showed that many big banks of China Merchants Bank, Agricultural Bank of China and Bank of communications handled the bad burden by supporting securitization of credit card non-performing assets.
The overdue rate of credit cards is rising
According to the overall operation of the payment system in the second quarter, by the end of the second quarter, the total amount of credit granted by bank cards was 17.91 trillion yuan, and the total amount of credit cards overdue for half a year was 85.428 billion yuan, accounting for 1.14% of the outstanding credit balance of credit cards. With the disclosure of the interim report of listed banks in 2020, the relevant credit card business data of major commercial banks will also be released. The data shows that the non-performing rate and non-performing balance of most banks credit cards have both increased compared with the end of last year.
Specifically, the rate of non-performing loans of the six major banks increased simultaneously. Among them, the non-performing rate of credit cards of Bank of communications was the highest, reaching 2.9%, up 0.52 percentage points compared with the end of 2019. The lowest non-performing rate of CCB credit card was 1.17%, which was 0.14 percentage points higher than that at the end of 2019. In addition, the non-performing rate of four major banks has also increased to varying degrees. The non-performing rate of credit card of ABC is 1.81%, that of postal savings is 1.99%, that of Bank of China is 2.57%, and that of ICBC is 2.65%, which is 0.24%, 0.25%, 0.35% and 0.44% respectively compared with last year
Zhang Hui, chief risk officer of the Bank of communications, told reporters that the increase in non-performing loans of the bank was mainly caused by the double factors of increased non-performing credit cards and the risk exposure of existing customers. Among them, the new non-performing credit card business accounted for 26% in the first half of the year. However, with the further optimization of the new card issuing policy and strategy model, the non-performing credit card business began to decline from June. It is expected that the new non-performing credit card amount in the second half of the year will fall to the previous level.
In the first half of the year, the non-performing rate of credit card in joint-stock banks is not optimistic. Among them, Bohai bank had the largest rise and the highest non-performing rate, reaching 5.56%; Pudong Development Bank followed closely, reaching 3.31%, up 1.01 percentage points over the end of 2019; Minsheng Banks non-performing rate was 3.23%, up 0.75 percentage points over the end of 2019; China Merchants Banks non-performing rate was the lowest among the joint-stock banks, but it also increased by 0.5 percentage points compared with the end of 2019. The NPL rates of Ping An Bank, industrial bank and other credit cards were 2.35% and 2.01% respectively, with an increase rate of more than 0.5% compared with the end of 2019. It is worth mentioning that Huaxia Bank is the only joint-stock bank to disclose the non-performing loan rate of credit card, which is 0.79 percentage points lower than that at the end of last year, but the non-performing rate still reaches 2.44%.
As for the rising trend of bad credit card, the regulatory authorities have issued many documents to prompt the risk recently.
On June 24, the China Banking and Insurance Regulatory Commission (cbcirc) pointed out in the notice on looking back on the rectification of banking and insurance market chaos that the credit card business increased the solvency of customers or violated the rigid deduction regulations, breaking through the control of the upper limit of the total credit line; the amount of cash advance business was set too high, which did not meet the requirements of prudent management, the control of the use of funds was not effective, and the illegal flow direction was violated Non consumer areas.
Only five days later, on June 29, the Consumer Protection Bureau of the China Banking and Insurance Regulatory Commission pointed out in the consumption tips on the rational use of credit cards that some consumers excessively rely on credit cards for overdraft, and carry large amounts of credit card loans beyond their repayment ability, and even fall into the situation of repaying loans with loans and maintaining cards with cards, resulting in financial shortage and double repayment pressure. Consumers should have a correct understanding of the function of credit cards, rationally overdraft consumption, not to maintain cards with cards, repay loans with loans, let alone short-term borrowing for long-term use, and reasonably play the role of consumer loan instruments such as credit cards in supporting consumption.
As soon as the regulatory authorities voice fell, many banks began to move. In recent months, Guangfa, Ping An, CITIC, Bank of China, Agricultural Bank of China, Huaxia, Xingye and other banks have successively issued the announcement on further clarifying the use of credit card funds. It stipulates that the cardholder shall not maliciously obtain bank funds, points and rights and interests through informal transaction channels or other means, and clearly limits the use of credit card. If the cardholder does not standardize the use of the card, the bank may terminate all functions.
A staff member of the credit card center of a joint-stock bank told reporters: with more and more banks joining the army of risk control, credit cards have entered the era of the strictest risk control.
Several banks issue credit card NPLs
While upgrading credit card risk control, commercial banks not only actively digest non-performing assets through traditional verification and collection methods, but also begin to issue credit card non-performing asset-backed securities and sell credit card non-performing assets. Among them, there are state-owned commercial banks as well as large-scale joint-stock banks.
It is understood that the securitization of non-performing assets is a technology and process for asset owners to combine a part of the assets with poor liquidity to make the group of assets have relatively stable cash flow, and then improve the credit, so as to convert them into the securities flowing in the financial market. And the non-performing credit card loans as the underlying assets is the securitization of credit card non-performing assets. Chinas banking industry first issued credit card non-performing asset-backed securities in 2016, the first issuing institution was China Merchants Bank, with a total issuance amount of 233 million yuan.
According to the reporters statistics, as of the end of September, among the non-performing asset-backed securities projects issued this year, there were 19 projects with non-performing credit card loans as the basic assets, with a total issuance scale of 4.457 billion yuan. China Construction Bank (CCB) has issued two issues this year, totaling 843 million yuan. The scale of product Jianxin 2020-4 is 472 million yuan, and the scale of product Jianxin 2020-2 is 371 million yuan. ICBC also issued two transactions this year, with a total scale of 715 million yuan. The issuance scale of Jiaocheng 2020-1 of Bank of communications is 450 million yuan, and the single issuance scale ranks second. China CITIC Banks product issuance scale also reached 410 million yuan.
As for banks that have begun to issue credit card non-performing asset-backed securities, the staff of the credit card center of the above-mentioned joint-stock banks frankly said that due to the impact of the epidemic, the overall asset quality of retail customers began to decline, among which the bank credit card customers were not spared, and the asset quality began to be under pressure. Through the securitization of non-performing assets, commercial banks can realize the light load and reduce the pressure of operation. At the same time, in recent years, there has been no good way to deal with the problem of bad credit card assets. At present, the main method for commercial banks to dispose of non-performing credit card assets is to collect and write off, and the securitization of credit card non-performing assets is an important supplementary means to effectively solve this problem.
Generally speaking, the banks can activate the stock assets, release the credit scale, reduce the non-performing assets and improve the liquidity status by using the credit card non-performing assets to support the securities. However, there are risks in investing in such products. According to the staff of the Credit Card Center mentioned above. in truth. The reporter saw in the introduction of credit card non-performing asset-backed securities products issued by a large state-owned bank, the underlying assets of asset-backed securities are non-performing credit card claims without collateral guarantee, and the pool assets lack the secondary repayment source through the disposal of collateral. If the actual repayment amount of any borrower under the trust property does not reach the cash flow predicted based on historical data, the cash flow of the trust property may not reach the expected level, which may affect the repayment of principal and interest of the current securities, and the investor may suffer losses. Editor in charge: Meng Junlian editor in chief: ran Xuedong source: China Times editor in charge: Zhong Qiming_ NF5619
Generally speaking, the banks can activate the stock assets, release the credit scale, reduce the non-performing assets and improve the liquidity status by using the credit card non-performing assets to support the securities.
in truth. The reporter saw in the introduction of credit card non-performing asset-backed securities products issued by a large state-owned bank, the underlying assets of asset-backed securities are non-performing credit card claims without collateral guarantee, and the pool assets lack the secondary repayment source through the disposal of collateral. If the actual repayment amount of any borrower under the trust property does not reach the cash flow predicted based on historical data, the cash flow of the trust property may not reach the expected level, which may affect the repayment of principal and interest of the current securities, and the investor may suffer losses.
Editor in charge: Meng Junlian editor in chief: ran Xuedong