16 non-performing asset packages were intensively put on the shelves.
Text丨Bear CubProduced by丨Heat Wave FinanceWith the expansion of the non-performing loan transfer pilot for one year, more and more banks have successively put the first phase of personal consumption and business credit non-performing loan asset packages to Yindeng Center for public transfer.
Heat Wave Finance noticed that recently, rural credit cooperatives, rural commercial banks and other types of banks have been very active in the non-performing asset transfer sector of Yindeng Center, among which small and medium-sized banks in Gansu are the most prominent.
The quality of non-performing asset portfolios of small and medium-sized banks varies greatlyAt the end of December last year, the China Banking and Insurance Regulatory Commission (CBIRC) issued the Notice on Launching the Second Batch of Pilot Projects for the Transfer of Non-Performing Loans, which included urban commercial banks and rural small and medium-sized banking institutions registered in Beijing, Hebei, Inner Mongolia, Liaoning, Heilongjiang, Shanghai, Jiangsu, Zhejiang, Henan, Guangdong and Gansu. At present, the pilot notice has been issued for nearly a year, and a number of banks have opened non-performing loan transfer business accounts and launched the announcement of the transfer of the first phase of non-performing asset packages.
As of December 1 this year, 638 banks (including branches) have opened non-performing loan transfer business accounts, of which 105 are small and medium-sized banks in rural areas, which has more than doubled compared with the beginning of this year.
However, the proportion of small and medium-sized banks that have opened accounts for the transfer of non-performing asset packages is not large. According to incomplete statistics, since the beginning of this year, small and medium-sized banks have launched a total of 25 non-performing asset packages, involving four regions including Jiangsu, Guangdong, Beijing and Gansu, of which small and medium-sized banks in Gansu have the most, with 16 non-performing asset packages.
It is worth mentioning that, compared with other regions where non-performing assets are transferred by rural commercial banks, there are more types of banks in Gansu, such as Gansu Longxi Rural Commercial Bank, Dingxi Rural Commercial Bank, Kangxian Rural Commercial Bank, and Rural Credit Union, as well as rural credit unions, such as Heshui County Rural Credit Union, Gaolan County Rural Credit Union, Jingtai County Rural Credit Union, etc.
According to the requirements of the Notice on Carrying out the Pilot Work on the Transfer of Non-Performing Loans, the types of transferable assets of small and medium-sized banks are single-family non-performing loans to corporate enterprises and batch personal non-performing loans. Judging from the information disclosed by Yindeng Center, the transfer of non-performing assets of small and medium-sized banks in Gansu focuses on personal consumption loans, business loans and credit card non-performing assets.
Although it is a small and medium-sized bank, the quality of its non-performing asset portfolio is not bad. Taking the "Announcement on the Investment Promotion of the Transfer Project of Non-performing Loans for Personal Consumption and Business in the First Phase of Gansu Lixian Rural Commercial Bank Co., Ltd. in 2023" as an example, the non-performing asset package involves 74 households with a total of 83 non-performing loan records. The loan amount is 1290660,000 yuan, of which the principal is 1002920,000 yuan. Interest 287730,000 yuan.
The most obvious feature of the non-performing asset package is that the overdue time is short, nearly half of the overdue ones are overdue for less than one year, and the principal accounts for 90 percent within three years of overdue19%, and the weighted average age is 45 years old, all loans can be contacted by me, more than 7% have not been outsourced to collect, and all loans have not entered the litigation stage.
Of course, not every small and medium-sized bank asset package is like this, "Gansu Longxi Rural Commercial Bank Co., Ltd. *** 2023 Phase 1 Personal Business Credit Bad Credit Loan Transfer Project Investment Announcement" shows that the loan amount of the non-performing asset package is 1501220,000 yuan, of which the principal is 857760,000 yuan, interest 643460,000 yuan, although the interest is very high, but it is overdue for more than 6 years accounts for 7124%, of which 2141% were overdue for more than 10 years.
Rural small and medium-sized banks test the transfer of non-performing asset packagesOn October 11 this year, the "Implementation Opinions on Promoting the High-quality Development of Inclusive Finance" was issued, which clearly proposes to increase efforts to dispose of non-performing assets, promote the implementation of non-performing loan disposal support policies as soon as possible, and replenish the capital of small and medium-sized banks through multiple channels. According to the 2022 China Financial Non-Performing Assets Market Survey Report, small and medium-sized banks are the financial institutions with the greatest pressure to dispose of non-performing assets.
In the eyes of industry insiders, there are difficulties in the transfer of non-performing loans of local banks, such as the lack of channels and methods for the disposal of non-performing assets. Traditional small and medium-sized banks mainly rely on their popularity and geographical advantages, and simply dispose of them according to their own conditions.
However, under the current situation, relying on small and medium-sized rural banks to resolve risks through conventional methods such as debt repayment, write-off, and restructuring is becoming less and less effective. At this time, the introduction of professional processing institutions is very important for small and medium-sized banks.
Compared with debt-to-equity swap and non-performing assets, the batch transfer of non-performing assets has the advantages of low threshold, simple operation and short term, and for the backlog of non-performing assets of small and medium-sized banks, the transfer can quickly alleviate the pressure of non-performing assets, quickly realize the off-balance sheet of non-performing assets, and reduce the disposal cost.
However, it has been less than 3 years since the pilot transfer of non-performing assets of banks began in 2021, and at present, it is mainly dominated by large banks, and there are few cases of local banks, and most areas are still in a wait-and-see attitude.
The large-scale use of Yindeng Center by small and medium-sized rural banks in Gansu Province to transfer non-performing assets is a big stride, and if the results are good, it will play a role in promoting small and medium-sized banks in other regions. In addition, the participation of small and medium-sized banks has allowed non-performing disposal institutions such as AMC to explore new business highlights from it.
For local AMC institutions, it is also a good opportunity for small and medium-sized banks to speed up the batch transfer of non-performing assets. The "Guiding Opinions on Guiding Financial Asset Management Companies to Focus on Their Main Business and Actively Participate in the Reform of Small and Medium-sized Financial Institutions to Reduce Risks" has greatly relaxed the scope of operation of financial AMCs, included concerned loans in the scope of non-performing asset transfer for the first time, and encouraged asset management companies to efficiently dispose of non-performing assets, giving asset management companies more flexibility and a larger market.
In such a relaxed environment, asset management companies may obtain greater returns by investing appropriately in some non-performing assets, increasing their value and then selling them. Other downstream institutions around the disposal of non-performing assets can also drink the "broth" as a result.