2023, as a critical year for the development of China's banking industry, has witnessed the introduction of a series of important events and policies, which have had a profound impact on the future development of the banking industry. These high-profile industry dynamics are worth reviewing again at the end of the year.
*Formation of the Financial Commission.
* Re-establishment of the Financial Work Committee.
In 2023, China has carried out major reforms in the financial sector and established the ** Financial Commission, and at the same time, the ** Financial Working Committee has also been re-established after a lapse of 20 years. In actual operation, these two institutions will fully perform the functions of personnel, party affairs, business and risk monitoring, with the aim of realizing the party's strong leadership over financial work and ensuring the effective implementation and implementation of financial policies. At the first financial work conference held at the end of October, China clearly put forward the goal of accelerating the construction of a financial power;The ** Financial Commission meeting held on November 20 deliberated and approved the division plan for key tasks related to promoting high-quality financial development.
*:* People's Network.
The State Administration of Financial Supervision and Administration was officially listed.
In 2023, the State Administration of Financial Supervision and Administration will be officially unveiled, and the State Administration of Financial Supervision and Administration will be responsible for the supervision of the financial industry in addition to the first industry, strengthen institutional supervision, behavior supervision, functional supervision, penetrating supervision, and continuous supervision, coordinate and be responsible for the protection of the rights and interests of financial consumers, strengthen risk management and prevention and disposal, investigate and punish violations of laws and regulations in accordance with the law, and act as a first-class directly affiliated institution.
*:* People's Network.
Measures for the Management of Capital of Commercial Banks was promulgated.
In 2023, the Measures for the Capital Management of Commercial Banks were promulgated, which clarified the capital management requirements and indicators of commercial banks and further regulated the capital adequacy and risk management of banks. This will help improve the bank's risk prevention and control capabilities and enhance the stability of the banking system.
*: Official website of the State Administration of Financial Supervision and Administration.
The central bank cut the reserve requirement ratio twice.
In 2023, the People's Bank of China (PBOC) will implement the RRR reduction policy twice, which will continue to strengthen the stamina of financial support for the expansion of domestic demand, which will help increase the long-term stable funds of financial institutions**, further increase capital investment in the real economy, and consolidate the positive trend of economic recovery.
*: Official website of the People's Bank of China.
The LPR rate has been cut twice.
The LPR (Loan Market ** Rate) is an important interest rate reference for the Chinese banking industry, and the LPR interest rate will be lowered twice in 2023. This initiative will help reduce the cost of borrowing for businesses and individuals, and promote the growth of investment and consumption.
*:* People's Network.
The interest rate on the existing mortgage has been lowered.
In order to stabilize the real estate market and promote residents' demand for housing purchases, the interest rate on existing mortgages will be lowered in 2023. By reducing mortgage interest rates, more home buyers are encouraged to buy homes and the real estate market is promoted to develop smoothly.
*: Official website of the People's Bank of China.
Financing policy support for real estate enterprises has been strengthened.
In 2023, the state will further increase financing policy support for real estate enterprises. By introducing more flexible financing methods and lowering the financing threshold, we will promote the development of real estate enterprises and the advancement of projects.
*: Official website of the People's Bank of China.
A number of banks have lowered their interest rates on deposits.
In order to further optimize the loan interest rate structure, a number of banks have successively adjusted the deposit interest rate in 2023. This move is aimed at reducing the cost of bank debt, thereby creating more room for lower lending rates. This is expected to facilitate the effective conversion of savings into investment and consumption, and further promote a smoother flow of funds into the real economy.
*:* People's Network.
The rates of wealth management products have been generally reduced.
In order to enhance the market competitiveness of wealth management products and protect the interests of investors, many bank-based wealth management companies have taken measures to reduce fees in 2023. These preferential rate measures are aimed at reducing the investment cost of investors, thereby enhancing the attractiveness and market competitiveness of wealth management products.
Sina Finance.
The past performance of bank wealth management shows the new rules.
In order to enhance the transparency of banks' wealth management products and the awareness of investor protection, the 2023 Bank Wealth Management Past Performance Display Welcome New Regulations. Banks will display the past performance of wealth management products more comprehensively and accurately to help investors better understand the risks and return expectations of products.
China Banking Association.
Overall, 2023 is an important year in the development of China's banking industry, and the introduction and adjustment of policies have had a significant impact on the banking industry. These events and policies will help improve banks' risk management capabilities, support the development of the real economy, and promote the stability and healthy development of the financial market.