In 2023, the batch transfer of non-performing assets of personal loans ushered in the first year of the second batch of pilots, bringing unprecedented opportunities to the entire industry. Looking ahead, the NPL disposal industry will continue to play an important role in the counter-economic cycle, revitalize inefficient financial resources, improve the efficiency of capital use, and make greater contributions to the country's high-quality financial development and economic security.
The non-performing personal loan market is approaching a trillion yuan, and the disposal business is far below the market demand
According to the data of the main regulatory indicators of the banking and insurance industry in the third quarter of 2023 released by the State Administration of Financial Supervision and Administration, at the end of the third quarter of 2023, the balance of normal loans of commercial banks was 1971 trillion yuan, of which the balance of normal loans is 1927 trillion yuan, and the balance of concerned loans is 44 trillion yuan, the balance of non-performing loans 32 trillion yuan, an increase of 24.4 billion yuan from the end of the previous quarter.
According to the 2023 China Financial Non-Performing Assets Market Survey Report released by Orient Assets, the non-performing ratio disclosed by commercial banks is currently underestimated, and 10% to 20% of the loans of concern may be converted into non-performing loans. This situation shows that the non-performing loan disposal market will continue to increase in the future, coupled with the debt ratio of other non-bank institutions such as consumer finance, small loans, insurance, car loans, financial leasing and other non-bank institutions, which is also increasing and considerable, providing a market size approaching the trillion level for the personal loan non-performing loan disposal industry.
The pilot project of non-performing approval and transfer of personal loans has been expanded, and the market participants have diversified their development
In 2023, the pilot unit for the batch transfer of non-performing personal loans will expand the types of institutions. According to the data of Yindeng Center, since 2023, state-owned banks and joint-stock banks have opened a total of 45 accounts. Policy banks, urban commercial banks, small and medium-sized rural banks, consumer finance companies, auto finance companies, financial leasing companies, and trust companies have also joined the "army of account opening".
Regulatory policies and regulations are becoming increasingly clear, forming a benign industry development environment
In March 2023, ** announced a new round of institutional reform, the abolition of the China Banking and Insurance Regulatory Commission, and the establishment of the State Financial Supervision and Administration Bureau, which means that the regulatory centralization of the financial industry has opened, marking the entry of non-performing assets into a new development cycle.
The continuous improvement of regulatory policies not only provides a strong guarantee for the rights and interests of financial consumers, but also provides clear guidance for the disposal of non-performing assets of personal loans, which helps to strengthen business norms and service standards, and objectively forms a benign development environment.
Industry outlook: opportunities and challenges coexist, and business upgrades need to be reborn
Looking forward to 2024, with the increasing maturity of the transfer pilot work, the personal loan non-performing asset disposal industry is facing a rare historical opportunity and has attracted great attention from the market. To achieve real profitability in the huge scale of the personal loan non-performing loan forwarding business market, major institutions are facing a higher test: they need to have strong personal loan non-performing asset valuation and subsequent disposal capabilities. At the same time, in the face of the policy environment of strong supervision + multiple measures in parallel, the efficient and rapid regularization and standardization of business is not only a test for every participant in the personal loan non-performing disposal industry, but also an opportunity for self-improvement and development. Taking Guanglegal as an example, in accordance with the guidelines of the China Banking and Insurance Regulatory Office, we innovate and optimize the process of disposing of non-performing assets, and provide efficient, high-quality and professional legal services for non-performing personal loans such as credit cards, credit loans, and online loans. The core advantage is the establishment of a strict risk control system to ensure that the underlying capital flow is transparent, the underlying assets are real, and the risk of asset disposal is scientifically managed. In 2023, Guanglu completed the strategic upgrade of central enterprise holding, effectively enhancing its core competitiveness, and fully demonstrating the advanced and leading nature of Guanglu as a "pioneer in personal debt reconciliation" in the industry. In the future, the transformation of more enterprises in the industry still needs to go through labor pains before they can break out of the cocoon and be reborn, seize the opportunity to face the difficulties, and the top can turn the tide against the market!
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