On January 30, the State Administration of Financial Supervision held the 2024 work conference to set the tone for the next stage of banking and insurance industry supervision and industry development. This is the first annual supervisory work meeting held by the State Administration of Financial Supervision after its establishment, so it has attracted wide attention. Risk prevention and control is the eternal theme of financial work, and it is the primary responsibility and top priority of financial supervision。"Continue to effectively prevent and resolve risks in key areas, accelerate the pace of reform of small and medium-sized financial institutions, and advance the reform of rural credit cooperatives in an orderly manner. A number of high-risk institutions have been properly dealt with, and new results have been achieved in cracking down on illegal financial activities. The meeting summarized the achievements of the banking and insurance industry in the past year. At present, China's key areas of reform and risk reduction have entered the deep water area, and the rest are "hard bones" that are difficult to bite, and the task is complex and arduous. Different from the past, this work conference has focused more on the prevention and resolution of financial risks, strong supervision and strict supervision, and ranks in the forefront of key work. We will make every effort to promote the reform of small and medium-sized financial institutions to reduce risks, actively and prudently prevent and control risks in key areas, comprehensively strengthen the "five major supervisions", and take a step forward to strengthen the coordinated ...... of central and local supervisionIn 2024, the "construction drawings" of reforming and reducing risks and strengthening supervision will be clearly displayed. Next, what are the key areas to prevent and resolve financial risks? How can small and medium-sized financial institutions grasp the timeliness and effectiveness of the reform and reduce risks, and promote the formation of a joint work force? Where will financial regulation go? Focusing on these issues, the Financial Times reporter interviewed a number of experts. We will make every effort to promote the reform of small and medium-sized financial institutions to reduce risks
* Financial Work Conference Requirements,".Deal with the risks of small and medium-sized financial institutions in a timely manner”。Among the eight key tasks deployed by the State Administration of Financial Supervision in 2024, making every effort to promote the reform of small and medium-sized financial institutions is placed in the first place. According to the data, there are 3,912 small and medium-sized banks in the country, with total assets of 110 trillion yuan, accounting for 28% of the assets of the banking industry. From a national perspective, small and medium-sized banks are currently operating steadily, their asset quality remains stable, their capital strength has been significantly enhanced, their capital adequacy ratio, provision coverage ratio and asset quality are generally at a good level, and their operating and regulatory indicators are at a reasonable and healthy level. However, there are also a small number of small and medium-sized banks that have accumulated some contradictions and risks in the early stage, and some small and medium-sized banks have relatively high risks. Xiao Yuanqi, deputy director of the State Administration of Financial Regulation, said at a press conference of the State Council Information Office that the number of small and medium-sized banks at risk, total assets, and total non-performing assets account for the entire banking industry, as well as the proportion of small and medium-sized banking systems are very low. The State Administration of Financial Supervision implements high-intensity supervision to promote the gradual convergence of its risks, and at the same time plans with local party committees, ** and relevant departments to implement the path of reform and risk reduction, resolve and dispose of stock risks in a steady and orderly manner, and strictly control incremental risks. In an interview with the Financial Times, Wang Yifeng, chief analyst of the financial industry at Everbright**, said that since 2023, the State Administration of Financial Supervision has implemented policies by category, one line and one policy, promoted the reform of small and medium-sized financial institutions, "targeted bomb disposal" for risk-exposed institutions, strengthened the corporate governance of small and medium-sized financial institutions, urged them to focus on their main responsibilities and main businesses, supported multi-channel capital replenishment, and continued to consolidate the foundation for the stable operation of institutions. With regard to the policy ideas for the reform of small and medium-sized financial institutions this year, the meeting called for grasping the timeliness and efficiency, and carrying out the work in a planned and step-by-step manner. Improve the normalization mechanism for financial risk disposal, implement the responsibilities of institutions, shareholders, executives, regulators, territories, and industries, and promote the formation of a joint work force. Dong Ximiao, chief researcher of Zhaolian, told the Financial Times that "grasping the timeliness" requires that when promoting the reform of small and medium-sized financial institutions, it is necessary to reduce risksOne isIt is necessary to seize the favorable opportunity to promote the reform and risk reduction work in a timely manner; The second isIt is necessary to accurately grasp the limit, not only to strengthen the determination to reform and reduce risks, but also to advance in a steady and orderly manner to prevent secondary risks; The third isTo truly achieve results, we should promote the steady development of small and medium-sized banks through reform and risk reduction, and prevent and resolve systemic financial risks. Zeng Gang, director of the Shanghai Finance and Development Laboratory, told the Financial Times that in terms of preventing and resolving the risks of small and medium-sized financial institutions, reform and risk reduction are actually inseparable. For example, in the "one province, one policy" to promote the reform of provincial associations, it is a vivid practice of combining risk management of small and medium-sized rural banks with deepening reform and promoting high-quality development, including the village and township banks that have been frequently restructured since last year. In addition,It is also important to strengthen the main responsibility of banks。Dong Ximiao said in particular, "small and medium-sized financial institutions reform risk can not only rely on national policies and financial management departments, institutions to play the main responsibility is the most important, to formulate a scientific and pragmatic development strategy, and gradually embark on the road of characteristic and refined development." ”Actively and prudently prevent and control risks in key areas
Preventing and resolving financial risks is the eternal theme of financial work. Since 2023, the work of preventing and mitigating risks has been progressing in an orderly manner, financial risks in key areas have been steadily resolved, and the overall operation of the financial system has been stable. For this year's risk prevention work, this meeting clearly deployed three areasOne isstrengthen credit risk management and increase the disposal of non-performing assets; The second isAccelerate the implementation of the coordination mechanism for urban real estate financing, urge financial institutions to vigorously support the construction of the "three major projects" such as affordable housing, and implement the requirements for the management of operating property loans; The third isCooperate with the prevention and resolution of local debt risks, and guide financial institutions to carry out debt restructuring and replacement in a market-oriented manner. Asset quality is the lifeblood of the banking industry。According to data released by the State Administration of Financial Regulation, the asset quality of China's banking industry remained stable last year. According to preliminary statistics, at the end of 2023, the balance of non-performing loans of banking financial institutions will be 395 trillion yuan, an increase of 149.5 billion yuan from the beginning of the year. Non-performing loan ratio 162%。The ratio of loans overdue for more than 90 days to non-performing loans of commercial banks was 842%, which remains at a low level. The disposal of non-performing assets was 3 trillion yuan throughout the year, and the disposal efforts were maintained. Zeng Gang said that in the stage of economic restructuring and adjustment, the potential credit risk faced by the banking industry has risen. For banking institutions, it is necessary to take timely measures at the front end to optimize the credit structure, control the new credit supply to excess capacity and excessive borrowing entities, and invest more resources in doing a good job in the "five major articles". At the same time, it is also necessary to do a solid job in asset classification, increase provisions and disposal of non-performing loans, replenish capital through multiple channels, and consolidate the foundation for stable operation. It is worth paying attention to,Intensifying the collection of non-performing assets is also an important starting point for optimizing the credit structure and revitalizing the credit stock。According to the data disclosed by the State Administration of Financial Regulation, banking institutions have stepped up the disposal and collection of non-performing assets for many years under the vigorous promotion of the regulatory authorities. Since 2017, a total of 18 trillion yuan of non-performing assets of banks have been disposed of, revitalizing a large number of inefficient financial resources and investing funds in areas that are more efficient, more promising and more in need of support. From the perspective of capital investment, the vast majority of credit funds are used in the real economy, actively meeting the financing needs of enterprises, residents and other market entities, which strongly supports the economic recovery and boosts effective demand, which is conducive to further optimizing credit risk management and reducing potential credit risks in the banking industry. Financial regulation is "toothy and thorny", angular
Strong financial regulation is one of the key core elements of a financial powerOne. Since 2023, the State Administration of Financial Supervision has adhered to the supervision in accordance with laws and regulations, strengthened institutional supervision, behavior supervision, functional supervision, penetrating supervision and continuous supervision, promoted the construction of a financial regulatory system and mechanism with full coverage and no blind spots, and effectively improved the effectiveness of financial supervision. 6 regulations and 18 normative documents have been issued to accelerate the improvement of the regulatory big data platform and implement the overall responsibility ...... for the protection of the rights and interests of financial consumersIn the past year, the State Administration of Financial Services (FSS) has made great efforts to make up for the shortcomings of the system, further improved the legal and regulatory system, made substantial progress in the revision of the Banking Supervision Law of the People's Republic of China and the Insurance Law of the People's Republic of China, and issued a number of regulatory rules such as the Measures for the Capital Management of Commercial Banks. This year, the deterrent effect of regulatory law enforcement continued to be strengthened, and the effectiveness of supervision was effectively improved. In 2023, 4,750 banking and insurance institutions will be punished, 8,552 responsible persons will be punished, and a total of 78 fines and confiscations will be imposed3.8 billion yuan, a significant increase in fines and confiscations compared with 2022. In the past year, the crackdown on illegal financial activities has achieved remarkable results, a number of major cases have been investigated and dealt with, a number of lawbreakers and criminals have been severely punished, the average annual number of illegal fund-raising cases has dropped sharply from the peak, and the rate of closing cases with more than 100 million yuan has increased significantly. In the past year, the work pattern of "big consumer protection" has been gradually implemented, the concept of consumer rights protection has been widely disseminated, and the complaint channels have been greatly unblocked. The key is to clarify regulatory responsibilities, strengthen coordination and cooperation, eliminate regulatory gaps and blind spots, achieve full coverage of financial supervision, and strictly enforce the law in all aspects of market access, prudential supervision, and behavior supervision. In this regard, the meeting pointed out that it is necessary to resolutely implement the requirements of strong supervision and strict supervision, comprehensively strengthen the "five major supervisions", strictly control the access gates, strict risk monitoring, and serious early intervention and correction. Pay close attention to "key things", "key people" and "key behaviors", strictly enforce the law, dare to show the sword, and be consistent, strict and investigate to the end. To strengthen financial supervision, it is also necessary to further strengthen the coordination of central and local supervision, strengthen information exchange and sharing, and coordinate key tasks, so as to effectively share responsibilities, answer the same questions, and make efforts in the same direction. Dong Ximiao said that while emphasizing the full coverage of financial supervision, it is necessary to strengthen the "central and local coordination" and improve the efficiency of local financial supervision. With the advancement of the reform of the local financial regulatory system, how to promote the coordination between the financial management department and the local government in financial supervision and risk disposal, so as to reduce the overlap and intersection of supervision and form a joint force of central and local supervision, needs to be further studied and explored. Everybody is watching
* Another "new trick"! Approaching the Chinese New Year, come and get financial anti-fraud strategies.
ICBC, CCB, Ping An Bank ......Since the beginning of the year, these banks have "changed"!
Tonight, oil prices are going to adjust!
**: Financial Times client.Reporter: Xu Beibei.
Editor: Yunyang.
E-mail: fnweb@126com Follow the Financial Times*** for more exclusive news.