Small and medium-sized banks are an important financial force serving private enterprises, small and micro enterprises, and rural revitalization. At present, there are 3,912 small and medium-sized banks in the country, mainly including urban commercial banks, rural credit cooperatives, and village and township banks. Nationwide, small and medium-sized banks are operating steadily, their asset quality is stable, and their capital adequacy ratio, provision coverage ratio, and asset quality are generally at a good level. However, it should also be noted that a small number of small and medium-sized banks have accumulated some contradictions and risks in the early stage, and some institutions have higher risks.
In view of these risks, the State Administration of Financial Supervision and Administration recently proposed to make every effort to promote the reform of small and medium-sized financial institutions. Therefore, it is necessary to plan and implement the reform path and corresponding measures in accordance with the "one bank, one policy", resolve and dispose of stock risks in a prudent and orderly manner, and strictly control incremental risks, especially for small and medium-sized banks with high risks.
Mitigating risks starts from within. Risks often arise internally, and from the perspective of corporate governance, it is necessary to strictly prevent risks caused by the manipulation of small and medium-sized financial institutions by major shareholders. By optimizing the shareholding structure, standardizing the performance requirements of corporate governance entities, and establishing a corporate governance mechanism with mutual checks and balances and efficient operation, we will promote the organic integration of party leadership and corporate governance for small and medium-sized banks. Strictly prevent manipulation by major shareholders and insider control, and strictly prevent the transfer of interests and related party transactions in violation of laws and regulations.
It is indispensable to strengthen the management of senior executives and key personnel in small and medium-sized banks. It is necessary to strengthen the building of senior management teams and talent teams of small and medium-sized banks, and select and assign local small and medium-sized bank executives and important personnel in key positions in accordance with the criteria of being politically competent, competent, and professional. Large banks and national joint-stock banks, as well as some leading small and medium-sized banks, can transfer talents and technology to other small and medium-sized banks, improve the political quality, rule of law concept and professional ability of personnel in key positions of small and medium-sized banks, and promote the operation of small and medium-sized banks in accordance with laws and regulations.
In addition, it is necessary to strengthen the capital supervision of small and medium-sized banks. In line with the principles of early identification, early warning, early mitigation and early disposal of risks, we insist on cracking down early and small, and improve the correction mechanism with hard constraints. Focus on the "key people", "key things" and "key behaviors" of financial risks, strictly enforce the law, and dare to show the sword. Resolutely crack down on financial corruption and financial crimes, stimulate the endogenous mechanism of financial institutions to prevent and control risks, and prevent risks, control and stabilize them fundamentally and at the source, and build a "firewall" against risks.
In view of the risks that have already occurred, it is necessary to gradually improve the normalization mechanism for handling financial risks. Further clarify the implementation of the responsibilities of institutions, shareholders, executives, regulators, territories, and industries, and promote the formation of a joint work force. Actively and prudently prevent and control risks in key areas, strengthen credit risk management, and increase the disposal of non-performing assets. Promote financial institutions to carry out debt restructuring and replacement in a market-oriented manner to resolve risks.
Small and medium-sized banks should focus on their main responsibilities and main businesses to achieve sound operation. Detaching from the main business and blindly seeking speed and perfection are very prone to risks. To this end, small and medium-sized banks should adhere to the market positioning of serving the local area, serving small and micro enterprises, serving the "three rural" areas, and serving rural revitalization, and do fine and meticulous work based on the local area. It is necessary to give full play to the comparative advantages of localization, carry out differentiated and characteristic operations, give full play to their unique advantages, serve the real economy and thousands of households, and continuously improve the ability of long-term healthy operation and development. (This article**: Economy** Author: Jin Guanping).
*:Economy**.