China Banking Regulatory Commission reiterates to strengthen supervision
The high-risk institutions, shadow banks, financial groups established in violation of laws and regulations, and online lending are highlighted.
A few days ago, the China Banking Regulatory Commission held the 2020 National Banking and Insurance Industry Supervision and Management Work Conference. The meeting emphasized that 2020 is the year to end the battle to prevent and resolve financial risks. We must resolutely win this battle so that financial work is always under strict supervision, and highlights high-risk institutions, shadow banks, and illegal activities. Several high-risk areas such as illegally established financial groups and online lending.
Earlier, the “Guiding Opinions on Promoting the High-quality Development of the Banking and Insurance Industry” issued by the China Banking Regulatory Commission on January 4 also proposed that it is necessary to continue to strengthen supervision in the future, take systemic risk prevention as the bottom line, and accurately and effectively prevent and resolve various Risks to ensure the steady development of the banking and insurance industries. The CBRC frequently reiterated its insistence on strengthening supervision, indicating that the financial industry is still a year of “strict supervision” this year.
Thanks to the strict supervision in recent years, China’s banking and insurance industries are generally stable. Key indicators such as non-performing loan ratio, capital adequacy ratio, and liquidity ratio are in a reasonable range, and financial risks in key areas have been effectively controlled. For example, the size of shadow banking has continued to shrink for three years, non-compliant online lending institutions have exited on a large scale, and the risk of hidden debts of local governments has gradually been resolved. However, we must clearly recognize that the future risk situation is still complex, and there are many unknown uncertainties in various fields at home and abroad. In the face of the “black swan” and “gray rhino” that may appear at any time in the financial market, regulators must be cautious. Handle it properly.
Against the background of preventing and resolving major financial risks and promoting the high-quality development of the banking and insurance industry, we can sort out the key points of the CBRC’s supervision this year, mainly including the following aspects: First, to effectively deal with various types of high-risk financial institutions, especially the key points The risks of financial holding groups and the risks of small and medium-sized financial institutions have adopted a variety of ways to accurately mitigate risks; the second is to orderly resolve the risks of shadow banking, and to implement consistent, penetrating, and full-coverage supervision of shadow banking operations to prevent funds from becoming unreal; The third is to continue to crack down on illegal financial institutions and illegal financial activities, consolidate the responsibilities of all parties, monitor early and clean up in a timely manner; the fourth is to strengthen risk prevention and control capabilities in key areas, such as establishing a financial supervision system for the real estate market, Stress tests and the resolution of hidden debt risks of local governments.
In addition to high-risk institutions, shadow banks, financial groups established in violation of laws and regulations, online lending and other high-risk areas, it is worth noting that fintech has also been included in the key regulatory scope of the CBRC. This is because fintech, as the fastest growing and most compelling financial product in recent years, has improved the efficiency and coverage of financial services on the one hand, but also brought new regulatory issues on the other. It is understood that some fintech companies have been transformed from the original P2P network platform, and some fintech companies and emerging financial services are engaged in illegal financial activities under the guise of fintech and big data, such as using a fictitious transaction background to collect credit funds , To induce customers to take illegal collection methods after loans, or to illegally misappropriate and trade user information, which constitutes improper gains.
In this regard, the “Opinions” pointed out that it is necessary to study and formulate the supervision system for fintech companies and strengthen the supervision of emerging financial businesses and business formats. Therefore, the regulatory system must keep up with the pace of technological development, identify problems in time, and make up for shortcomings. For current fintech companies and emerging financial businesses and formats, banks and insurance companies should be urged to establish reasonable access to relevant cooperative institutions, Evaluation and exit mechanism, drafting a list of restrictive behaviors, strengthening the supervision and management of cooperative agency behaviors, such as credit risk control and fund use compliance review, and formulating emergency plans for possible risks.
At present, China’s economy is changing from a high-speed growth stage to a high-quality development stage. The high-quality development of the economy is inseparable from the high-quality development of finance. The banking and insurance industries, as important parts of finance, have stability and high-quality development capabilities. It is the top priority of supervision. To this end, in the end of the battle to prevent and resolve financial risks, the banking and insurance industries must take the lead in strengthening risk prevention and control, effectively resolve the stock and incremental risks in key areas, build a risk firewall, and prevent the intersection of financial risks Infect and strengthen the ability to resist risks, and provide conditions for high-quality financial development.
□ Pan Helin (financial commentator) editor Chen Li proofreading Xue Jingning