Concerned about the China Banking _1639

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Concerned about the China Banking

Overall assessment of the situation Reporter: For now judge the overall banking industry in China, what kind of situation? From the bank's asset quality, management level, etc., if the comparison a few years ago, the situation is better, or in marking time, or is it something worse? Xia Bin: Generally speaking, China's current banking sector remains high despite the non-performing loans, high risk, but compared to previous years, the situation is constantly improving. Non-performing loan ratio and the amount of non-performing loans since last year, a Some overseas strategic investors in the shares of joint stock banks, have emerged rhythmic, according to law a good sign. Realistic to say that from the other four state-owned commercial banks, including some of the bank's internal management system, in number, the system on the scope, content, quality and fine degree, far from previous years and recent than a few years. This shows that in recent years, the bank's management level has improved significantly. In this regard, the bank itself, not enough publicity regulatory authorities, media reports not by much, so we do not understand. Of course, due to various reasons, compared with leading banks, we should recognize that there are still a considerable gap. Information behind the news reporter: Recently we noticed a series of news about the banking industry: For example, the central bank to tighten mortgage, the CBRC for investigating security ring of listed companies, and the Audit Commission disclosure Construction Bank, Agricultural release violations, you believe that in general, is to convey what kind of information? Xia Fu: I want to answer is that the three government departments at three different information to convey, there is no direct relationship between them. The central bank forecast the national economic development, according to the first half of this year the trend of money and credit growth, the normal control. I do not agree with you simply as The central bank as a pillar industry in national economic development, real estate market is still holding a positive supportive attitude, but the irrational real estate loans are not encouraged to send a message. Monetary policy is also part of the total regulation. Audit disclosure Construction Bank, Agricultural Development Bank violations, not previously disclosed, the disclosure is made, help to improve the transparency of the community to promote public opinion on the whole community, including the supervision of financial institutions to strengthen the regulation and use of public power constraints, it is our social progress. Despite some irregularities in the disclosure occurred in the past. If the Bank of China Banking Regulatory Commission of listed companies in the investigation of security circles, which is normal. If it is mutually guarantee, multiple security, is not illegal, there is no risk, should naturally be thoroughly investigated, be aware of. The three departments are three types of information conveyed, if there is common ground, it is that the three departments in strict accordance with the law and responsible work. 1.7 万亿元 occur when non-performing loans Reporter: Zhu Xiaohua, Wang Xuebing to Liu Jinbao, gives the impression that senior bankers from time to time fell. On from some deep-seated reasons, such as the incentive for bank executives and restraint, why is there such a phenomenon? Xia Bin: the financial sector and some senior figures sacked a number of other characters, including the underlying financial figures sacked, and some of the right people in other areas of the Lok Ma soil there may be some reasons for differences, but broadly similar. Incentive and restraint systems are the reason, there are reasons for people's own power, including the value of life, self-discipline, self-examination of the factors. Reporter: There is a data, the four state-owned banks in 1999 was 2 trillion yuan of bad loans, when stripped of the 1.4 trillion yuan. By 2002, three years but added 1.7 trillion yuan of bad loans,[link widoczny dla zalogowanych], how do you view this phenomenon surge in bad loans? Xia Bin: I've already said, this is not a two-year surge in bad loans, but rather a As some in the community including the media that, when stripped of the 1.4 trillion yuan of bad loans, how they added 1.7 trillion yuan of bad loans? This is mainly a lack of transparency with our past and related statistical information relevant to the work. 1999 年 stripped 1.4 trillion yuan of bad loans, there are specific stripping policy, included in the scope of non-performing loans is not stripped at all of the bad loans. Of course, in 1999,2000 owned commercial banks before and after some new bad loans, including sub-branch president to speed up work after the new statistics of the exchange non-performing loans. But I think that, 1.7 trillion yuan of bad loans in the past two years is not a lot of the new place, but the mid-90s, stripped 1.4 trillion yuan of bad loans has occurred before. Risk of bad assets is a top priority to resolve Reporter: How do you think the banking sector out of this cycle of bad debts? As the China Banking Regulatory Commission chairman Liu, one of the main objectives put forward in this year's four major state-owned commercial banks to non-performing loans down to do this, what do you think the CBRC will face problems and challenges? Xia Bin: thinking about the work from the bank, while efforts to improve management and internal control standards, earn profits, bad debts written off, on the other hand to prevent the generation of new loans in new bad loans, but to really implement is not easy. Because specific work is done by thousands of branches, to perform the operation by hundreds of thousands, to have a good credit risk approval process and internal control system, forcing hundreds of thousands or even millions of bank staff must be scrupulously to carry out a good system. As for the China Banking Regulatory Commission work challenges, to further improve the corporate governance structure, corporate governance and improve the bank's own internal control mechanism a series of work to do. Hard work by the CBRC, this series of things that certainly will be gradually brought the matter. But I always related to my article in the 2001 point: non-performing assets of China's financial sector is a major problem. The current priority is to resolve China's banking industry risk of bad assets. According to WTO commitments of my Government, in 2006, the large scale entry of foreign banks, and banks in China to start full-scale competition. In business, network settings and geographical restrictions will be abolished discriminatory, the bank's more stringent disclosure requirements. 2006, more than two years from the time, that time, our bank can withstood fierce competition, can prevent the occurrence of the phenomenon of moving deposits, the key to see whether the stock of non-performing assets to digest a lot of risk ( not just non-performing loans). To more than two years to digest a huge stock of risk, should show what kind of reform program, the CBRC is very difficult alone, needs, and the Ministry of Finance, People's Bank of coordination. Xin WTO commitments away from the little time left, can absorb large amount of bad assets, the stock four-line risk, is the biggest challenge the work of the CBRC. Otherwise, no matter how good grasp supervision, still less than in the In this regard needs to be noted is that even if individual indicators of non-performing loan ratio dropped, non-credit assets, bad assets are more banks to write off the bad debt write-off is not, its provisions and reserves fundamental lack of capital adequacy ratio and core capital adequacy ratio is very low, the bank's risk is still great. This, many people have not fully estimated. Some people even ask, a little afraid of what the low rate of capital adequacy, banks are not still a good run it? The simple answer is that I never could get state and national interests at stake. Reporter: According to your estimation, a number of other joint-stock commercial banks non-performing loan ratio, how? Is it possible to again cast as the year Guangdong and Hainan Development Bank, the country like the event? Xia Bin: Generally speaking, the present 11 joint-stock commercial banks, non-performing loans situation better than the big four state banks, especially some listed banks asset quality is good. China Banking Regulatory Commission is currently paying close attention to the four major banking supervision, it is also joint-stock commercial banks strict supervision put forward a series of regulatory requirements, and joint-stock commercial bank assets base case tangible clearer. This situation, as long as the continued poor asset quality of individual banks to take effective measures should not appear in Hainan and Guangdong International Trust and Investment and the Development Bank of the class of events. However, from the point of view of the market economy, there is no guarantee of future no longer appears Guangdong International Trust and Investment and the Hainan Development Bank of the class of events. Market exit and market access with a market economy phenomenon. I am afraid there is no market economy is not out of the market economy. Reporter: Recently the Audit Commission has found violations Construction Bank and Agricultural Development Bank, and other banking issues, you how to analyze this phenomenon? Xia Bin: I did not have a complete crash of the line statistics. But on the whole, which bank cases are more illegal things more, not to the number of news media to set. As you said, exposing some of the previous stage what the Bank of China, Construction Bank recently disclosed the violations and the Agricultural Development Bank. I think that every bank has a place on file, violation,
next just how many different issues. Generally speaking, the intensity of supervision in recent years to gradually strengthen the bank's own internal control mechanism of the gradual improvement has been placed on file, the number of violations is in a downward trend. Now the problems exposed, do not rule out some precisely because of work to strengthen the regulation and internal control problems found in the past created problems. China Banking Regulatory Commission and Central Bank should pay close attention to complete the spin-off : This year a prominent change is the establishment of the Banking China Banking Regulatory Commission. And since the establishment of the CBRC, we also note that a series of actions. Do you think the dual structure of the central bank and China Banking Regulatory Commission, strengthening supervision, improving asset quality, not better than when only the central bank, a significant improvement? Xia Bin: In this regard, I would like to repeat this year, before the establishment of the CBRC in January I, formed by a variety of reasons, is not a simple regulatory regime. Second, the current banking supervision issues, the problem is definitely not the primary regulatory system, but rather the problem of people by the people to improve the system and the implementation of system. Third, the establishment of the CBRC, the profits, it can concentrate manpower, expansion of manpower, so that regulators, professional, concentrate on grasping control. Expose some of the past do not pay attention to the contradiction between being more conducive to speed up the solution is not easy to solve the original problem; disadvantages, the former central bank supervision has eight types of objects, nearly 40,000 organizations, agencies is variable and is complicated, and defuse the risks of work was in a difficult process, friction soon split the cost and coordination must increase the cost, mess it will reduce the efficiency of supervision. This efficiency is probably no one to calculate. See from now on, it should be said that since its establishment, the CBRC has done a lot of work and achieved remarkable success. But can not see, from the establishment of the CBRC to the present discussion has been over the past one year, the current provincial, prefectural and county CBRC team has not yet fully in place, many of the separation of work have to do it little by little, can not concentrate on grasping control some supervision to do without making was delayed is a fact. Therefore, the current is important, as has been split, they should seize the time to complete the spin-off work, this process can not be too long, the longer the delay the work.