On The Eve Of Listing, ABC'S Performance Improved Significantly.

The regulatory authorities sent "big gifts", and everything was ready on the eve of the Agricultural Bank's listing.

Reporters confirmed from relevant sources that ABC earlier this month received a "big gift" from the Ministry of finance, the central bank and the CBRC, and the regulatory authorities allowed the "three rural" pilot counties branch of the Agricultural Bank to adopt the business unit system, and to enjoy the same fiscal and tax policies as compared with the rural credit cooperatives.

At the same time, the Ministry of Finance and the State Administration of Taxation jointly issued a document, which was exempt from the sales tax of interest income from small loans to farmers in financial institutions from 2009 to 2013.

Brokerage analysts expect that the two preferential policies will save billions of costs for ABC in the future and greatly enhance the performance of ABC.

The introduction of the policy will greatly help the bank to make a listing price, and at the same time, it will help stabilize investors' confidence in ABC.

It is understood that the regulatory agencies have identified the 561 pilot counties in Sichuan, Chongqing, Hubei, Guangxi, Gansu, Jilin, Fujian and Shandong in 8 provinces and municipalities.

However, the County Department limited to carry out savings and loan business within the county level, do not cross County business.

In terms of tax policy, these County branches will get the same policy as the rural credit cooperatives, that is, enjoy 3% business tax, 2 percentage points lower than before. County branches in 3 provinces located in the earthquake stricken areas are exempt from corporate income tax according to the earthquake area credit cooperatives.

And the provinces that are not in the pilot area can enjoy the policy of reducing the interest income of farmers' small loans.

In addition, the exemption of institutional management fee will also bring greater cost savings to ABC.

At the end of 2009, the total assets of ABC were about 8 trillion and 500 billion yuan, and the regulatory fees paid to the CBRC should be paid in proportion.

In contrast to the rural credit cooperatives, ABC will enjoy exemption from regulatory fees and is expected to save hundreds of millions of yuan.

The deposit reserve ratio, which is implemented by the rural credit cooperatives, will also make it more abundant for the bank to support the county.

At present, the large state-owned banks carry out 17% of the deposit reserve ratio, and the rural credit cooperatives and village banks carry out the 13.5% deposit reserve rate. If 561 sub banks implement the deposit reserve ratio according to 13.5% standard, they will release a large amount of funds.

This will not only make the support fund more abundant, but also improve the overall assets income level of ABC.

It is understood that the regulatory agencies are also clear that the county branches that are included in the reform of the Ministry of agriculture, rural areas and farmers should improve their separate capital management mechanisms, separate credit management mechanisms, separate accounting systems, separate risk provisioning and write off mechanisms, separate capital Jin Pingheng and operational mechanisms, and separate evaluation and incentive mechanisms.

In particular, a separate capital management mechanism, the County Department will refer to the capital adequacy ratio management mode of the corporate body, and separately allocate the working capital of the division.

A pilot told reporters that at present, the branches are still undergoing system pformation. The county branch will not be able to achieve independent accounting until June, and the reform of the division system will also be completed in June.

Therefore, it is difficult to accurately predict the cost savings of the above-mentioned policies for County branches.

But he estimates that the head office will soon make detailed rules, and the branches at the grassroots level are also conducting intensive training.