Regulators Urgently Brakes City Business Expansion &Nbsp; IPO Cooling Iron Nails

"Many city businesses are queuing up now. list But with supervise We must speed up the pace. " Liu Feng said.

This year " Two sessions(NPC and CPPCC) During the period, Vice Premier Wang Qishan of the State Council expressed an official attitude toward the expansion of the city commercial banks. "Always wanted to expand across the region, and when I took a nap, you wanted to run outside." Shortly thereafter, the policy implications behind these remarks have gradually become apparent. Meanwhile, stakeholders in city commercial banks have begun to think about this proposition.

　　 Cities and towns in Jiangsu and Zhejiang are expanding most crazily, and regulators have begun to "fire out" gradually.

According to the data released by the China Banking Regulatory Commission, as of the end of 2010, the total assets of urban commercial banks amounted to 7 trillion and 900 billion yuan, an increase of 38.2%, far exceeding the average growth rate of the industry. However, some city commercial banks have increased significantly in terms of total assets and network outlets. The speed of development is a little worried behind them.

According to relevant statistics, a large number of city commercial banks are no longer just their own outlets in the original location. Some of them may have branches in some major cities such as Beijing, Shanghai, Guangzhou and Shenzhen, and many of them are not so large. During the 3 years from 2007 to 2010, many city commercial banks reached an unprecedented rate of expansion.

"Take Guangdong as an example, banks like Guangzhou have already set up outlets in Shenzhen, while Dongguan bank has made more rapid progress. At present, it has opened branches in Guangzhou, Shenzhen, Huizhou, Changsha and other places. In fact, this is just a microcosm of the expansion of so many cities and businesses in the whole country. " Guangdong banking regulatory bureau said on condition of anonymity.

He also believes that "the expansion speed of the city commercial banks in Guangdong is not yet serious, and that Jiangsu, Zhejiang, Shanghai and other places are even more crazy. Some of their banks are almost like turning themselves into a national shareholding bank, especially in recent years. At that time, the CBRC also convened the relevant CBRC sub bureaus to discuss these issues. Premier Wang's position is a clear guide for the future.

According to the above tips, the reporters searched the expansion of some city commercial banks in Jiangsu and Zhejiang provinces. Like the Listed Bank of Ningbo (13.65, -0.07, -0.51%), apart from Ningbo, it has branches in 7 regions of the country, and Nanjing Bank (11.42, -0.12, -1.04%) has branches in 8 regions outside Nanjing. Banks such as Jiangsu bank, Shanghai bank, Hangzhou bank and Wenzhou bank also have branches in 5 to 12 cities nationwide.

"At present, the branch offices of the city commercial banks have been suspended for a long time. At the appropriate time, the CBRC should issue a more detailed rating classification of whether the city commercial banks have trans regional operations, mainly from the assets scale, non-performing loan ratio, provision coverage ratio, loan to deposit ratio and profitability status of the city commercial banks as an entry threshold assessment." The above CBRC sources said.

　 The danger of rapid expansion: gradually losing its position and losing its characteristics, lacking large-scale operation experience.

"Indeed, the supervision of city commercial banks has been relatively relaxed in recent years, which is also an important factor that causes the expansion of the city commercial banks so fast." Mr. Li, director of a city business in Jiangsu and Zhejiang, said.

Liu Feng, chairman of the international finance and financing Standards Committee, said: "the development of many city commercial banks is inseparable from the support of the local government. Especially in some developed cities, there are many excellent projects that will be biased towards the local city commercial banks. This will enhance the competitiveness of local firms while weakening some of the local firms. As a result of this development, the strength of the city commercial banks has been greatly improved, resulting in their desire to expand outwards.

According to Liu Feng's statement, the reporters expressed their approval when they interviewed some responsible persons of some city commercial banks. In addition, "the city commercial banks are losing their own characteristics, their positioning is not clear, and they are getting less protection. Homogenization is becoming more and more serious. They are gradually being rubbed off, and they are developing towards the national share holding bank," he added. From this perspective, it is very necessary to control the expansion of the city commercial banks.

"In fact, the most rapid development of city commercial outlets is the lack of large-scale operation experience. For example, corporate governance, talent reserves, business experience and IT system are lagging behind the pace of their development. The hardware facilities such as institutional outlets are easy to do well, as long as they have enough money, but if the software fails to catch up with them, then there will be big problems sooner or later. Regulators are also gradually recognizing the risks, so it is very timely to halt and relocate their expansion temporarily. Liu Feng said.

He also believes that "as big banks have been investing in IT systems for so many years, they haven't done a good job yet. What is possible for city commercial banks to accomplish overnight? A series of negative effects generated by catching up with the duck will easily affect the stability of the financial system. Recently, the problem of counterfeiting of bills in some city commercial banks has highlighted the importance of risk control.

Speaking of how to control the expansion of the city commercial banks, Mr. Li expressed his own ideas. "We hope to control the expansion without a single cut, and we can make a more specific definition of the situation of different city commercial banks. For example, we will also set up branches in areas close to space, but if we are too far away, we may not be able to make effective control, and we will not accept the development because of different regional economic policies or environment. So we hope that regulators can give more detailed guidelines, but do not stop completely.

　　 Is the city commercial IPO suspended? There is no doubt that speed is slowing down.

"Now there are many cities listed in the queue, but the listing is closely related to the development of the entire city commercial banks. Although many city commercial banks are in good development, they are not too large. If the business lines are expanded, it is hard to say what will happen. Now that regulators have control over the expansion of city firms, the listing is bound to slow down. " Liu Feng said.

Since the listing of banks in Ningbo, Nanjing and Beijing (12.24, -0.38, -3.01%) in 2007, the listing of the city commercial banks has suddenly stopped. Until now, it seems that there is no final conclusion when to open the door of IPO.

Shanghai securities analyst with relevant research on the city commercial bank believes that "many city commercial banks are adjusting their shareholders to better meet the requirements of laws and regulations. In fact, there are a large number of shareholders in the city commercial banks who are more than 200 legal persons or natural shareholders. Such a situation is certainly not in line with supervision.

"The slow pace of expansion will definitely affect some performance of the city commercial banks, and many city commercial banks have gradually lost their competitive edge in the local development and are facing homogenization competition. If they do not work hard to improve their internal strength, they will only think about how to expand their institutions, and the city business will be eliminated by the market someday." Shanghai securities people believe.

Analysts at CITIC Securities (14.90,0.10,0.68%) said, "in fact, the growth of many city commercial banks is very good. If we can focus more on the development and are good at the business in the region, it will be more favorable for the development of the whole bank. It is hard to advance the listing in the short term, but it depends on the further attitude of regulators.

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