CBRC Analysis Of Unified Adjustment Loan Ratio Policy

With the gradual increase of the bank's bad rate, there are rumors that the bank has proposed to relax the regulation on the loan supervision to the CBRC. The CBRC concerned responded that the banking industry has the ability to consume the bad operation in its operation through the adjustment of the profit itself. The unified adjustment of loan to loan ratio may still need further consideration. On the whole, it hopes to maintain the continuity of regulatory requirements, and individual banks need to carry out detailed analysis one by one.

For the banking industry as a whole

At present, we should also observe the overall development of the whole loan to loan ratio. For individual banks, the regulatory authorities may need to conduct a detailed analysis one by one, and see what way they can help banks further increase the write offs of non-performing loans, and at the same time, they can also show that there are more provisions for provision.

In terms of integrity, we prefer to maintain a more fundamental or fundamental continuity of regulatory requirements.

However, we will dynamically adjust the situation according to the actual situation, or adjust some policies of regulation accordingly.

CBRC stakeholders said that after the emergence of non-performing loans,

The indigestion loan actually needs to pass the three pass.

The first is that if the existing capital adequacy ratio and loan allocation ratio and the provision coverage rate remain unchanged, it will first consume bank profits, slow down profit growth or reduce profits.

Second, the profits of banks have declined, and banks need to use more provisions to absorb indigestion loans.

The third level is that when the reserve ratio of banks or the ratio of loan to loan has reached the limit, it may be necessary to overspend in the end, that is, exceeding the capital adequacy ratio stipulated by the regulatory authorities. This may be a more alarming signal.

"If we pass these three levels, we can see that in fact, each of our regulatory requirements has its inherent logic.

We are in the process of building a regulatory requirement and indicators for the controllable, healthy and stable development of banking risks.

The source said.

At present, the overall banking profit and provision situation is still positive, but profitability is relatively good, although the profit growth rate has declined.

However, by the end of 9 this year, the average assets profit rate and capital profit rate of the banking sector were 1.2% and 16.1% respectively, which were all better than the international average level. Therefore, the CBRC believes that the banks are fully capable of consuming the bad loans generated in the operation through the adjustment of profits themselves.

Secondly, banking financial institutions have accelerated the verification of non-performing loans, and used some excess loan provision in the year of the year, but at present, the provision level of the banking sector is still at a relatively high level.

"So in the bank.

In the case of a positive number, and the provision coverage rate of banks is still 150% percentage points higher than that of the bank, it is considered that the policy of uniform adjustment of loan to loan ratio may need further consideration.

The source said.

However, the regulation on non-performing loans promulgated by the CBRC in 2011 refers to the implementation of counter cyclical management of non-performing loans. At the same time, it is clear that it is possible to adjust the provision according to the differential management of the banking financial institutions and the dynamic adjustment of the provision according to the different periods of the economy and the different backgrounds of the macro-control policies.