China Banking Regulatory Commission focuses on preventing and controlling ten types of risks such as real estate
Daily Economic News reporter Zhu Dandan Daily Economic News editor Jia Yunke
As an important focus of the national policy in 2017, risk prevention has recently ushered in a wave of regulatory “strong voice”. On april 9, the chinese government published an article on the chinese government website. Premier li keqiang of the state council pointed out at the fifth clean government work conference of the state council held recently that they should be highly vigilant and strictly guarded against financial risks, firmly hold the bottom line of preventing systemic financial risks. For illegal acts such as individual supervisors and company executives guarding and stealing, colluding with financial predators inside and outside, they must be severely punished according to law and make an example.
The next day (April 10), the website of the China Insurance Regulatory Commission published an article to maintain a high regulatory pressure, resolutely control market chaos, and resolutely investigate and deal with violations of laws and regulations. The China Banking Regulatory Commission also released a message on the same day that the China Banking Regulatory Commission recently issued the guidance on the prevention and control of banking risks (hereinafter referred to as the guidance), which clearly focused on the prevention and control of liquidity risks, ten types of risks such as real estate risks and internet financial risks.
For the purpose of issuing the Guiding Opinions, the head of the relevant departments of CBRC said that it was to “urge banking financial institutions to effectively handle a number of key risk points and eliminate a number of hidden risks, while strictly observing the bottom line of systemic risks, we will further improve the level of risk management.”
It is worth noting that the guiding opinions put forward that “we should do a good job in cleaning up and rectifying cash loan business activities.” This is also the first time that CBRC has issued a document named “cash loan”. In response, Fang song, president of Guangzhou Internet Finance Association and president of Guangzhou e-loan, told the reporter of Daily Economic News that “cash loans” are developing rapidly at present, and some platforms are making profits, high interest rates and even usury (soliciting customers) are adopted to cover bad debt losses; At the same time, a large number of overdue payments can easily lead to violent collection.
Risks in real estate and other fields “on the list”
Under the hot real estate market, the personal mortgage business of listed banks is growing rapidly. The reporter of “Daily Economic News” noticed that in 2016, the balance of personal housing loans of CCB was 3.59 trillion yuan, an increase of 811.752 billion yuan over the previous year; The balance of personal housing loans of ICBC was 3.24 trillion yuan, an increase of 724.6 billion yuan; the balance of personal housing loan of ABC is 2.56 trillion yuan, with 632.952 billion yuan added; The balance of personal housing loan of BOC is 2.64 trillion yuan, with 590.2 billion yuan added.
This time, the Guiding Opinions pointed out that banking financial institutions should establish a full-caliber real estate risk monitoring mechanism and carry out real estate stress tests on a regular basis. Strengthen the compliance management of real estate business, and prohibit the illegal inflow of funds into the real estate field.
In this regard, many insiders believe that the growth rate of bank mortgage business is expected to slow down this year under the influence of upgrading real estate control measures, tightening mortgage policies, and raising mortgage interest rates.
In addition, the Guiding Opinions clearly pointed out that it is necessary to rectify the inter-bank business and strengthen the control of cross-financial business. To control business increment and digest stock risks, banking financial institutions should comprehensively investigate the existing inter-bank business and formulate rectification plans for businesses with multi-tier architecture and high complexity. For high-risk inter-bank investment business, it is necessary to formulate coping strategies and exit schedules. Data show that at the end of 2016, the balance of banking industry due from banks was 11.4 trillion yuan, an increase of 2.5 trillion yuan from the beginning of the year.
“Due to the low risk capital provision and provision of the interbank business, the traditional credit supervision indicators can be avoided. At the same time, the offline interbank market has flexible operation, hidden channels, and more difficult risk penetration supervision, therefore, the credit-like business model of short-term growth, layer-by-layer transmission and final connection with restricted industries has become the mainstream through inter-bank funds.” A person from the financial market department of agricultural bank of china pointed out that the inter-bank business was gradually alienated into a profit tool that broke away from the essence of liquidity management, escaped the supervision inside and outside the table, and expanded the scale of assets and liabilities.
“Cash Loan” risk attracts attention
It is worth noting that since this year, due to problems such as high interest rates, brutal collection and abuse of personal information, “cash loans” have been frequently exposed by the media and attracted attention from all parties. The reporter of Daily Economic News noticed that the guidance named “cash loan” in the statement of “steadily promoting the governance of Internet financial risks and promoting the steady development of compliance”, it is required to “do a good job in cleaning up and rectifying cash loan business activities.”
Fang Song said that due to the very low application threshold and unlimited use of loans, the risk of “cash loans” is bound to be higher than that of consumer loans. Many lending institutions are overdue by more than 30%, it is easy to cause violent collection incidents.
Zhang Yexia, a senior researcher of Yingcan Consulting, also analyzed and pointed out to the reporter of Daily Economic News that there are four main problems in the “cash loan” business: first, some platforms set too high interest rates, customers who lack financial knowledge are easy to fall into the vortex of debt; Second, the customer base is mostly secondary customers, and the phenomenon of multi-head borrowing is relatively serious; Third, the degree of product homogenization is relatively high, which is prone to vicious competition; fourth, there is a problem of violent collection. In addition, the moral hazard of borrowers and platforms and the system stability risk of platforms are also risk points of “cash loan” business.
Fang Song pointed out to the reporter that the original intention of “cash loan” is to help some groups who are difficult to enjoy financial services to solve the temporary urgent demand for funds, which should not be turned into early consumption and random consumption. The development and supervision of “cash loan” should be well grasped. On the one hand, it is necessary to develop inclusive finance so that more people can enjoy simple and convenient financial services, but it is also impossible to have excessive liabilities because it is easy to obtain loans.
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Daily Economic News reporter Zhu Dandan Daily Economic News editor Jia Yun can be an important focus of the national policy in 2017, and risk prevention has recently ushered in a wave of regulatory “strong voice”. On April 9, the Chinese government published an article on the Chinese government website. Premier Li Keqiang of the State Council recently
