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Original title: Giving importance to the risks of some financial products, what signs does the Financial Commission respect of contracts and clarify responsibilities?
On May 4, the State Council’s Committee for Financial Stability and Development (hereinafter the “Finance Committee”) held its 28th meeting to hear reports on progress in supporting the economic recovery, accelerate reform and development of small and medium-sized banks, and combat fraud in the capital market and support the economy. Recovering, accelerating the reform and development of small and medium-sized banks, cracking down on fraudulent behavior in the capital market and preventing risks from financial products are the main content of this meeting of the Finance Committee.
It is worth noting that after the statement of the Banking and Insurance Regulatory Commission on April 30, the Financial Commission also focused on some risk problems of financial products: we must give great importance to some risk problems of financial products caused By current fluctuations in international commodity market prices and increasing risk awareness. Strengthen risk management and control, respect contracts, clarify responsibilities and protect investors’ legitimate interests.
Create effective domestic demand
Since the outbreak of the epidemic, financial support for the real economy has continued to increase, countering many uncertainties caused by the impact of the epidemic and the economic recession. In support of the economic recovery, how to expand domestic demand has become the focus of the next macroeconomic policy effort.
With the deepening of the resumption of production and production, there have been positive improvements in domestic production, investment, consumption and other fields. In March and April, the manufacturing PMI index was above the bleak line for two months in a row. However, it is worth noting that the recovery in current demand is slower than production, external demand is affected by the global epidemic and there is greater uncertainty, and internal demand has not yet been met.
This meeting requires that all units of the Finance Committee improve the macro plan, create effective demand, optimize the supply structure, maintain reasonable and sufficient liquidity, improve the quality of the policy and pay close attention to the implementation of the policy. .
Li Jianjun, chief investigator of China Business Intelligence, said effective demand is now the focus. On the one hand, in the first quarter, consumer investment and exports were double-digit declines. The largest new orders index on the manufacturing PMI index in April also fell since March, indicating that economic problems are mainly concentrated on the demand side. In the absence of effective control of the global epidemic, external demand cannot be restored in a short period of time. Therefore, the driving force for China’s economic development should be primarily in domestic demand. “This is the most important element of the Financial Commission to create effective demand.”
ChinaMinsheng BankChief researcher Wen Bin believes this means that macro policies will continue to strengthen countercyclical regulation, activate economic growth points and unlock economic potential. Monetary policy will continue to maintain reasonable and sufficient liquidity, will reduce financing costs, and fiscal policy will be more proactive, further reducing taxes and fees and increasing public spending. In addition, a series of policies will be introduced and implemented to stimulate consumption and stimulate investment to vigorously promote the accelerated recovery of domestic demand.
Deepen the reform of small and medium banks.
In the process of supporting SMEs, small and medium banks are the main main force. In recent years, supervisory authorities have paid special attention to small and medium-sized banks, and have repeatedly expressed and adopted measures on central issues such as corporate governance and capital replenishment to avoid the possibility of systemic risk outbreaks. , and help small and medium-sized banks to strengthen their ability to provide credit.
As of now, there are more than 4,000 small and medium-sized banking legal entities in China, with total assets of about 77 trillion yuan, which is the main force for banking financial institutions to provide services to the “three rural enterprises” and small, medium and micro businesses. However, problems such as the rapid increase in the default rate of small and medium-sized banks and insufficient capital replenishment are also presented to us.
The Finance Committee meeting noted that small and medium-sized banks are of great importance in serving the real economy and small and medium-sized enterprises. Relevant departments have formulated work plans to deepen reforms and replenish capital for small and medium banks.
Wen Bin believes that, on the one hand, the large number of small and medium-sized banks are not only an important part of China’s banking system, but are rooted at the grassroots level and are inherently inclusive, playing an indispensable role in serving grassroots residents, small and medium businesses, and individual industrial and commercial households. Small and medium-sized banks, on the other hand, have a relatively weak customer base and have no advantages in terms of sources of financing and capital replenishment. The epidemic has led to increased pressure on profitability, accelerated capital consumption, and poor asset quality. Special support will be provided to help small and medium-sized banks prevent risks and improve their ability to serve the real economy.
The meeting also proposed that reform and development should be combined organically, in order to serve grassroots and small and medium-sized enterprises, while enriching capital, solving the outstanding problems of small and medium-sized banks in terms of commercial positioning , corporate governance, credit costs, etc., and promote the governance structure and A virtuous circle of business development.
Wen Bin believes the reason is that some small and medium-sized banks still have problems such as corporate governance defects, ambiguous business positioning, and weak risk control. To truly “strengthen fitness,” we must deepen reforms, strengthen corporate governance, standardize shareholder behavior, and effectively resolve risks. Clear business positioning, focus on core responsibilities, return to business roots, and focus on serving grassroots and small, medium, and microenterprises. In the next stage, to maintain the general situation of stable economic and financial development, policies will be implemented to support the development of small and medium-sized banks. Standardizing the behavior of small and medium-sized banks and preventing and mitigating risks will also be in a more prominent position.
Li Jianjun believes that small and medium-sized companies often have insufficient collateral and high operational risks, so while providing the necessary credit support, they should also strengthen risk management and control. This involves not only the risk management of the credit project itself, but also the perfect and transparent corporate governance structure of small and medium-sized banks, scientific decision-making and the prevention of excessive concentration of credit risk.
For issues related to the reform and development of small and medium-sized banks, supervisory authorities have been deployed at important meetings many times. On April 30, the Baoshang Bank acquisition team announced the latest progress of the Baoshang Bank reform and reorganization: it began the establishment of the Commercial Bank of Mongolia to acquire the relevant businesses, assets and liabilities of the contracting bank. Mengshang Bank completed the industrial and commercial registration on April 30 and was established in accordance with the law.
Previously, Cao Yu, vice chairman of the China Insurance Regulatory Commission, said that the Chinese Insurance Regulatory Commission is doing everything possible to deepen reform of small and medium-sized banks and resolve risks, and has drawn up work plans relevant with multiple departments. This year, the reform and reorganization of small and medium banks will be relatively strong, especially the market-oriented reorganization will have more efforts and measures.
Attaches great importance to the risks of financial products.
Recently, due to the accelerated spread of the global epidemic, uncertain economic prospects and geopolitical conflicts, market panic has increased, financial market volatility has increased, and international crude oil futures prices have fallen to negative values, resulting in large losses on related investments.Bank of chinaThe “crude oil treasure” incident has raised great concern.
The focus of the market debate is whether banks’ compliance with such linked futures market products, investor suitability and risk control compliance, and who assumes investment losses.
The meeting particularly emphasized that it is necessary to attach great importance to the risks of some financial products caused by current price fluctuations in the international commodity market, increase risk awareness and strengthen risk management and control. It is necessary to control the indirect effects, understand moderation, improve professionalism, respect contracts, clarify responsibilities and protect the legitimate interests of investors.
In response to the Bank of China crude oil incident, the head of the relevant department of the China Insurance Regulatory Commission replied on April 30 that the China Insurance Regulatory Commission was very concerned about this risk event and asked the Bank China to resolve the issue in accordance with the law and regulations, negotiate with customers on an equal footing, and respond to concerns in a timely manner. Effectively safeguard the rights and legitimate interests of investors. At the same time, the Bank of China is required to resolve and clarify issues as soon as possible, strictly manage products, strengthen risk management and control, and improve emergency management capabilities in the face of abnormal market fluctuations. Currently, the relevant situation is under further investigation.
“Due to the current epidemic situation, the international financial market situation is complex and changing, and reminds financial consumers to further enhance awareness of investment risk. The China Banking Regulatory Commission will continue to increase supervision and urge banks to further strengthen risk management and control of account products. ” Investigate and deal seriously in accordance with law and regulations, and effectively protect the legitimate rights and interests of financial consumers, “said the person in charge.
Previously, the Bank of China announced that it was thoroughly reviewing product design, business strategy, and risk management and control, and an in-depth search for existing problems and hidden dangers. In line with the principles of the rule of law, commercialization, the pursuit of truth from facts, objectivity and fairness, we are actively investigating and seeking to respond to clients’ reasonable demands as soon as possible.
“This incident should not be viewed as just an individual banking incident. Weak links in financial investment management may be common among many financial institutions. In the next stage, financial institutions should continue to strengthen product development, especially for Innovative and complex financial institutions For products, we must enhance professionalism, strengthen risk awareness, and strengthen risk management and control, especially to improve emergency response capabilities under abnormal market fluctuations. At the same time, we must standardize promoting and marketing the product, understanding the suitability and strengthening investor education and rights protection, Wen Bin said.
Editor-in-chief: Chen Zhijie
