Bank capital adequacy ratio should remain above 11% per year

Xinhua Beijing, March 2, the latest issue of "Qiu Shi" magazine published China Banking Regulatory Commission chairman Liu, Liu said the annual capital adequacy ratio of large banks should be maintained in more than 11%, small and medium-sized banks should be maintained in more than 10%.　　The article extracts as follows: the implementation of moderately loose monetary policy, strict control of loan risk Reporter: Central economic work Conference proposed to continue to implement moderately loose monetary policy, in the complex domestic and foreign economic environment, how should we grasp the "moderation" of credit policy? Liu: The difficulty of loan delivery is "moderate", not enough, too bad, must be coordinated with the development of national economy. 2009 We fully implement the CPC Central Committee and the State Council macro-control policy requirements, and actively adjust the promulgation and enrichment of a number of policy measures to promote credit to the real economy in a timely and effective delivery. The first half of the loan increase to maintain the average monthly increase of 1.2 trillion yuan level, in time to avoid the large area of capital chain breakage, debts and enterprise bankruptcy, for the economic recovery to play an important role. We take effective measures to guide the banking sector from the credit over the regular delivery gradually to the normal, so that the second half of the balance of credit to maintain the average monthly increase of about 400 billion yuan.　　Overall, a better grasp of the credit policy of "moderate" requirements. This year's focus has been to progressively improve the relevance and flexibility of policies while maintaining policy stability and continuity. To urge the banking financial institutions to take the effective demand of the real economy and the adequacy of their own capital as the conditions, strict capital constraints, scientifically deal with the relationship between capital quality, credit quality and sustainable development, control the irrational growth of credit and prevent abnormal fluctuation between the quarter and the month.　　At the same time, to urge banking financial institutions to implement the credit "three measures a guideline" requirements, we should establish the concept of "real loan and payment", strengthen the whole process management of credit distribution, stick to the matching of the loan life cycle with the key life cycle of the enterprise, and match the credit entry and exit with the effective cash flow of the enterprise, and realize the reasonable release of credit.　　Reporter: Domestic and foreign experience shows that the continued large amount of loans can stimulate the rapid growth of the economy, but also easy to cause the bank to increase bad debts, how can we hold the risk of the bottom line? Mr Liu: Generally speaking, there is a big increase in credit, and non-performing loans may increase, but if the measures are appropriate, the increase can be effectively controlled. At the same time, the emergence of non-performing loans after loan issuance will have a certain time lag, as long as the appropriate response, risk can be effectively resolved. At present, the balance and proportion of non-performing loans of banking institutions in China keep low "double drop". At the end of November 2009, the balance of non-performing loans of commercial banks was 493.5 billion yuan, reduced by 66.8 billion yuan at the beginning of the year, and non-performing loans 1.6%. At the same time, the high level of reserve coverage has increased significantly, more than 150%, 34.5% higher than at the beginning of the year, and increased risk-resilience.　　This has laid a good foundation for us to deal with future risks. In the next phase, we will strengthen the key risk control and resolutely hold the risk bottom line. One is to focus on riskImplement key supervision. To urge the banking financial institutions to decompose scientifically and to implement the credit risk in the adjustment of industrial structure, the government investment and financing platform credit risk, real estate industry credit risk, case risk, personal loan funds illegal inflow into the capital market risk, the bank system liquidity risk six major risks of prevention and mitigation responsibility, and pay close attention to the implementation of the basic level in place. The second is to explicitly require the banking financial institutions to firmly hold the capital adequacy ratio, allocation coverage, leverage, large risk concentration ratio control of the four bottom line, and implement dynamic adjustment to enhance risk resistance and control capabilities. It is clear that banking financial institutions should pay close attention to the influence of national industrial policy, environmental protection policy, market change on credit enterprise and project repayment ability, strengthen sensitivity analysis, and make timely adjustment to asset risk classification and loss preparation when the effect of the supplementary preservation measures is unsatisfactory. When necessary, special preparations must be made for high-risk industries.　　Third, strictly control the large amount of credit concentration risk, strict adherence to the single household credit should not exceed 10% of the capital balance of commercial banks and group credit should not exceed the commercial bank capital balance of 15% two bottom line.　　Reporter: Because of the profit nature of capital, some places appeared the problem of credit funds illegal inflow into the stock market, the property market, the phenomenon of negotiable instrument financing arbitrage, how to guarantee the source of credit funds to the real economy is a must attach great importance to the problem. Mr Liu: Since 2008, the CBRC has taken drastic measures against the illegal arbitrage of credit funds into the stock market, the property market and the use of Bill financing. In view of the large increase of bill financing in the beginning of 2009 and the intensification of arbitrage activities, we require the banking financial institutions to conscientiously carry out self-examination and risk investigation, and arrange special inspection in time, so that the high growth situation of bill financing is quickly controlled.　　For the second half of 2009, after the stock market, the property market warmed up, the credit funds were illegally diverted into the stock market, the property market increased phenomenon, but also a number of risk prompts, and arrangements for special inspection, increased the correction and punishment. To eliminate the risk of misappropriation of credit funds from the source, in 2009, we formulated the "Interim measures for the management of fixed assets loans" and other policy measures to "real loans" to replace the "real loan", according to the project progress payment to ensure that the credit funds to the real economy, really used to meet customer production, service operations or consumer demand. It is of great significance to standardize the use of credit funds, to ensure the safety of financial credit and to protect the rights and interests of consumers. This year, we will also take strong measures to promote the implementation of the above system. It should be stated that these requirements do not raise the threshold for obtaining loans, but also help to protect the financial security of the borrowers.　　Therefore, the bank will not be able to meet the effective needs of customers adversely affected.　　Reporter: The recent introduction of new subordinated debt regulations and stricter capital adequacy constraints will undoubtedly slow the pace of commercial bank credit expansion, but this can fundamentally prevent the banking system of risk? One important lesson of the international financial crisis is that banksOnly with sufficient capital and good asset quality can we effectively withstand the impact of serious risks. We published the "notice on perfecting the capital replenishment mechanism of commercial banks", which basically requires the bank to unify the business development, risk control and capital Management, maintain the basic stability of capital adequacy ratio and higher asset quality. For commercial banks, where capital adequacy ratios are close to the bottom line, these rules will effectively curb the impulse to lend, which is absolutely necessary to prevent the bank's single risk and systemic risk in the banking sector. In the long run, a banking system with sufficient capital and good asset quality will provide stable financial guarantee for the sustained prosperity of the real economy. In order to strictly restrict capital and ensure the ability of banking industry to support economic development, we clearly request that the capital adequacy ratio of large banks should be kept above 11% and that medium and small-sized banks should remain above 10%.