CBRC chairman Liu asked to strengthen risk management

The bank will have to raise the coverage rate of more than 150% in the year to strictly implement the "two-suite" standard to effectively guard against "fake mortgage" "false down Payment", China Banking Regulatory Commission chairman Liu said 17th, banking financial institutions should strengthen risk management, strictly adhere to the bottom line of the provision of coverage, the year must be increased by more than 150% of the provision coverage. Strict implementation of the "two-suite" standard, strictly in accordance with the provisions of housing mortgage loans to the first payment ratio and the rate of loans, for investment housing to adhere to the first Kang Gaocheng number, the interest rate strict risk pricing and credit strict review of the principle of strict implementation and the borrower 100% "interview" "Face sign" system to effectively prevent "fake mortgage" "false down Payment"　　Phenomenon. Mr Liu made the statement at the CBRC's third economic and financial situation briefing in 2009.　　He pointed out that the current banking financial institutions should specifically prevent the project capital is not real or insufficient risk, Bill financing risk, loan concentration risk and real estate market risk and other new risk points. Industry insiders say this is the second time this year that regulators have called for a rise in the level of banking provision. In the face of a surge in lending in the first half, regulators have been wary of a possible decline in asset quality in the future, calling for higher provisioning levels to strengthen protection against credit risks.　　In addition, the increase in the provision level can smooth the future growth curve of bank performance, but will also lead to a decline in the bank's current profits.　　At the first meeting of the Banking Regulatory Commission on January 16, Mr Liu had requested banks to have at least 130% per cent allocation coverage and higher risk banks should increase their allocation coverage to more than 150% per cent.　　According to the latest data released by the CBRC, as at the end of June, commercial banks had set the coverage rate at 134.3%, up 17.9% from the beginning of the year. At the third briefing on economic and financial situations, Liu said that the future banking industry will continue to adhere to the "differential treatment and maintain pressure" to strengthen the state key projects, small and medium-sized enterprises, "Three rural", guaranteed housing, major scientific and technological special, energy saving and emission reduction credit support, strict control of the "two to one capital", overcapacity industry loans.　　For projects that do not conform to national industrial policy regulations, market access standards, and do not meet national EIA and emission requirements, strict restrictions on any form of additional credit will be imposed, actively promoting economic restructuring. In the first half of this year, the rapid expansion of China's banking loan scale has played an important role in promoting the stability of the economy, but the risk of the accumulation of high speed loans is also increasing, and the tendency of the banking financial institutions to be imprudent in operating activities and impulsive lending and extensive.　　Liu asked that banking institutions should guard against financial risks and optimize the credit structure. He pointed out that the banking industry must adhere to the bottom line of capital adequacy ratio, maintain the stability of capital adequacy ratio at current level, ensure the quality of capital composition, further improve risk management, strengthen the restriction and guidance function of risk management on banking business, create a compliance credit culture, strengthen customer management of credit service, strengthen customer's access screening, Early warning and credit combination analysis after loan.