New test results for Bank Mortgage: House prices fell 50% bad rate only increased 1.2%

If prices fell by 50%, the personal mortgage rate increased by only about 1.2% Cao Jinling yesterday the Bank of Communications (601328.SH, hereinafter referred to as "the bank") disclosed the latest mortgage stress test results for the first time.　　It shows that house prices have fallen by 50% per cent and that the non-performing rate of individual mortgages has increased by only about 1.2%. The bank disclosed the above information at its 2010 interim results report. Chan Wen, vice president of the bank, said yesterday that, according to the simulations of 30%, 40% and 50% per cent of house prices, the rate of change remained relatively small, with little overall risk, even in the extreme case of a 50% decline in real estate. "Housing prices fell by 50%, and the non-performing rate on public real estate loans rose by about 1.6% per cent and about 1.2% per cent in private (personal mortgage) non-performing rates."　　"he said.　　In addition, Chan Wen also confirmed that at present, banks are in accordance with four categories of local government financing platform for statistical classification, but it is expected to take time to improve the data.　　The so-called "Four classification" is based on 70% and 30%, the commercial bank divides the local government financing platform into the complete coverage class, the basic covering class, the partial coverage class and cannot cover the class. Chan Wen said, "Can cover class" refers to the platform loan borrower can own cash flow income cover 100% and above loan principal and interest, "Basic cover class" refers to cash flow income can cover 70%~100% loan principal and interest, "partial cover class" Is the cash flow income can cover 30%~70% loan principal and interest,　　and cash flow income coverage below 30% is "Cannot cover class".　　He also pointed out that, according to the four types of coverage level, the bank is currently the local government financing platform for Statistics, the overall judgment risk controllable, the structure is relatively reasonable, even if the individual level of the lower platform loans have some risks, but the overall risk of lower impact. "The platform classification is very meticulous, the current banks have not fully completed the classification of statistics." "Chan Wen said," and the statistical investigation in addition to commercial banks, the local regulatory agencies, regional governments and platform companies to reconcile the Quartet, to confirm the cash flow situation, in order to real loans, real debt and potential risk of the situation to touch more thoroughly, rather than just stay in the broad sense of the concept. "Chan Wen said:" It is expected to take several months to complete, because the reconciliation and discussion may take a long time, the quartet also have different understanding need to unify. "Societe Generale Securities recently released a research report also revealed that the CBRC recently to the banks of the local government financing platform loans for subsequent inspection and decomposition, and set the above four classification methods."　　The report also found that the total coverage of loans accounted for about 27% of all government financing platform loans, the basic coverage and partial coverage of the class accounted for about 60%.　　In addition to the local government financing platform, the bank to bank Credit management cooperation business of the normative work has been effectively carried out. Bank of Nieusiming yesterday revealed that the bank has been in strict accordance with the CBRC regulations on the Silver Letter cooperation products screening, involving the current, the next two years into the table of the Silver letter cooperationAssets of about 17.3 billion yuan, the overall amount is not large, and has been in line with the financing business will not exceed the Bank of credit cooperation business balance 30% of the requirements. Nieusiming said that according to initial estimates, the inclusion of these assets in the table will roughly affect the bank's capital adequacy ratio of 0.1%. "These financial products do not have non-performing loans, the quality is better, only in accordance with the normal loan provisions to make provision for the provision." "he said.