Two ministries stabilize credit quality and prevent financial executives from paying high salaries

Following the promulgation of the Fixed Assets loan management method to restrain the illegal credit behavior, the Ministry of Finance and the CBRC recently issued relevant opinions, requiring the banking financial institutions to strengthen financial and risk management to ensure the quality of new loans is stable. In the first 4 months of this year, new renminbi loans to create 5.17 trillion yuan in the volume, triggering the market for follow-up credit quality concerns.　　The joint notice, entitled "Views on financial and risk management of financial institutions in the current response to financial crises" (hereinafter referred to as "opinions"), states that in the current special period of rapid development of credit business, it is also better to ensure that new loans stand the test of history.　　"Opinion" clearly requires that the banking financial institutions should pay close attention to the financial management of the borrower, and pay close attention to the foreign guarantee and other contingent liabilities of the borrower. The comments also focus on the provision of banking financial institutions, the disposal of non-performing loans and the development of overseas mergers and acquisitions, clear the banking sector should be timely and full extraction, increase the non-performing loans clearing, activating and write-off and other disposal efforts to resolve non-performing assets, carefully carry out mergers and acquisitions, to prevent foreign investment risks, deepen corporate governance reform,　　Safeguard the rights and interests of investors.　　Among them, the concern of the executive pay, "opinion" also made clear that to avoid further widening the gap between the income level of the industry and the average social income level, we should reasonably control the remuneration of senior executives, resolutely prevent graduation from national conditions, economic situation, industry development and the actual payment of the enterprise itself. On the issue of mergers and acquisitions loans, the opinion proposes to prudently implement overseas investment mergers and acquisitions to avoid unnecessary losses caused by blind expansion. "Opinion" requires that in the process of mergers and acquisitions, we should pay close attention to economic indicators such as exchange rate changes in the international market, deeply study the political, legal and social conditions of the invested country, reserve specialized mergers and management talents, take effective risk isolation measures, and evade the risk of investment and merger.