[Editor’s Note]

As the absolute main force in the financial industry, the steady development of the banking and insurance industry has a bearing on the overall situation. According to a recent report by the China Banking and Insurance Regulatory Commission, in the first half of this year, cases of bancassurance institutions continued to show a trend of high incidence, involving a total of 49.580 billion yuan, and a total of 585 bancassurance institution practitioners were taken compulsory measures. The main risks and problems presented by the case include the intertwining of financial corruption and business violations, the prominent endogenous problems of small and medium-sized banking institutions, the hidden risks of financial technology application, the outstanding moral hazard in the field of non-performing asset disposal, the renovation of personal housing loan fraud, and major insurance cases Six categories of serious harm. Where does the financial risk problem presented by the bancassurance industry originate, and how to prevent and resolve related risk problems? The news explores the above six types of risk questions one by one, trying to find some answers from them.

The risk of small and medium banks has always been a concern.

The China Banking and Insurance Regulatory Commission recently issued a report on criminal cases involving bancassurance institutions in the first half of 2021. Compared with other banking institutions, the overall level of internal control of small and medium-sized banking institutions Relatively weak, there are many internal factors that induce cases, and the number of cases is still high.

Li Yanru, deputy head of the Disciplinary Inspection and Supervision Group of the State Supervision Commission of the Central Commission for Discipline Inspection and the China Banking and Insurance Regulatory Commission, pointed out in a video interview in September this year that some small and medium-sized financial institutions have higher risks. She pointed out that some small and medium-sized financial institutions have heavy historical burdens, weak operating foundations, many stock problems, and difficulties in transformation and development. Reforming insurance involves many institutions and is difficult.

Throughout the major risk events that have occurred in the banking system in recent years, most of the agencies involved in the incidents are small and medium-sized banks. For example, the Baoshang Bank incident, the investigation of the three-term chairman and the former president of Yantai Bank, the corruption case of the Associated Press of Yunnan Province, and the loan fraud case involving internal and external collusion of Liangshan Prefecture Commercial Bank all reflect the risk of small and medium-sized banks.

Where is the main problem? In the notice, the China Banking and Insurance Regulatory Commission stated that the internal problems of small and medium-sized banking institutions are prominent, and there are systematic cases caused by contradictions in the system and mechanism; there are also deviations in business positioning, inadequate credit risk management, and blindly “base on large accounts” and loans. Business investment, capital business channelization, and frequent cases in the loan and inter-industry sectors. At the same time, some institutions lack case management, and the Chen case has not been discovered for a long time.

“Internal control issues, moral hazards.” The front desk business person of Youcheng Commercial Bank talked about endogenousnessWhen the question was asked, he told the news, “The main reason is that the employees’ behavior is in compliance with the regulations and not breaking the law. There is a system, but the crime is still a crime. For example, doing business for people you have a relationship with will take advantage of the system.”
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