[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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The above-mentioned people also said that most people still do not know the law to break the law, especially ordinary employees. But sometimes you have to do business, and you have to bite the bullet if you know it is not in compliance. For example, in the loan business, personal loans are fine as long as they meet the conditions, which is a question of how quickly they can lend. However, corporate loans are not the same. Friends of leaders and government agencies may all be the driving factors for loan issuance.
The China Banking and Insurance Regulatory Commission pointed out in its notification that cases of rural credit cooperatives and city commercial banks in some areas were frequent, and there were even cases where senior executives were “snatched”. Among them, for example, Mr. Chen, the principle director of a certain provincial association, promoted insurance for an insurance company in the rural credit system of the province, and received 60 million yuan in bribes. 13 senior executives of the rural credit system were involved in the case at the same time.
It is Chen Peng, the principal of the Anhui Provincial Associated Press, who promotes insurance in the rural credit system. More than half a year after Chen Peng was investigated, Sun Bin, former member of the party committee and deputy director of the Anhui Provincial Associated Press, Wang Xia, former member of the party committee and deputy director of Fuyang Audit Center, and senior executives of agricultural and commercial banks in Bengbu, Fengtai, Anqing, etc. Was checked.
According to the China Discipline Inspection and Supervision News, according to the findings, 7 of the 13 senior executives investigated and prosecuted for corruption exceeded 15 million yuan , And other executives investigated also amounted to millions of dollars. When the former party committee member and deputy director of the Anhui Provincial Associated Press took measures to retain Sun Bin, he learned that he had just ended more than 50 consecutive hours of “fighting” in the casino early that morning.
Some people in the banking industry believe that bank management’s cost of violations is too low, and the responsibility for the formation of bad practices after violations is too small, which creates endogenous moral hazard. root cause. The internal incentives and restraints of banks are not perfect, and some short-term radical operations have not been supervised for long-term effectiveness.
The China Discipline Inspection and Supervision News also reported that in some units, from the leaders in charge to the person in charge, were not doing their due diligence, relevance review, and risk assessment. , Is not responsible, and even hints to others with “this is introduced by the chairman”, so that the same business has violations in multiple key links. Some of the investigated subjects conspired and committed crimes together, turning the business chain into a “corrupt chain”, the interests of the “group corruption” were shared, the crime methods were concealed and complicated and carefully planned in advance, with strong anti-investigation capabilities and high IQ crime characteristics.
For a long time, theAccounts have always been naturally attractive to banks, and some grassroots bank staff are also proud of being able to “sugar daddy accounts.” Affected by factors such as operating regions, small and medium-sized banks have an even greater complex of large accounts. As a result, many small and medium-sized banking institutions have been punished because of “large banks”, and problems such as illegal transfer of credit assets and excessive credit concentration have frequently occurred.
In fact, for banks, especially small and medium-sized banks, “building large accounts” is a more effective and rapid way to expand their scale, concentrating credit resources to individual large banks. Customers can quickly realize the scale effect and obtain considerable benefits. However, in actual operation, some large households did not bring the expected high returns, and the excessive concentration of credits also made the bank “put the eggs in a basket”, and the risks could not be effectively dispersed. Once a business has a problem, the bank is naturally implicated.
A small and medium-sized banker bluntly stated to the news that even large customers may not necessarily be high-quality customers. It is just that the stall is relatively large, but in fact there are risks A lot. Moreover, some companies have long-term credit extensions, and they take loans everywhere. During this period, various methods such as loan-to-deposit and entrusted loan channel models have emerged in endlessly.
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, also said that small and medium financial institutions are the hardest hit areas for financial chaos and corruption. Rural small and medium-sized banks and other small and medium financial institutions, and city commercial banks have the characteristics of a single institution with large assets, wide cross-regional business coverage, and strong business relevance to other financial institutions. Once the “explosion” occurs, the risks will be more spilled and contagious. , It is very easy to cause regional and systemic financial risks.
The series of corruption cases of Baoshang Bank, the transfer of interests from insiders of Jinzhou Bank, the corruption case of Shanxi’s financial system, and the previous case of collusion between inside and outside Liangshan Prefecture Commercial Bank to defraud loans, etc., It also analyzes the internal risks of city commercial banks from multiple levels.
Liangshan Commercial Bank has previously attracted much attention due to collusion between internal and external management to defraud loans and other “collapsed methods of corruption.” Hao Weining, former chairman and party secretary of the bank, Chen Shengwen, former vice president and director of the loan review committee, Yang Chengbin, former director of the remuneration and nomination committee, Mao Ming, former director of the risk management department, Luo Wanyong, former risk director of the small business loan center, and others. Was checked.
The Liangshan Prefecture Commission for Discipline Inspection stated on its official website that “this typical collapse method is corrupt” and “state-owned assets have suffered heavy losses”. In October 2020, Sichuan Province completed the establishment of the Bank of Sichuan. Behind it, it completed the comparison between Panzhihua City Commercial Bank and Liangshan Prefecture Commercial Bank.The problems of financial institutions with serious credit and reputation risks are resolved.
How to get rid of the “rats” of financial corruption and protect the “jade plate” of financial assets? Li Yanru emphasized that it is necessary to explore the establishment of a sound financial anti-corruption and financial risk management coordination mechanism, including urging and supporting local party committees and governments to establish and improve the risk management mechanism of city commercial banks, establish and improve the supervision and guarantee mechanism led by discipline inspection and supervision agencies, and promote the establishment of high-quality development of city commercial banks. mechanism.