On June 21, the audit report of the State Council on the implementation of the central budget and other financial revenues and expenditures in 2021 (hereinafter referred to as the “work report”) delivered by Hou Kai, auditor general of the audit office, at the 35th meeting of the Standing Committee of the 13th National People’s Congress was published on the website of the National Audit Office< Br>
the work report shows that in terms of the audit of state-owned assets of financial enterprises, the National Audit Office audited 23 local small and medium-sized banks, 20 local asset management companies and Cinda Asset management companies. By the end of 2020, 44 financial enterprises had total book assets of 12.46 trillion yuan and liabilities of 11.31 trillion yuan. Except for one loss, 43 had a return on net assets of 0.03% to 14.84%. We tracked the flow of credit funds of five large commercial banks< Br>
according to the work report, the main problems found by the audit office include: small and medium-sized financial institutions have operational risks < Strong> weak internal control and inadequate external supervision < Strong> there is distortion in the implementation of the inclusive financial policy < Br>
specifically, there are operational risks in small and medium-sized financial institutions. First, the asset quality is not true, 23 small and medium-sized banks have less disclosure of non-performing assets of 170.962 billion yuan < Strong > 20 local asset management companies deviated from their main business and raised funds in violation of regulations, of which 15.107 billion yuan was non-performing or overdue . Second, there is a certain liquidity risk< Strong>9 of the 23 small and medium-sized banks have insufficient capital adequacy ratio, 13 fail to conduct comprehensive real-time liquidity monitoring in accordance with regulatory requirements, 8 have false or artificially adjusted liquidity indicators, and 6 have adopted short-sighted behaviors such as high interest rates to solicit deposits after liquidity risks. < Br>
in terms of weak internal control and inadequate external supervision, first, there are major defects in the internal governance mechanism. The 23 small and medium-sized banks and 20 local asset management companies audited generally have problems of imperfect governance structure, imperfect governance system and ineffective supervision and balance mechanism. The main problems are that the responsibilities of the board of directors and managers are vague, and the responsibilities of the board of supervisors are suspended or deviated; Internal control and compliance exist in name only, and core business systems and internal control processes such as credit management and loan “three checks” are missing or laxly implemented. Second, external supervision needs to be strengthened< Strong > since 2018, financial regulators have conducted 176 on-site inspections on 23 banks, but some inspections have relied too much on the “water injection” materials submitted by financial institutions, and some risks have not been found and corrected in advance. . Among the 20 local asset management companies, 9 have never been subject to on-site inspection by the financial supervision department of the local government, and the remaining 11 have less than once in two years on average< Br>
there is deformation and distortion in the implementation of the inclusive financial policy. The main problems include: first, the inclusive credit of small and medium-sized banks is not accurate, the main business of small and medium-sized banks is supporting small and agriculture. However, by March 2021, 23 small and medium-sized banks accounted for 10.33% of the loan balance of inclusive small and micro enterprises, which is only one fifth of the loan proportion of large customers above RMB 100 million, Among them, the balance of 6 agricultural related loans has also declined for three consecutive years . Second, the investment of large banks was not accurate, and 4 large banks falsely increased the inclusive small and micro enterprise loans by 8.718 billion yuan through artificially adjusting the type of loan enterprises; RMB 2.496 billion actually flows to real estate or large groups ; 364 out of 517 small and Micro customers have no actual operation. Third, the problem of using inclusive credit management loopholes to obtain funds is prominent. 1.366 billion yuan of 2 large banks was obtained by some individuals or gangs through registration of shell companies or fictitious trade backgrounds for the purchase of commercial housing, debt repayment, etc. < Br >
the National Audit Office recommended that financial institutions should be guided to focus on their main responsibilities and businesses and increase support for the real economy. In the field of Finance and finance, we should focus on preventing and resolving the risks of local government debt, disposal of non-performing assets, approval of credit funds and other risks, and use more market-oriented and legal means to resolve hidden risks. We will improve the financial risk disposal mechanism in the charge of local party and government leaders, strengthen the party’s leadership over small and medium-sized banks, and reverse the responsibility of the main principals of regions and units with serious violations of borrowing, and pursue responsibility for life.