Heads of the relevant departments of the China Banking and Insurance Regulatory Commission said on the 26th that the current non-performing loans in the banking industry remain high and the potential risks are greater. The disposal of non-performing loans continued to increase, and the scale of disposal reached a new high.
The person in charge said that the next step of the Banking and Insurance Regulatory Commission will further strengthen supervision and guidance, optimize the policy environment, continue to promote the disposal of non-performing loans in the banking industry, and continue to increase the disposal of non-performing loans . Combined with the actualities of various institutions, the differentiated annual disposal targets were reasonably determined. Continue to strengthen communication with the fiscal and taxation, judicial, People’s Bank, and local financial regulatory authorities, and promote the clearing of policy plugging points, innovating disposal methods, and improving disposal efficiency. Deepen the reform of financial asset management companies. Guide financial asset management companies to focus on the main business of disposing of non-performing assets and play the role of the main channel for disposal. Support Hold local asset management companies to increase the acquisition and disposal of non-performing loans .
According to reports, at the end of the first quarter of 2020, commercial banks ’non-performing loans were 2.6 trillion yuan, an increase of 198.6 billion yuan over the end of the previous year; the non-performing loan rate was 1.91%, an increase of 0.05 percentage point. In the first quarter, China ’s real economy was negatively affected by the epidemic, the stock of non-performing loans of commercial banks increased significantly, and the non-performing rate rebounded rapidly. In recent years, commercial banks have increased their disposal of non-performing loans through verification, cash collection, and market-based disposal. In the first quarter of 2020, commercial banks handled 405.5 billion yuan of non-performing loans, an increase of 72.6 billion yuan year-on-year. Among them, the write-off of non-performing loans was 192.1 billion yuan; the disposal cash was 185.5 billion yuan; the comprehensive use of debt-for-debt, asset securitization, debt-to-equity swaps, etc., totaled 27.9 billion yuan of non-performing loans.
(Originally titled “Banking and Insurance Regulatory Commission: At present, the non-performing loans of the banking industry are maintained at a high level, and the disposal of non-performing loans continues to increase”)