In the A-share banking sector, except CCB, China Merchants Bank, Agricultural Bank of China and ICBC, the remaining 22 listed banking stocks are collectively red!
▲ As of the close of the 6th, the gains of some banking stocks.
The bond market has also broken the long-term consolidation pattern, with treasury bonds futures closing sharply, and the main contract of 10-year treasury bonds futures hit a two-month high!
On the afternoon of the 6th, it was learned from authoritative sources that on February 28th, China Banking Regulatory Commission issued the Notice on Adjusting Provisions for Loan Losses of Commercial Banks (hereinafter referred to as the Notice), which adjusted the provision coverage ratio of commercial banks from 150% to 120%, and the regulatory requirement for loan provision ratio from 2.5%. Supervision departments at all levels shall, within the above-mentioned adjustment scope, make clear the supervision requirements of bank loan loss reserve in accordance with the principles of "homogeneity and similarity" and "one line and one policy". It is reported that the local banking regulatory bureau has been notified.
According to the new standards, some banks' profits in accounting treatment will increase and their balance sheets will be more solid. The increase of bank liquidity will in turn stimulate the bond market, which is conducive to the decline of the default rate of credit bonds. Banks are well-off and can better support the development of the real economy.
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Help to improve the profits of some banks.
The provision coverage ratio and loan provision ratio mentioned in the above notice are important regulatory indicators reflecting the quality of bank assets.
Provision coverage ratio:
Also known as "provision adequacy ratio", it is the ratio of utilization ratio of bad debt provision to actual possible provision in bank loans, and the ratio of loan loss provision to non-performing loan balance. The coverage ratio of non-performing loan provision is an important indicator to measure the adequacy of loan loss provision of commercial banks.
Loan provision ratio:
The proportion of provision for bad debts; Refers to the ratio of loan loss provision to loan balance, which is one of the important regulatory indicators reflecting the level of provision provision for commercial banks.
Obviously, the Notice greatly lowered the two regulatory "red lines" of provision coverage ratio and loan provision ratio.
Nanxun of Lianxun Securities said that the loan loss reserve belongs to the cost item in the bank statement. If banks can meet the requirements of reducing the provision coverage ratio and loan provision ratio, loan loss provision originally belonging to cost items can be changed from cost items to profit items, which is conducive to improving the performance of some banks.
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Nan pointed out that while rewarding "honest" and compliant banking institutions, the CBRC urged banks to truly classify non-performing loans, speed up the disposal of off-balance-sheet non-performing loans, improve the internal risk control level of banks and reduce the systemic risks faced by banks; On the other hand, the increase of profits and capital of banks that meet the requirements can alleviate the pressure of insufficient capital of banks, reduce the worries of banks serving the real economy, and create space for future off-balance sheet assets to return to the on-balance sheet.
As of 2065438+September 30, 2007, the non-performing loan provision coverage ratio of 26 listed banks in the A-share banking sector is as follows (not disclosed by Chengdu Bank and Wujiang Bank):
It can be seen that the provision coverage ratio of A-share listed banks is generally higher than 150%, while that of Nanjing Bank and Bank of Ningbo even exceeds 400%.
According to the statistics of China Banking Regulatory Commission, by the end of 20 17, the provision coverage ratio of commercial banks in China was 18 1.42%, and the loan provision ratio was 3. 16%, which were 5.02 percentage points and 3.08 percentage points higher than the end of 20 16, respectively.
In addition, the provision coverage ratio of commercial banks is constantly changing with the operating conditions. The reporter of National Business Daily (micro-signal: nbdnews) combed the statistics of China Banking Regulatory Commission and found that at the end of the first quarter of 20 16, the provision coverage ratio of national commercial banks dropped to 175.03%, which was 36.95 percentage points lower than that of 201.98% in the same period. However, from the second quarter of 20 16, the provision coverage ratio began to rise, and returned to more than 180% by the end of the third quarter of 20 17.
Banks have more funds to support the real economy.
Kyushu Securities, Chen and Liu Wei said that reducing the provision coverage ratio will help ease the bank's capital occupation, help the bank's off-balance-sheet assets return to the balance sheet smoothly, reduce the friction cost of "off-balance-sheet return" and help the financial market transition smoothly. Deng Haiqing and others believe that the reduction of the provision ratio is good for the bond market, and there are two transmission logics:
First, with the increase of bank capital, banks can invest in credit bonds and expand the scale of outsourcing, which is beneficial to the bond market.
Second, the increase of bank capital will help banks "transfer from off-balance sheet to on-balance sheet", and the "transfer from off-balance sheet to on-balance sheet" will proceed smoothly, and the impact on financial markets will also be reduced.
"The consistent thinking of China's supervision is that outdated regulatory requirements will be cancelled when they are not core contradictions. The provision coverage ratio of 1.50% and the loan-to-deposit ratio of 2.5% (equivalent to the loan provision ratio) will be adjusted sooner or later, but they will not be adjusted when the bad risk is high. Adding fuel to the fire' and' pressure has come to relax the bottom line on a large scale' are not the policy options of China banking regulators. " Li, a researcher at Hubei Industrial Upgrading and Regional Financial Collaborative Innovation Center of Zhongnan University of Economics and Law, said that at present, the provision coverage ratio of most banks is above 1.50%, and the provision coverage ratio will be further improved after switching the new accounting standards. Provision coverage ratio is not the core contradiction faced by banks at present. Choosing this time to adjust can only prove that the economy is fine and the bad ones are fine.
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The report of the 19th National Congress of the Communist Party of China listed "preventing and resolving major risks" as the first of the "three major battles". The Central Economic Work Conference also emphasized that the key to preventing and resolving major risks is to prevent and control financial risks. To this end, many viewpoints believe that resolving the bad risks of banks is an important part of preventing and resolving major risks, and reducing the provision ratio will help banks to use more funds for the disposal of non-performing assets.
It's not just banks that are willing to draw a red line for reserves under the CBRC. According to the news of China Securities Network on March 6, Wang Zhaoxing, vice chairman of the China Banking Regulatory Commission, said that due to the good operating conditions of banks in the past few years, a large amount of loan loss provision was made. At present, the provision level of the whole industry has reached more than 1.80%, far exceeding the international level. Therefore, it is conditional to appropriately reduce the provision requirements. This is also more conducive to speeding up the current disposal of non-performing loans, while enabling banks to have more funds to support the development of the real economy.