Loan knowledge

Credit asset quality stable to prevent bad loans

  in General, the quality of credit assets of commercial banks and macroeconomic significant procyclicality. Experience from countries where macroeconomic downturn will cause increase in bad loans. In the context of a global economic slowdown, China's economy will not be immune. China's reliance on credit in the real economy, operational difficulties facing the real economy will be reflected on the quality of credit assets of commercial banks. Enterprises between arrears of debt, was probably blew eye potential storm of commercial bank credit assets quality risks. Therefore, our country's commercial bank credit assets quality risks pressure rise is not an anomaly, but the inevitable result of the macro-economy.
to be aware of is that in practice, there are some subjective classification of credit assets of commercial banks, in particular, about the class distinctions with doubtful loans was also more difficult to grasp, relating mainly to qualitative analysis. Especially bad loan assessment indicators and the grass-roots are linked to the business performance and the quality of that often sink to the grass-roots level, this does not eliminate the moral hazard of banks. In addition, as long as the borrower is still barely functioning, the banks will find a way to avoid overdue loans. These may hide the true quality of credit assets.
should say, the quality of credit assets of commercial banks is related to macro-financial risks, especially in commercial banks ' bad loans had not occurred for a long time continuous upward pressure. In the context of slower economic growth, China's commercial banks should face the reality, accurate picture of the quality of credit assets, it is the inevitable requirement to avoid financial risks. Therefore, make five-category loan, improve data accuracy, regulatory authorities should seize the quality of credit assets of commercial banks. This not only requires supervisory authorities to strengthen supervision of risk and improve the five-tier loan classification quantification of identified actions. Meanwhile, also urged commercial banks to improve assessment mechanism, embodied in the amount of bad loans in the current period operating performance, intertemporal allocation is needed, only part of cash bonuses for the current period, the remaining bonus based on future performance in phases to deliver the quality of credit assets.
main index issued by the China Banking Regulatory Commission show that by the end of the third quarter of 2012, the commercial banks ' bad loans was 0.95%, 0.01% engaged than the end of the second quarter, credit asset quality stable. But bad loans totaled 478.8 billion yuan, had risen from four straight quarters. The 16 listed banks in the first half of this year special mention loans increased 28.385 billion yuan over the beginning, showing stress increases the potential risk of commercial bank credit assets quality, should be highly concerned about this.
while China's recent warming of main macroeconomic indicators stabilize, but judging from the micro-economic level, operational difficulties of enterprises are still large. In late September, national industrial enterprises above the designated size accounts receivable 8.1595 trillion yuan, an increase of 16.5% in 2012, 1 to September, profits of industrial enterprises above the designated size 3.524 trillion yuan nationwide, down 1.8%, displays the overall business performance of enterprises has yet to respond.

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