The State Administration for Financial Regulation has issued a heavyweight signal!, First press conference loan | General Administration | News
On July 27th, the State Administration for Financial Supervision and Administration held a press conference on the operational data of the banking and insurance industries in the first half of 2023. This is the first press conference held by the State Administration for Financial Regulation since its listing.
From the perspective of the operation of the banking and insurance industry itself, the relevant department heads of the State Administration of Financial Regulation stated that in the first half of this year, the main business of banking and insurance maintained steady growth.
As of the end of the first half of the year, the total assets of banking and financial institutions reached 406.2 trillion yuan, a year-on-year increase of 10.5%. The total assets of insurance companies reached 29.2 trillion yuan, a year-on-year increase of 9.6%. The balance of insurance fund utilization was 26.8 trillion yuan, a year-on-year increase of 9.7%. RMB loans increased by 15.7 trillion yuan, an increase of 2.02 trillion yuan year-on-year. Bank and insurance added 6.4 trillion yuan in bond investment. The original insurance premium income of the insurance company was 3.2 trillion yuan, a year-on-year increase of 12.5%. The amount of risk protection provided was 6930 trillion yuan, and the compensation and payment expenses were 915.1 billion yuan, a year-on-year increase of 17.8%.
Meanwhile, in the first half of the year, commercial banks achieved a cumulative net profit of 1.3 trillion yuan, a year-on-year increase of 2.6%, a decrease of 4.5 percentage points compared to the same period last year. The balance of commercial bank loan loss provisions increased by 456.1 billion yuan. The provision coverage rate is 206.1%, which continues to maintain a high level. The capital adequacy ratio of commercial banks is 14.66%. At present, the comprehensive solvency adequacy ratio of the insurance industry is 190.3%, maintaining within a reasonable range.
Guide financial institutions to effectively serve and expand domestic demand
"The State Administration for Financial Regulation continues to guide banking and insurance institutions to increase support and optimize financial services, especially to effectively expand domestic demand and promote sustained economic recovery." The relevant department head of the State Administration for Financial Regulation introduced that in the first half of the year, the State Administration for Financial Regulation guided banking and insurance institutions to increase support for consumption, standardize the development of consumer finance products and services, encourage the consumption of new energy vehicles, green household appliances and other bulk commodities, promote the improvement of residential consumption, actively develop service consumption, unleash the potential of travel consumption, accelerate the cultivation of new types of consumption, vigorously promote green and low-carbon consumption, and enhance consumer confidence.
As of the end of June 2023, credit card, automobile, and other comprehensive consumer loans increased by over 710 billion yuan compared to the beginning of the year; The loan balances in wholesale and retail, accommodation and catering, leasing and business services, and cultural, sports, and entertainment industries increased by 16.5%, 10.8%, 16.9%, and 7.7% year-on-year, respectively.
"Next, we will continue to strengthen policy support for the recovery and expansion of consumption." The relevant person in charge of the State Administration of Financial Regulation stated that financial institutions are particularly encouraged to actively develop financial products and services that meet the characteristics of different consumer groups, support commodity consumption, and strengthen comprehensive financial support for service consumption around key areas such as education, culture, sports, and entertainment.
At the same time, it is necessary to strengthen insurance protection services and promote the restoration and optimization of the consumer market environment. The person in charge revealed that the State Administration for Financial Regulation encourages insurance institutions to actively develop diversified and personalized insurance products such as travel agency liability insurance, passenger accident insurance, new energy vehicle insurance, automotive quality and safety liability insurance, commercial medical insurance, etc., to provide insurance protection to support consumer recovery and development.
In addition, the State Administration for Financial Regulation will guide consumer finance companies and automotive finance companies to compete and complement the traditional consumer business of commercial banks, and provide professional financial services.
"Promote banking institutions to deeply cultivate the segmented consumer finance market, develop diversified consumption scenarios, improve the quality of retail services, and meet the reasonable consumption credit needs of residents," said the person in charge.
The person in charge of consumer finance stated that the State Administration of Financial Supervision will strengthen the management of consumer loan purposes, regulate credit card business, and prevent and resolve risks related to consumer finance.
Private enterprise loans increased by over 900 billion yuan year-on-year
According to the person in charge, in the first half of this year, the State Administration for Financial Regulation guided banking and insurance institutions to continue to promote key areas to fill gaps, increase financing support for major projects in line with the national development plan, and focus financial resources on infrastructure such as energy, transportation, water conservancy, logistics, and ecological environment protection, further promoting the high-quality development of the financial service manufacturing industry. In the first half of the year, the balance of infrastructure construction loans increased by 1.05 trillion yuan year-on-year, and the balance of manufacturing loans increased by more than 180 billion yuan year-on-year.
In terms of support for private enterprises, the person in charge stated that private enterprise loans increased by 5.5 trillion yuan compared to the beginning of the year, an increase of 901.6 billion yuan year-on-year. As of the end of June, the balance of loans to private enterprises increased by 13.1% year-on-year.
In addition, in the first half of this year, banking institutions increased their investment in personal housing loans, with 92% used to support the purchase of the first home, reasonably meeting the credit needs of the needy group. Housing rental loans increased by 90.2% year-on-year. Loans for affordable housing projects continue to grow.
The relevant person in charge of the State Administration for Financial Regulation stated that in the future, financial institutions will be guided to further grasp the strength of credit allocation in terms of total amount, pace, price, coverage, etc., to help the real economy continue to recover and improve.
Consumer recovery supports the recovery of demand for small and micro loans
In the first half of this year, banking, insurance, and financial institutions focused on areas such as accommodation, catering, retail, culture, tourism, transportation, and foreign trade, especially small and micro enterprises and individual businesses with good business prospects but whose operations have not fully recovered due to the impact of the epidemic, and increased their service coverage. Data shows that inclusive small and micro enterprise loans increased by 3.8 trillion yuan, an increase of 1.1 trillion yuan year-on-year; The average interest rate for inclusive small and micro enterprise loans decreased by 0.49 percentage points year-on-year.
"This year, the growth rate of credit allocation to small and micro enterprises in the manufacturing industry has been relatively fast, with nearly a quarter of the bank's total inclusive finance loan balance coming from the manufacturing industry." A person from a state-owned large bank told Securities Times Securities China reporter, and another major business comes from the retail industry. "After the adjustment of epidemic prevention and control policies, consumption has improved, and the loan demand for these small and micro enterprises has also recovered to some extent."
Practitioners in inclusive finance told reporters that overall, the top three industries in terms of inclusive small and micro business investment are retail, manufacturing, and construction, with similar differences among banks.
The person in charge of the above-mentioned large bank introduced that the business of small and micro enterprises is scattered, and financing lacks sufficient and effective guarantees. The use of funds is "short, small, frequent, and urgent", with a low degree of standardization, and financing difficulties are more prominent.
"In response to issues such as the lack of collateral guarantees for small and micro enterprises and the mismatch between loan terms and production and operation cycles, the State Administration of Financial Regulation encourages banks to develop credit loans, renewal loans, and medium - and long-term loan products." The relevant person in charge of the State Administration of Financial Regulation pointed out that as of the end of June 2023, credit loans, renewal loans, and medium - and long-term loans for small and micro enterprises increased by 37.93%, 30.64%, and 24.45% year-on-year, respectively.
Data+inclusive "chemical reactions"
From the specific practice of banks, promoting the digitization of inclusive small and micro businesses is currently an important development direction. "Data has undergone a good chemical reaction when encountering inclusive services, which has changed the appearance and operation mode of the industry. So, how can data be used for inclusive services? How can data be used for small and micro enterprises? In fact, there are two questions: how can data be obtained and how can data be used." The head of inclusive services at a certain large bank told Securities Times and Securities China reporter.
Currently, data such as taxation, industry and commerce, judiciary, customs, etc. are available for various stages before, during, and after the loan. This expert told reporters that these data have further broken the information asymmetry problem of difficult and expensive financing. Small and micro enterprises and individual businesses used to lack information and credit, but now information and credit can be well supplemented with data.
"We have a lot of data, including useful water and tax data. How should we use it? In fact, we need to use the power of financial technology and banking models." The expert said that ultimately, we need to empower ourselves through financial technology, using scoring card models, credit evaluation elements, etc., to achieve online instant loan applications and rapid responses.
On November 12, 2013, the Third Plenary Session of the 18th Central Committee of the Communist Party of China passed the Decision of the Central Committee of the Communist Party of China on Several Major Issues Concerning Comprehensively Deepening Reform, proposing to "develop inclusive finance, encourage financial innovation, enrich the levels and products of the financial market," marking the establishment of inclusive finance as a national strategy. Industry insiders told reporters that the past five years have been an accelerated period for the development of inclusive finance.
According to data from the State Administration of Financial Regulation, as of the end of the first half of this year, the balance of loans for inclusive small and micro enterprises in China reached 27.37 trillion yuan, and the number of customers with loan balances reached 41.1512 million. The average growth rate of these two indicators in the past five years has exceeded 25%.
The relevant person in charge of the State Administration for Financial Regulation stated that the State Administration will continue to adhere to the fundamental position of putting the people at the center, use greater efforts and more practical measures to promote the high-quality development of inclusive finance, promote the service of the real economy, and help achieve common prosperity.
