The person in charge of relevant departments of the Banking and Insurance Regulatory Commission recently said that since the beginning of this year, the banking and Insurance Regulatory Commission has placed stable growth in a more prominent position, further strengthened supervision guidance, continued to improve the quality and efficiency of serving the real economy, deeply promoted the structural reform of the financial supply side, and firmly held the bottom line of no systemic financial risks

The effective financial supply of the real economy continues to increase

The data show that the main operation and risk indicators of the banking and insurance industry are in a reasonable range.

Specifically, the effective financial supply of the real economy continues to increase. In the first eight months, RMB loans increased by 15.6 trillion yuan, 554 billion yuan more than the same period last year. At the end of August, the balance of insurance funds was 24.5 trillion yuan, an increase of 6.6% over the beginning of the year.

At the same time, credit support for key areas and weak links has been strengthened. In the first eight months of this year, loans to the manufacturing sector increased by 3.7 trillion yuan, 1.8 times that of the same period last year. At the end of August, the balance of loans for small and micro enterprises was 56.7 trillion yuan, of which the balance of loans for inclusive small and micro enterprises was 22.1 trillion yuan, an increase of 23.3% year on year. Outstanding loans for government-subsidized housing projects totaled 6.3 trillion yuan. Medium and long-term loans accounted for a further increase, in August, medium and long-term loans increased by 1 trillion yuan, accounting for more than 75% of the month's new loans.

Data show that the insurance business has maintained steady development. From January to August this year, the original premium income of insurance companies was 3.5 trillion yuan, an increase of 4.8% year-on-year, and the compensation expenditure and payment were 1 trillion yuan. The amount of risk protection provided by the insurance industry increased by 42.5% year-on-year. After the "9·5" Luding earthquake in Sichuan, the insurance industry received a total of 511 reports, and the amount of compensation is expected to be 114 million yuan.

In addition, the total assets of the banking and insurance industries grew steadily. By the end of August 2022, the total assets of China's banking financial institutions were 361.2 trillion yuan, an increase of 9.8%. The total assets of the insurance industry were 26.6 trillion yuan, up 10.3% year on year. The risk offset capacity is sufficient on the whole. At the end of August, the balance of non-performing loans of banking financial institutions was 3.8 trillion yuan, and the non-performing loan ratio was 1.80%, down 0.1 percentage points year-on-year, and the provision coverage rate was 200.5%.

China Development Bank has paid the first special loan for "guaranteed delivery of buildings"

The person in charge of the relevant departments of the Banking and Insurance Regulatory Commission said that the banking and Insurance Regulatory Commission actively promoted support for "ensuring the delivery of buildings and stabilizing the people's livelihood." On September 22, the China Development Bank has paid the country's first "guaranteed building" special loan to Shenyang, Liaoning Province, to support the Liaoning "guaranteed building" project.

In terms of stabilizing the economic market and supporting the real economy, the head of the relevant departments of the Banking and Insurance Regulatory Commission said that financial services in key areas continued to optimize. Outstanding manufacturing loans rose 20.5 per cent at the end of August from a year earlier. From January to August 2022, infrastructure construction loans increased by 2.95 trillion yuan, of which 2.32 trillion yuan was added to infrastructure construction loans of policy development banks and large banks. At the end of the second quarter, the outstanding green credit of 21 major banks was 18.6 trillion yuan, an increase of more than 20% from the beginning of the year. From January to August this year, the amount of short-term insurance insured by Export Credit Insurance Company increased by 14.7% year-on-year, providing strong support for stabilizing foreign trade.

The person in charge also said that the amount of policy-oriented development financial instruments put into the project has been implemented in the early stage, supporting more than 900 investment projects, and the total investment of the project is more than 3 trillion yuan, and the investment leverage effect is more obvious.

At the same time, financial support for weak links has been strengthened. Since the beginning of this year, banking institutions have handled more than 4 trillion yuan of deferred principal and interest payments for micro, small and medium-sized enterprises, individual industrial and commercial households and truck drivers.

For the accommodation, catering, retail, culture, tourism, transportation and other industries that are greatly affected by the epidemic, the CBRC has guided banking institutions to meet the reasonable financing needs of enterprises in relevant industries in a timely manner, and promoted insurance companies to further improve the business coverage of business interruption insurance, property damage insurance, employer liability insurance, cargo transportation insurance and other services, so as to enrich the channels for enterprise risk diversification.

Risks in key areas have significantly converged

Preventing and resolving financial risks is the fundamental task and eternal theme of financial work. The person in charge of the relevant departments of the Banking and Insurance Regulatory Commission said that the risks in key areas have changed from rapid divergence to obvious convergence, and the battle to prevent and resolve major financial risks has achieved important stage results.

Financial leverage, for example, has fallen markedly. The blind expansion of financial assets has been effectively curtailed. Since 2017, total assets in the banking sector have grown at an average annual rate of 8.2%, less than half the average annual growth rate between 2009 and 2016. In the same period, the average annual growth rate of bank loans and social finance stock was more than 12% and 14% respectively. The share of assets idling within the financial system has fallen sharply.

Shadow banking risks continue to converge. As of the end of the first half of this year, the scale of high-risk credit-like shadow banking has dropped by about 29 trillion yuan compared with the historical peak, capital protection financial management with huge hidden dangers has withdrawn from the market, interbank financial management has fallen by 99% compared with the peak, and interbank investment and non-standard financing have decreased significantly.

In addition, financial violations are severely punished. Dealt with Anbang Group, Huaxin Group and other serious illegal enterprises according to law, and completed the takeover of Baoshang Bank and "Tomorrow Department" 6 insurance trust institutions. Since 2017, the regulatory authorities have punished banking and insurance institutions 18,700 times, with a total fine of 14.037 billion yuan, more than the sum of administrative penalties in the previous decade.

"At present, it is at the critical juncture of economic recovery, the economic operation is facing some unexpected factors, and the complexity, severity and uncertainty of the economic development environment are rising, but China's economy has good resilience, sufficient potential and large room for maneuver, the good trend of sustained recovery and development has not changed, and the factors supporting high-quality development have not changed." China's banking and insurance industries are operating soundly, their ability to resist risks has been significantly enhanced, their asset quality has remained stable as a whole, and their risks are fully controllable." The head of the relevant departments of the banking and Insurance Regulatory Commission said.

Since 2018, more than 120 foreign-funded institutions have been approved

Financial reform is a major part of economic reform. The person in charge of the relevant departments of the Banking and Insurance Regulatory Commission said that since the 19th National Congress of the Party, the banking and insurance Regulatory Commission has solidly promoted the deepening reform and expansion of the opening up of the banking and insurance industry and promoted the realization of high-quality development.

Specifically, first, the corporate governance of financial institutions has been further consolidated. Strengthen Party leadership and party building in banking and insurance institutions, and formulate corporate governance guidelines for the banking and insurance industry. Strengthen the penetrative supervision of shareholders' equity, and strengthen the "firewall" of industrial capital and financial capital. Organized a three-year campaign to improve corporate governance in the banking and insurance industries, carried out corporate governance assessments of banking and insurance institutions for two consecutive years, and disclosed five batches of 124 illegal shareholders to the public.

Second, the structural reform of the financial supply side made solid progress. Guide all kinds of banking and insurance institutions to focus on the main responsibility and business, clearly differentiate the market positioning, and form a distinctive competitive advantage. For example, we will deepen the reform of policy banks, implement the ledger management of policy and self-operating, development and commercial businesses, and clean up and exit businesses that deviate from their positioning. We carried forward reform of the insurance industry, continued to reform the use of insurance funds, comprehensive reform of auto insurance, and reform of the pricing mechanism for accident insurance, and accelerated the development of the reinsurance market.

Third, the quality and effectiveness of the banking and insurance industries in serving the real economy continued to improve. We will give a more prominent position to stabilizing the macroeconomic market. We will improve financial policies to help stabilize economic growth, and take the initiative to make financing arrangements for enterprises in industries that have been hit hard by the epidemic. We will strengthen funding for major national strategies and key projects, and increase financial support for infrastructure construction projects.

Fourth, supervision is increasingly effective and law-based. If the intensity of administrative penalties is increased, a total of 4,077 administrative penalties were implemented in the first half of 2022, punishing 3,157 persons responsible, and the total amount of fines was 1.257 billion yuan.

5) High-level financial opening-up continued to deepen. Since 2018, the China Banking and Insurance Regulatory Commission has successively introduced 34 measures to open up the banking and insurance industries, and newly approved more than 120 foreign-funded institutions of all kinds.