Silver China Insurance Regulatory Commission has proposed a new classification, which affects the poor the most stringent standards for banks generate?
21st Century Business Herald reported 21 Finance APP Yumin Li Beijing
April 30 to promote commercial banks to accurately assess credit risk, a true reflection of the quality of assets, the CIRC issued a silver "commercial bank financial risk asset classes Interim Measures" (hereinafter referred to as "Interim Measures"), and social public comment. "Provisional measures" to extend the risk classification of loans subject to credit risk for all of the financial assets.
President agrofirm told reporters in the 21st century business-Herald: «broaden the scope of the classification of assets, management of business information, classification of financial assets in the & # 39; an object that a & # 39 is a higher proportion of business for the bank's information management, we need to get more pull equipment, take up more capital. banks now have the information management business, its financial assets in the general classification were normal, if the management of business information through the air, asset classification, that some of them will migrate down, certainly reduces the quality of assets. "
There bankers believe Caliber expand classification, adverse numerator and denominator expanded simultaneously. Specific negative impact, depending on the quality of banks' assets. "Some investment banking business healthy, unhealthy low weight may fall out of the bad. Some lines may invest a negative pressure, which leads to an increase in non-productive assets in general. "
General manager of planning and finance, the bank said, "classification to extend the scope of the standard to the & # 39 is more stringent, quality of assets of commercial banks control more pressure, especially in the investment business in the five-category classification requirements, the same requirement regarding classifications of creditors, the number of days overdue request, I. The many commercial banks are now feeling that the project does not meet the standard. "
"Interim Measures" also requires more than 5% in the non-retail debt of the debtor Bank belong to the poor, and other debt obligations of the Bank shall be classified as poor. In days past due, stricter requirements for more than 90 days overdue debt, even if there is sufficient support, but must also be classified as poor.
The Governor of the above-mentioned agricultural firms said: "The clear minimum standards for the number of days past due assets classification, which is a & # 39 is part of the loan is mainly gray zone classification of bank assets, previously classified guidance is not clear, but the bank does not like the classification is often poor, affecting the quality of assets of the authenticity of the new approach with the accurate classification of non-performing loans that are bad for the entire banking industry, should grow. "
Silver CIRC relevant person, answering questions of journalists in the fact that the current guidelines for the classification of credit, provision of restructured loans should be divided into non-performing loans. The proposed introduction of "interim measures" in order to further improve the concept of restructuring.
First, a clear definition of asset reorganization to focus on "financial difficulties" and the two concepts of "contract adjustments" detailed provisions in accordance with different situations, to clarify the concept of restructuring contributes to the control of the classification of banks, regulatory arbitrage space jam
The second approach is based on the principle of "substance over form" is no longer uniform requirements have to be rebuilt in bad loans, but they must be divided into at least include the category. For a reorganization was poor, not observed up-regulation of normal or special requirements of the class period, after the restructuring. Third, the observation period of restructuring extended by at least 1 year, at least six months to take action relative ease during the observation period, would contribute to the smooth progress of the debt restructuring.
The governor believes that the above-mentioned agricultural companies restructured loans abolition of the "one size fits all" approach to the opposite classification, the concept of the principle of "substance over form", but also worried that the standard can produce both hope for an adjustment of the contract much as possible, and considers towards this problem, and is set to extend the observation period to compensate for this problem to some extent.
President of the agricultural firm believes that the implementation of the new approach, regulators can further understand the authenticity of the bank's asset quality, banks can reduce risk through timely and accurate classification, but for some banks, in particular, business information management, business-sheet high proportion of financial assets, such as bank asset quality causes some negative effects.