China's banking industry at system reform efforts being made
In August, ICBC (601398, unit bar) announced that its holdings of 3130$ huarong asset
management Corporation of 10-year bonds, 10-year extension of interest keep 2.25% unchanged, the Ministry of finance will continue to pay the principal and interest on the bonds. Prior to that, the Bank of China (601988, unit bar) and Bank of China in 2010, in July and September 2009 announced the extension of asset management companies and financial bonds. Notice the three rows of Replica Watches par total extension bonds equals 7260 billion. This group of financial debt is 10 years ago to clean up bad assets of four rows from the four dedicated to asset management companies and four rows and overcoming a directed the issuance of bonds, total 8200 million, secured by the Ministry of finance. Bond extension bulletin release, market view, this indicates that China's banking reform unsound, possible deterioration of bank assets, some people believe that this will contribute to the four lines of lending, causing a lot of bad loans, but in fact, an objective point of view, from the initial clean up bad assets in the bonds to the present note extension, which reveals the great wisdom.
10 years ago: four row Battlefront. Look at the situation 10 years ago: in 2000, China's financial income, and largest 1.34 trillion rows agricultural Bank of China 601288 data not available, full year operating income of 0.30 billion, net assets 0.47 trillion. 8200 billion of bad assets size is equivalent to three lines at the yearly 2.7 times and national revenue of more than 60%. Obviously, if the four lines at its own expense, and absorb these non-performing
Fake Watches assets, then four lines for the survival and development of private capital will be depleted, and even the state's fiscal time for such a huge amount of bad assets write off.
But at that time, China's banking industry at system reform efforts being made in the early days, from the original to plan to commercialization. Faced with such difficulties, the Government demonstrated outstanding talent, through the establishment of asset management companies and directed by the Ministry of Finance issued 10-year guarantee of long-term bonds, four rows of assets and liabilities of large non-performing assets into high credit bond assets. In doing so, the first four rows have no effect on their own capital and balance sheet Rolex Watches structure, improved asset quality; the second is not given the financial burden will increase any delayed release pressure, both to help remove the burden of the four rows to traveling, conducive to better promote structural reform, and also eases the implementation of the reforms to the State of stress.
10 years later: "time-space" success. See now, by 2010, China's budget revenue 7.39 trillion yuan, 8200 million for the price of a national fiscal revenue of more than 10%. It is not difficult to find, astronomical 10 years later, no longer so shocking. That's another 10 years, if the State finance is over 10 years of growth, by 2020, China's fiscal revenue of more than 40 trillion. In other words, to the next 10 years, even if the asset management company is all debt, insolvency and financial commitment by the State portion of the debt-servicing obligations, then the problem is most likely just promosting. The same is 8200 billion, 20 years time, they are original as shaken a mountain of problems easily. At the same time, the four lines of 2009, revenues reached $ 10311 billion, and net profit 3812 million, 10 years for a gratifying development. If at that time by four rows to dyspepsia assets, whether or not present, would have a leading position in global banking and if there was a Tiffany Jewelry State financial commitment in the face of so much pressure to promote economic development in China's positive fiscal policy much implementation space? the original decision was managing the wonderful, behind the decision is to have a thorough understanding of finance and the application of the rules of free, on the development of Chinese economy powerful confidence, as well as the time for space application. Then 10-year bonds settlement bad will retire.
Go back and look at the market of "criticism". China banking reform unsound, deterioration of bank assets may simply think that fundamental asset management companies and solvency of these bonds, because those bad assets recovery rate is very low, but don't forget those bonds are guaranteed by the Ministry of finance, national credit back support; that will promote the four rows of lending, causing a lot of bad loans, this may be considered national help four rows, dyspepsia assets will induce moral hazard, resulting in four rows of irrational lending, the view is apparently ignored the fact that over the past 10 years in the banking sector reform achievements four rows have already completed the institutional reforms and commercialization, became the owner of the modern enterprise management structure, the National Bank is no longer help the four lines of dyspepsia assets, while four line formed a perfect Bank management system, mechanism and the concept is no longer the original plan of State-owned banks, restraint, blind collateralised also hardly exist. Bond settlement of NPA is exploring the development of vision of the win strategy is in development best practice to solve the problem. Believe that 10 years after the successful completion of substantial non-performing Swiss Watches assets in the banks, to ensure the successful restructuring and the banking sector to guarantee economic development mission, such a policy would be the cleanest in the world. Dissolve the NPA is China's economic development and reform process, a small fragment of the economic development of the road, we need all kinds of wisdom.
China's banking industry at system reform efforts being made
By: louboutin88
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