Currently the Bank's risk situation is high
2009 in the global financial market downturn, Bank of China (601988
, share it) industry has maintained a good trend. But as a response to the financial crisis, in an active fiscal policy and loose monetary policy background, bank credit scale exponentially, 2009 credit amount reached 9.59 trillion, make bank credit assets quality. China's real estate prices in 2009, a strong rise, prices further away from the residents ' income levels, foam. Real estate development
Replica Watches in most of the major sources of funds from the Bank's credit funds, and at present, China's commercial banking operations in a single, highly dependent on real estate loans, such as China's next economic restructuring, asset price guide, prices come down, step by step will increase the Bank systemic risk.
As of 2009, the new loan mainly local government financing platform reached 7.2 trillion yuan, and the next two years follow-up loans in place may reach 10 billion. While most financing platform itself does not have the ability to repay the debt, and its own repayment will also relatively weak. At the same time, due to problems of asymmetric information, local government, often through multiple financing platform company from a number of banks to obtain credit, the Bank will not be able to truly master servicing body size and overall solvency liabilities, together with the local government financing platform overall debt level is too high, so that banks face a greater risk of recessive.
Currently the Bank's risk situation is high and the development of China's financial system and characteristics are inseparable. First, China's financial system has long attached to government finance, an independent financial system Fake Watches development later, reforms have not perfected, as a result of China's financial system is still in the Central and local government under control. This period of economic transition, on the one hand, the State-owned enterprises, regardless of the cost of pursuing the loan, expand production scale, on the one hand, and local governments and leaders from all around the branch of a non-economic objectives, some do not have a loan qualification of enterprise loans, leading to substantial accumulation of debts of banks.
Government capital injection four State-owned banks, commercial banks nonperforming loans, split the profits, but the fundamental problem of governance structure has not been resolved, as a Government-owned, often in order to achieve a number of non-economic objectives on the Bank's influence, distort the banks business goals. In addition due to the large State-owned banks, fail stress makes the government-owned banks bear unlimited liability, and produces a "belongs to the Bank, loss of profits the State," moral hazard, to a certain extent, the Bank had a high degree of risk. These are the birth of the bad assets of commercial banks.
The current round of the real estate market, in a more moderate rate (rates dropped by not more than 30%, not because of the adverse effects of associated loan bank overall asset quality. Even if the real estate market, due to the large adjustments will result in bad debt risk real estate banks involved in the limited size of the loan amount, plus China not Rolex Watches through a variety of complex financial instruments of the real risk high leveraged, so the price fluctuations on the impact of China's financial system is relatively small. Relative to real estate, local government financing platform regardless of the total amount of the loans involved, or because of their own information opaque result press for payment ratio is high, and the limited capacity of repayment, as well as secured party low repayment will have to bank systems are at greater risk, but also more likely to break out. Once the local financing platform loan questions focused outbreaks, caused by bad level will reach the Bank could not bear, which can be used only by the Government for its commitment.
But this risk when a bank is bad, although a high government spending, the financial means to save the banking system for protection, does the bank crisis broke out, but will still be on the economic and social security have many negative impacts. Government Banking rescue directly injected into both spend the budget of income, special bonds or supplementary use of State-owned commercial banks and foreign exchange reserves will necessarily aggravate the capital budget deficit and the debt risk, inevitably Tiffany Jewelry including SME loans, and financial health, education, pension and other aspects of the support, but also to hinder the financial reform tax reform, as well as the role of the real estate regulatory efforts. At the same time the Government Bank assistance may also be increased to a certain extent, the residents of inflation expectations, and the local government debt, high enterprises will affect rural development and stability.
Currently the Bank's risk situation is high
By: louboutin88
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