China's Banking Industry Is Facing Credit Risk.

　 IMF: prepare for challenges.

"In the past few years, CBRC The forward-looking leadership has been supported by the entire banking sector and the state, and China's banking system has made impressive progress. In the report on compliance with the core principles of Basel on effective banking supervision, IMF pointed out that China's banking industry has achieved remarkable results in risk testing and management with the support of high quality capital and liquidity supervision. However, with further opening up, financial innovation and expansion of China's banking industry, financial complexity and risk will also increase, and the CBRC and banking institutions must quickly adapt and prepare for challenges in the short term.

　　 IMF The report is positive and effective in the reform process of China Banking Regulatory Commission, affirming the regulatory requirements for core capital and risk management of banks, and calls for continuous efforts in the right direction, and requires the full support of all government parties and banking institutions.

However, IMF also pointed out that China has not yet conducted stress tests on new risk regulation, risk testing and management systems in the banking industry, and warned that the credit crisis is one of the most important risks facing China's banking sector in a certain period.

actually Bank Policymakers and some of the CBRC officials have paid close attention to the issue of non-performing loans. It is easy to understand the serious bad debts that Chinese banks once witnessed in the 90s of last century. However, it is not simple to control this in advance. Although the CBRC executives and some banks understand the necessity of early adjustment of the credit, the evaluators believe that this awareness of early control has not yet fully formed in the regulatory body.

In other reports, IMF said that under the close supervision of the CIRC, the insurance industry in China basically complied with the corresponding management standards. In view of the rapid growth in China in the past five years and the huge fluctuations in the securities market, the SFC implemented a series of important reform measures to adapt to these changes. China's payment and securities settlement system and other financial infrastructure have been improving and better complying with relevant international standards and guidelines.

In addition, the stress tests conducted by IMF and China's 17 largest commercial banks also show that most Chinese banks are able to withstand separate shocks, including the deterioration of asset quality as a result of the adjustment of the real estate market, the movement of yield curves and exchange rate changes.

　　 People's business: finding deficiencies and deepening reform

After the IMF report was released, the people's Bank of China issued a statement saying that China has been unswervingly pushing forward the reform in the financial sector and promoting the development and stability of the financial sector through reform. Since 2003, we have promoted and completed a series of landmark financial reforms, such as financial restructuring of major financial institutions, introduction of strategic investors and public listing. With the deepening of reform, financial indicators of large financial institutions have been continuously improved, corporate governance has been standardized and risk management capabilities have been significantly improved. In the process, China's financial and financial markets have also been improved in implementing relevant international standards. Under the dual background of "emerging" and "transition", China's financial system has made considerable progress, and the financial system has been remarkably strengthened, effectively resisting the impact of the international financial crisis.

As for the evaluation report, the central bank said that due to the limitations of the analysis framework and resources, there are also some individual reports that fail to fully understand the stages and characteristics of China's economic development. But in general, many suggestions put forward by the evaluation report still have important reference value for improving China's financial system. The central bank said that it is willing to deepen cooperation and exchanges with international financial organizations on this basis, actively draw on useful suggestions from the report, earnestly search for deficiencies, continue to promote the deepening reform of China's financial industry, improve the framework of financial stability and crisis management, strengthen the effectiveness of financial supervision, further improve the financial infrastructure, raise the level of financial services, and support the steady and healthy development of the national economy.

　 China's financial sector accepts IMF assessment for the first time

The series of reports is one of the results of the IMF and the world bank's "financial sector assessment plan" (FSAP) for China. It contains five parts, including the observance of the Basel core principles on effective banking supervision, the compliance with the objectives and principles of the Securities Regulatory Commission of the international securities regulatory Commission (IOSCO), the observance of the core principles of the Insurance Association of the international insurance regulatory agencies (IAIS), the observance of the core principles of the system of payment and settlement system (CPSS), and the compliance with the recommendations of the CPSS-IOSCO on the securities settlement system and the central rivals. This is the first time China's financial system has been assessed by the IMF financial sector assessment plan.