The CBRC Released the 2011 Annual Report


Recently, the CBRC has released the 2011 Annual Report, which covers such aspects as economic and banking developments, banking services to real economy, prudential supervision, improvement of regulatory framework and supervisory capacity, financial consumer protection and education, information disclosure, social responsibility and etc., together with broad-based banking data disclosed.


According to the Annual Report as of end-2011, THE total assets of China’s banking institutions reached RMB113.3trillion, an increase of 18.9% year-on-year; total liabilities amounted to RMB106.1 trillion, increased by 18.6% than last year, and owner’s equity registered RMB7.2 trillion, up by 23.6% year-on-year. The overall weighted average CAR of commercial banks hit 12.71%, up by 0.55% year-on-year, with the CAR of all the 390 commercial banks surpassing the minimum regulatory requirements of 8%. The NPLs totaled RMB1.05 trillion, decreased by RMB190.4 billion year-on-year, while the NPL ratio dropped to 1.77%, down by 0.66% year-on-year. Meanwhile, commercial banks set aside RMB1.19 trillion for the loan loss reserves, representing an annual increase of RMB246.1 billion; the provisioning coverage ratio was 278.1%, increased by 60.4% year-on-year, indicating further enhancement of the loss absorbency capacity of the banks.


The Annual Report states that in 2011, the CBRC conducted the risk-focused supervision, firmly defended the systemic and regional risks and intensified the risk controls in key areas, which further underpinned the soundness of the banking sector.


In credit risk supervision, the risks related to LGFP loans were well under control; risks associated with real estate loans were reduced; management of credit reimbursement was improved gradually; and control of concentration risk was further intensified. The firewalls among banking institutions, shadow banking and private financing were further enhanced.


In terms of liquidity risk, with the regulatory standards, banking institutions improved their liquidity management capacity. In operational risk supervision, the CBRC took a tough stance in cracking down on banking frauds and crimes to actively control the risks. In 2012, the CBRC will stay committed to strengthening risk-focused supervision and be more forward looking amidst the complicated and changing environment, address the impacts of various destabilizing and uncertain factors, to ensure prompt and effective risk identification and resolution.


In 2011, with the aim to better serving the real economy, the CBRC improved the credit support to key areas and weak fields, guiding the banking institutions to solve the financing difficulties in economic development. More credit support was channeled to strategic emerging industries, green and low-carbon industries, and welfare-related sectors like affordable housing projects, in support of the regional development strategy and the optimization of credit sector structure and regional structure. The banking institutions allocated more credit resources to the agro-related areas and SMEs, and the target of “two no lower than” was realized in a timely manner. In 2012, the CBRC will guide the banking institutions to enhance the service awareness, innovate the service mode, and improve the service quality, in a bid to better serving the real economy.


The 2011 annual report also briefs the CBRC’s work in speeding up the banking restructuring and institutional reform. In 2012, the CBRC will further the strategic transformation of the banking sector and help banking institutions to enhance their corporate governance, development strategies, compensation scheme and internal driving force, by means of optimizing the regulatory indicators and institutional arrangements.


The annual report emphasizes the importance of financial consumer protection to maintain their confidence in financial market and the steady development of the banking sector. Progress has been made in regulating banks’ operation, intensifying supervision and increasing the information disclosure in 2011. In 2012, the CBRC will work with relevant government authorities to crack down on the illegal banking activities and build the financial consumer protection system.


The full text of both Chinese and English versions of the 2011 Annual Report are available for download on the CBRC official website.



Copyright: China Banking Regulatory Commission
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