2019-06-02

PBoC Blames Tomorrow Group for Isolated Risk of a Bank Crisis

iFeng: 央行:明天集团违法违规占用资金 致包商银行出现严重信用危机
Sogou: Central Bank: Tomorrow, the contractor's bank will face a serious credit crisis due to the illegal occupation of funds by the group
The central bank official said that the major shareholder of the contractor bank is tomorrows group, which holds 89% of the contractor bank's shares. due to the illegal occupation of a large amount of the contractor bank's funds by the major shareholder, it is overdue and difficult to repay for a long time, resulting in a serious credit crisis and triggering the legal takeover conditions to be taken over according to law.

The following is the full text of the answer to the reporter's question by the relevant responsible person of the People's Bank of China:

I. What is the background for taking over the contractor bank? What do you think of this takeover?

A: Tomorrow Group is the major shareholder of the contractor's bank. The group holds 89% of the contractor's bank's shares in total. As a large amount of funds of the contractor's bank are illegally occupied by the major shareholders, it becomes overdue and difficult to repay for a long time, resulting in a serious credit crisis of the contractor's bank, triggering the legal takeover conditions to be taken over according to law.

As for the takeover of the contractor bank, it is a single case and we need to treat it objectively and calmly.


First of all, take over measures, the conditions are very strict. Taking over a commercial bank is a very serious and prudent act. This is the only way to deal with a commercial bank if article 64 of the Commercial Bank Law "commercial banks have or may have a credit crisis that will seriously affect the interests of depositors" and article 38 of the Banking Supervision Law "a credit crisis may occur that will seriously affect the legitimate rights and interests of depositors and other customers". Failure to take over will seriously damage the legitimate rights and interests of customers, especially the deposit safety of depositors. Therefore, it is not necessary to take administrative takeover as a last resort.

Second, the takeover of the contractor's bank is strictly in accordance with the law. The guarantee of creditor's rights for all kinds of creditors must first have sufficient legal basis. With respect to the creditor's rights and debt relations, acceptance bills, margin deposits and other issues involved in the guarantee of creditor's rights for large-amount creditors, contracts should be respected to encourage market players to actively perform. The legal rights and interests of creditors shall be informed according to law. For the signing of the agreement on the acquisition and transfer of creditor's rights, the agreement shall be negotiated on an equal footing and signed voluntarily. Creditors' rights that have not been guaranteed in advance will also continue to be retained, and creditors will participate in the subsequent compensation according to law.

Third, the degree of creditor's rights protection for the contractor's bank creditors is relatively high. After taking over the contractor bank this time, the bank will use deposit insurance fund and central bank's investment to undertake the acquisition, providing full protection to all kinds of creditors of the contractor bank. We have fully guaranteed 100% of the principal and interest of individual clients and clients of public and peer institutions with a value of 50 million yuan or less. For the principal and interest of the same large creditor with more than 50 million yuan, it is expected that the average guarantee ratio can be about 90% based on the net amount of creditor's rights. The above-mentioned safeguard standards have protected the legal rights and interests of various creditors to the greatest extent. This time, according to the idea of takeover, it is to effectively avoid the problems of direct settlement and low guarantee level. At present, it is a relatively safe way to invest in deposit insurance funds, support the central bank's "lender of last resort" in accordance with the law, and carry out acquisition and acceptance.

Recently, some people in the market are worried about whether other institutions will be taken over after the contractor bank is taken over. Please rest assured that there is no such plan at present. If any institution needs liquidity support, or increases capital and shares, it can be completely carried out through marketization. At present, the financial market is generally abundant in liquidity and the financial risks are generally controllable. We are confident of firmly maintaining the stability of the financial system.

II. How is the progress since taking over the contractor bank for one week?

A: Since the People's Bank of China and the China Banking Regulatory Commission jointly announced the takeover of custody on May 24, the takeover of custody has progressed smoothly with the strong support and cooperation of local governments and relevant departments. The rights and interests of various creditors of the contractor's bank have been safeguarded: first, 5.2 million individual depositors and over 200,000 individual wealth management customers have been fully protected; Second, the amount of creditor's rights is 50 million and below 25,000, which has been fully guaranteed to public and peer customers. Third, the contractor's bank's acceptance bills of 50 million yuan or less are fully guaranteed, and those of 50 million yuan or more are not less than 80%. At present, all kinds of business of the contractor's bank are operating normally, the business outlets are in good order, and all kinds of business are handled as usual. As a matter of fact, after the takeover, the contractor bank has received strong protection from the People's Bank of China, the China Banking Regulatory Commission and the deposit insurance fund. The issuance of interbank certificates of deposit last Friday has been recognized by the market. At present, the signing of agreements for the acquisition and transfer of large amounts of creditor's rights is progressing in an orderly manner.

III. What is the current liquidity situation of small and medium-sized banks?

A: Recently, the People's Bank of China has appropriately and timely released liquidity through various means such as open market operation and central treasury cash management. liquidity in the banking system is reasonably abundant. At the end of May, the money market interest rate was basically the same as at the end of last month, and the market sentiment was stable. Generally speaking, the liquidity of small and medium-sized banks is relatively sufficient and all liquidity indicators are at normal level. Judging from the transactions in the money market, the scale and proportion of small and medium-sized banks' financing transactions are stable, with no major changes. The financing interest rate is the same as that of the previous period, and the financing conditions are relatively relaxed. The People's Bank of China will continue to maintain reasonable and sufficient macro liquidity. At the same time, it will pay close attention to the liquidity situation of small and medium-sized banks and comprehensively use a variety of monetary policy tools to maintain the smooth operation of the money market.

The People's Bank of China has fully estimated and prepared various factors affecting liquidity in June. It will flexibly carry out reverse repo in the open market and facilitate medium-term lending according to the supply and demand of market funds. The second implementation of the policy of lower deposit reserve ratio for small and medium-sized banks on June 17 will also release about 100 billion yuan of long-term funds, effectively enriching the liquidity of small and medium-sized banks at the end of the half year.

At present, the People's Bank of China has a wealth of monetary policy tools, and we will match and make full use of them according to market conditions. In the process of deepening the structural reform on the financial supply side, the People's Bank of China will take supporting the development of small and medium-sized banks as an important content, continuously enrich the supporting tools, intensify the policy efforts, and continuously improve the ability of small and medium-sized banks to serve the real economy.

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