Original title: Precise dismantling of shadow banking risks
The prevention and control of financial risks is the highlight of the battle to prevent and resolve major risks, and important phased results have been achieved so far. Recently, the China Banking and Insurance Regulatory Commission revealed that financial risks have gradually shifted from divergence to convergence, a number of major hidden dangers have been “precisely defused”, the scale of high-risk shadow banking has dropped by about 29 trillion yuan from its historical peak, and the financial order has improved significantly.
The so-called shadow banking mainly refers to the credit business of non-bank financial institutions. It is a credit intermediary system that is outside the banking regulatory system and may cause systemic risks and regulatory arbitrage, including various related institutions and business activities. Specifically, it includes inter-bank specific-purpose vehicle investment and inter-bank financial management, entrusted loans, trust loans, and P2P network loans.
The shadow banking business is nested in layers, some funds are not transparently invested, and it is difficult for regulators to effectively control the actual leverage ratio. When individual banks provide financing to enterprises, they use shadow banking to provide short-term funds for long-term project financing, which increases liquidity risks. In addition, shadow banking is also closely linked to some illicit credits. Individual banks have used the “channel” of shadow banking to turn “on-balance sheet” credit funds into “off-balance sheet” wealth management funds, which were supposed to support the real economy, and imported funds for some enterprises in violation of regulations, accumulating financial risks.
The business of shadow banking often crosses multiple markets and multiple financial institutions, which greatly increases the contagion of financial risks between different markets and institutions. Once the high-risk shadow banking business is out of control, it may lead to systemic risks.
In recent years, the regulatory authorities have taken the dismantling of shadow banking risks as an important task, and standardized the development of the asset management industry as an important starting point for this work. After continuous rectification, the risk of my country’s quasi-credit shadow banking has been significantly reduced, and the stock assets have been greatly reduced. It has effectively curbed the decentralization of funds from the real to the virtual, and created policy space for stabilizing the macroeconomic market and giving play to the counter-cyclical role of finance.
Although the rectification work has achieved obvious results, shadow banking is still a potential risk point in the current financial work, and it may rebound slightly if it is not careful. It should be noted that some shadow banking products have complex structures and high levels of leverage, and hidden risks are still relatively large. Some institutions may generate new variants of shadow banking under the banner of financial innovation, which deserves high vigilance.
It is necessary to strengthen the risk monitoring of credit-like shadow banking, and continue to reduce the high-risk shadow banking business. Multi-layer nesting, fund idling, deviating from real to false, and false financial innovation are strictly prohibited. Financial institutions should conscientiously implement the new regulations on asset management, complete the rectification of existing asset management business such as bank wealth management, trust and other existing cases on time, and prevent the disorderly increase of leverage through cross-cutting financial products again. Regulatory authorities should continue to strengthen the monitoring and analysis of various types of shadow banking business, make relevant response plans, and conduct timely supervision through the financial supervision coordination mechanism for some cross-market and cross-cutting new products and new businesses to prevent regulatory gaps and arbitrage. Behavior.
To prevent the risk of shadow banking from rebounding, it is necessary to maintain regulatory focus on banking and financial institutions, urge banks and other financial institutions to implement regulatory requirements, effectively regulate and rectify shadow banking and cross-financial business, unswervingly promote the transformation of wealth management business, and strengthen the cooperation between banks and other financial institutions. to better serve the real economy. Banking and financial institutions need to play a role in serving the real economy, and must not lose their financial origins for petty profits.
[Editor in charge: Cao Jing]