中国日报:中国可能不久将会设立独立的存款保险机构
2019年03月15日 07:36 新浪财经
新浪财经讯 3月15日消息,《中国日报》(英文版)今日报道称,中国可能不久将设立独立的存款保险机构。
《中国日报》援引不具名政策制定者称,中国可能很快将会设立一家独立的存款保险机构,该机构业务将会涵盖接受公众存款的金融企业。该机构的设立旨在保护存款者以及维护金融服务业的稳定。
以下为《中国日报》(英文版)报道全文:
Central bank‘s financial stability bureau presents proposal to top legislature
China may soon establish an
independent deposit insurance agency covering financial institutions that
accept deposits from the public, according to some
knowledgeable policy advisers.
The proposed agency will seek to
protect depositors, they said.
Such cover will likely be up to the
insured limits applicable to depositors, and will help
maintain the stability of the financial services sector, they said.
More details, such as the functions of the agency, which
is being envisaged as a separate legal entity, are
being worked out.
The larger idea, designed and proposed to the country‘s top
legislators during the ongoing two sessions, is that
such a mechanism will be of great help in the event of a bank run or credit
risks.
Based on the scheme, the proposed insurance fund manager will collect premiums from
member financial institutions.
Such premiums will be
differentiated based on risk levels applicable to each such member.
The institutions can make a claim
for payment, or start the depositor reimbursement, under certain conditions, according to the
proposals viewed by this reporter.
It will be the first such national
agency to be created under the basic deposit insurance system established in
May 2015.
The proposed agency could help
failed banks exiting the market, limit depositors‘ losses, and prevent risk contagion from
spreading to the whole financial system, the officials
concerned said.
The central bank has already
collected insurance premiums from depository financial institutions seven times. And the deposit insurance fund amounted to 81.5 billion yuan ($12.13 billion) by the end of September 2018, according to the financial stability bureau of the People‘s Bank of China.
According to a proposal presented
to the National People‘s Congress by Wang Jingwu, head of the PBOC’s financial stability
bureau, when financial institutions‘ capital adequacy ratio-the adequacy of their capital keeping in
view their risk exposures-drops below 2 percent, or
when there are serious credit risks, the resolution
process will get triggered. The insured institutions
could then take self-rescue measures within 90 days.
“The deposit insurance fund
management institution could use the fund to inject capital in Systemically
Important Financial Institutions,” said Wang.
China‘s
four largest banks are in the SIFIs group, a term
comparable to “too big to fail”. Any improper disposal of their risks may lead to systemic shocks.
Bai Hexiang, head of the PBOC‘s Guangdong branch, said the fund management agency could be authorized with the right
to access banks’ information,
in order to recognize potential risks at an early stage, and to reduce the possibility of bankruptcy.
The establishment of the agency is necessary, given the possibility of a further drop in real GDP growth this
year from 6.6 percent in 2018, analysts said.
Economic headwinds may highlight
the need for ensuring banks‘ asset quality, with nonperforming loan ratios and credit costs elevated but not
deteriorating, said Nicholas Zhu, a Moody’s vice-president and senior analyst.
China‘s
monetary policy in 2019 will support system-wide liquidity and general
repayment capacity among borrowers, but also slow the
nascent decline in system-wide leverage over the past year, he said.
China‘s
banking system risks are concentrated in rural and small banks, which account for 10 percent of total assets, and are usually in the form of non-performing loans higher than the
system-wide average by about 2.5 percentage points at the end of 2018, according to the PBOC’s financial stability
report.
To enhance banking system stability, the China Banking and Insurance Regulatory Commission also
strengthened regulations for rural commercial banks in January.
According to CBIRC data, the listed banks‘ capital adequacy ratios
all stood above 10 percent by the end of last year.
Most of the smaller rural banks’ capital adequacy level
has improved compared with that in 2017, on the back of
increase in loans.
The proposed deposit insurance
system was designed based on the practices in the United States, said Zhou Xuedong, the former head of the
stability bureau.
The US was one of the earliest
countries to establish the deposit insurance system in the 1930s.
In July 2008, the Basel Committee on Banking Supervision and the International
Association of Deposit Insurers decided to collaborate to develop an
internationally agreed set of core principles for deposit insurance.
In 2017,
based on a scrutiny of China‘s financial sector, the International Monetary Fund said the deposit insurance scheme
is “in compliance with international core principles”.
The IMF wrote in its Financial
System Stability Assessment Report that the system,
which was put in place in 2015, is able to take care of
any insolvency problem effectively.
“The implementation of a deposit
insurance system will provide support for the orderly shutdown of financial
institutions, and assistance for sorting out contingent
liabilities,” said the IMF.