Distribution of major industries of loans

China's commercial bank credit structure

.1 China's commercial banks credit term structure distribution is unreasonable

Currently, China's commercial bank credit term structure is the problem of: too high a proportion of long-term credit, short-term credit is too small. This has gone through a process of change. Since the reform and opening up, the banks in accordance with China's national conditions and the credit market demand for most of the credit term for short-term. As a result, the proportion of short-term loans in China's bank lending business has been more than 50%. But with the development of the economy and the reform of China's state-owned banks listed, in the pursuit of the principle of maximum shareholder profits, now commercial banks are more and more emphasis on long-term, stable earnings, therefore, most banks continue to adjust the short-term assets, increase long-term credit assets, and even some banks at the expense of liquidity and increase long-term loans.

From Fig. 1, we can see that the proportion of short-term loans decreased by 2.4% in 2008 compared with the proportion of short-term loans in 2006. The proportion of medium- and long-term loans increased from 47.3% to 51.1% in 2008, an increase of 3.8% year-on-year. The growth rate of medium- and long-term loans was 7.9% higher than that of short-term loans. This set of data not only fully reflects the changes in China's credit market demand, but also the banks to increase credit risk management, improve the return on credit assets is a true reflection. It is worth noting that the bank's behavior at the expense of liquidity will increase the bank's credit risk, especially the financial crisis will lead to the bank's liquidity is tight, if the bank's proportion of medium- and long-term loans is too high the consequences will be very serious.

1.2 China's commercial banks credit ownership structure allocation imbalance

Currently, China's commercial banks credit ownership structure of the problem is: credit allocation to the state-owned enterprises tilted to the larger and China's non-public sector of the economy of the enterprise's credit allocation is relatively small, resulting in the credit allocation in the ownership of the existence of the phenomenon of proportional imbalance.

China is a socialist market economy with public ownership as the mainstay and a variety of ownership **** with the development of the socialist market economy. With the deepening of the market economy, the non-public economy has made rapid development. Among them, the private economy is increasingly becoming an active point of economic development. But the private economy and other non-public economy in the development of certain obstacles, including the commercial bank credit allocation is our urgent need to solve the problem. For a long time China's banking industry in the state-owned banks in the monopoly environment of growth, naturally in the allocation of bank credit to the state-owned enterprises tilt, to the private sector credit support is less, which has a systemic problem, but also information asymmetry results, because the bank is difficult to distinguish between the enterprise full credit information, while the cost of obtaining this kind of information is higher, so the bank is more willing to choose a better understanding of the credit of the state-owned enterprises with state support, the state-owned enterprises are better. So the bank prefers to choose the state-owned enterprises which are better known and have the support of the state.

1.3 China's commercial banks credit sector distribution is unreasonable

Since the reform and opening up of China's credit sector distribution there is a relatively large imbalance phenomenon. Mainly manifested in: industrial credit supply more, agricultural credit support less; productive credit follow up faster, consumer credit follow up lagging behind; traditional industry credit support big, sunrise industry credit support less; which is particularly noteworthy is the real estate credit fund risk is too high, which will not be conducive to the healthy development of China's commercial bank credit fund.

In the reform and opening up of more than 30 years along with the country's credit support, China's productive forces, especially in favor of faster economic development to pull the development of the industry and the field of rapid development. Among them, the traditional manufacturing, processing industry, steel and cement industry has been a great development, at the same time, some capital-intensive industries such as real estate, IT industry, financial industry has also been rapid development. The reason for such great results is not unrelated to the credit tilt of our banks to these industries. But at the same time see these results, we should see in the bank credit policy under the shelter of some high energy consumption, high pollution, high duplication of construction, high-risk projects exist for a long time. These projects are characterized by: higher risk, by the policy impact. The existence of this phenomenon in addition to the country's long-term bank credit industry rationing policy, but also involves the interests of various local and departmental interests. At the same time, we should also see that the bank's credit support for agriculture is relatively small, resulting in agriculture has long been in a backward state. And credit funds are mainly concentrated in the power, petrochemical, petroleum, telecommunications, transportation, railroads and other natural monopoly industries.

Problems in the credit structure

The traditional inertia of the state-owned commercial banks' own operation and the reform costs borne for the transformation of the country's economic system have led to obvious defects in the credit structure of the state-owned commercial banks. The defects and imbalance of the credit structure has led to the proportion of non-performing loans is too large, the negative correlation between the total amount of loans and the quality and efficiency of the loans, the quality and efficiency of the loans have been declining year by year, and the loans in general show the characteristics of high risk. State-owned commercial banks currently credit structure of the serious defects are highlighted as (to Liaoning a two junk branch as an example):

One is the distribution of the economic composition of the existing credit assets: Taili. State-owned and collective ownership customer loans accounted for more than 90% of all loans; and township and village enterprises, private, individual, joint-stock, joint-stock Taiwan, three-funded, individual customers accounted for a small proportion of only about 8% of all loans.

The second is that the industry distribution of existing credit assets is unreasonable. Traditional industries such as textile, coal, chemical and domestic trade account for more than 80% of all loans, while emerging industries such as science and technology, real estate, electric power, transportation, construction, pharmaceuticals, communication services, and hospitals and schools account for only about 15% of all loans.

Third, the maturity structure of existing credit assets is not reasonable. Short-term loans account for more than 75% of all loans, and medium- and long-term loans account for about 25% of all loans.

Fourth, the business structure of existing credit assets is not rational. In terms of the types of credit assets. Liquidity and fixed assets and other traditional loans account for more than 90% of all loans, while real estate, personal consumption, other medium- and long-term loans and other new loan types. Only about 5% of all loans.

Commercial bank non-performing loans industry distribution

From the industry distribution, the central region, Hubei Bank (Wuhan) Corporation non-performing loans. First of all, the central region, the epidemic outbreak is in Wuhan, Wuhan and the entire central region of the economic hub, the epidemic led to Wuhan's economic growth stagnation, Wuhan in the first quarter of 2020, the cumulative GDP fell 40.5% year-on-year, a record low of historical growth over the past few decades, and many enterprises therefore bankruptcy and closure, their loans in the bank also became sub-prime, doubtful or even loss loans, so non-performing loans obviously rose.

What industry sectors do banks mainly lend to? What factors will affect the bank's performance

One, the bank's loan object includes: industry, agriculture, commerce, service industry, in general, the state allows each industry is the object of its loan support technology, but the various banking institutions in the selection of the loan object to choose, there is no significant difference at this stage.

Second, many factors affecting the performance of the bank, mainly: 1, the impact of the source of funds, also known as the deposit organization, the more deposits, the bank's available capital more the more, the more loans will be more, the better the performance, and vice versa, the worse. 2, the intermediate business, the bank develops the intermediate business products, the more, the higher the return, the better the results. In recent years, the performance of the bank is mainly created by the intermediate business. 3, non-performing assets affect the performance of the loan is released, not 100% can be recovered, so that the formation of non-performing loans, non-performing assets, which will bring losses to the bank. 4, the operating costs, administrative costs are also an important factor directly affecting the performance of the bank. There are many factors that affect the performance of banks, but the main ones are these big ones.

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What are the banks in Jiangsu?

Jiangsu currently *** there are nine listed banks, of which the city merchant banks are Bank of Jiangsu, Bank of Nanjing, Bank of Suzhou, and the agricultural merchant banks are Changshu Bank, Zijin Bank, Zhangjiagang Bank, Bank of Wuxi, Sunon Bank and Jiangyin Bank.

1. From the data disclosed in the annual report, of the nine A-share-listed banks in Jiangsu last year, seven performed steadily on the revenue side, while the other two saw negative growth in operating income. However, in terms of net attributable profit, all nine banks realized growth. (Blue Whale Finance according to the annual report, the same below) Specifically, as of the end of 2020, in the 9 banks, 5 banks in the net attributable profit recorded 4 point a few year-on-year growth, the Bank of Nanjing (9.70, -2.41%) net attributable profit growth rate is the fastest, amounting to 5.20%.

2. Changshu Bank (7.26, -1.89%) and Zijin Bank (3.21, 0.31%) recorded a net attributable profit growth rate of between 1% and 2%. As for operating income, two banks, Zijin Bank and Jiangyin Bank, saw year-on-year declines of 4.25% and 1.56% respectively last year, while the remaining seven banks all achieved good results. Bank of Jiangsu and Bank of Wuxi achieved double-digit growth in operating income, at 15.68% and 10.07% respectively. Bank of Suzhou followed with a 9.97 percent year-on-year growth in operating income.

3. Zijin Bank's operating income growth rate is at the bottom of the nine banks. However, Zijin Bank's net attributable profit still increased by 1.72% year-on-year, and the growth rate was even higher than that of Changshu Bank, which saw a 2.13% increase in revenue. An accounting practitioner told Blue Whale Finance: "Zijin Bank's net interest income declined, and net fee and commission income also declined sharply, but its net attributable profit still achieved growth, indicating that it has a more effective control of operating costs." In 2020, Zijin Bank's operating costs were 2.915 billion yuan, down 3.97% from the same period a year earlier. Reduced by 3.97%. Only one bank's non-performing loan ratio raised in asset quality, as of the end of 2020, nine banks' non-performing loan ratio indicators are not bad. Only Bank of Nanjing showed a slight increase, Changshu Bank and Zijin Bank's indicators were the same as the previous year, the remaining six had varying degrees of decline, Zhangjiagang Bank had the largest decline of 0.21 percentage points.

4. It is worth mentioning that the NPL ratios of all nine banks remained below 1.8%, with two of them below 1%. In terms of the provision coverage ratio indicator, three banks, Bank of Nanjing, Zijin Bank and Jiangyin Bank, experienced a decline, all within 35 percentage points. Bank of Suzhou and Bank of Wuxi, on the other hand, saw their provision coverage ratios rise considerably, both by about 67.7 percentage points. Bank of Nanjing explained the reasons for the rise in NPL ratio in its annual report: "The company has continuously optimized and adjusted its asset structure, and has continued to reduce the asset size of specific purpose vehicles managed by its consolidated subsidiaries for investment, as such business needs to be included in the consolidated statement of loan statistics according to the accounting calibre, which has led to the growth rate of the consolidated loan size being lower than the growth rate of the parent company's loan size, which has led to a slight increase in the consolidated NPL ratio of the company. The non-performing rate increased slightly, but the parent company's non-performing rate was the same as at the beginning of the year." It is worth noting that Bank of Nanjing is the only one of the nine banks that simultaneously saw an increase in its NPL ratio and a decrease in its provision coverage ratio, but in terms of specific data, as of the end of 2020, the bank's NPL ratio was still at the lowest of the nine banks, at 0.91%, although it had moved up by 0.02 percentage points. Similarly, the bank's provision coverage ratio of 391.76%, although 25.97 percentage points lower than at the end of 2019, remains relatively adequate for risk coverage. Total loan investment in the leasing and business services industry amounted to nearly 390 billion In terms of the structure of the industry investment of public loans, the leasing and business services industry, manufacturing industry, and wholesale and retail industry are three industries that are the key areas of public loans of the nine listed banks in Jiangsu. By organizing the distribution of the nine banks in the public loan investment in the top three industries can be seen, leasing and business services ranked in almost all banks in the public loan investment in the forefront (Changshu Bank's statistical caliber for the "construction and leasing services", put the loan of about 5.8 billion yuan), the total amount of nine banks in the industry's total loan investment nearly The total amount of loan investment in this industry by the nine banks is nearly 390 billion yuan. Among them, the amount of loans and the highest proportion of the total loans in this industry were all invested by Bank of Nanjing, which invested 170.6 billion yuan, accounting for 25.29%. Manufacturing, wholesale and retail trade are fully competitive industries, which are closely related to the economic cycle. In terms of the industry distribution of public loans, the manufacturing industry ranked the top three in the loan distribution of the remaining eight banks except Zijin Bank, to which the total amount of loans amounted to 352.1 billion yuan. And the wholesale and retail industry ranked the top three in the distribution of loans to the remaining seven banks except Bank of Jiangsu and Changshu Bank, with a total of 225.9 billion yuan of loans placed on them.

5. In view of the rapid development of Jiangsu's manufacturing industry, a number of banks have proposed to focus on advanced manufacturing. Bank of Jiangsu pointed out in its annual report, the bank's manufacturing loans in high-end manufacturing accounted for more than 40%. Zhangjiagang bank said in the annual report to "prioritize support for the real economy, especially the local key development, high-tech industries and high-end equipment and other advanced manufacturing." Bank of Suzhou also proposed to "help Suzhou manufacturing intelligent transformation".