Liu Mingkang pointed out that leading comrades in the State Council attached great importance to the problem of non-performing loans, and made important instructions on many occasions, asking banking supervision departments and banks to strengthen the supervision and assessment of non-performing loans and strive to improve the quality of loans. To this end, the banking supervision department and four state-owned commercial banks have actively implemented the State Council's requirements on strengthening supervision and preventing risks, and adopted a series of new ideas, methods and measures. The management and assessment of non-performing loans have achieved initial results from theory to supervision practice.
Liu Mingkang pointed out that establishing a correct business philosophy is the key to the management of non-performing loans. For a long time in the past, some of our commercial banks only paid attention to the speed of development and the expansion of scale, and unilaterally pursued the scale of assets and liabilities and market share, regardless of the cost of risk, which eventually led to a large accumulation of non-performing loans. Therefore, commercial banks must establish a Scientific Outlook on Development, take scientific business philosophy as a guide, and strengthen risk control according to "accurate classification-adequate provision-real profit-improving capital adequacy ratio" to realize the sustainable development of commercial banks.
Liu Mingkang demanded that all banks should conscientiously sum up and draw lessons, further strengthen loan management and establish a good credit culture. At present, banks should improve and establish a scientific assessment mechanism for loans and non-performing loans, implement the requirements of the Due Diligence Guidelines for Credit Granting of Commercial Banks issued by CBRC, strengthen management and continuously improve the quality of loans.
China Banking Regulatory Commission (CBRC) put forward specific requirements for the next step of non-performing loans of four banks. One is to change ideas and raise awareness. The improvement of asset quality is an important goal of the reform of state-owned commercial banks, and it is also one of the important signs to test the effectiveness of bank reform. All banks should attach great importance to the problem of non-performing loans, and further do a good job in the management and supervision of non-performing loans in accordance with the requirements of "the orientation of the double-reduction work is not deviated, the determination is not shaken, and the intensity is not weakened". The second is to strengthen loan management and prevent the rebound of non-performing loans. On the basis of doing a good job in reform, all banks should further improve internal control and do a good job in case prevention, especially strengthen the management of branches, establish a scientific, reasonable and effective risk management mechanism covering all businesses, strengthen the construction and supervision of credit due diligence system, strive to improve the quality of new loans and curb the rebound of non-performing loans. The third is to increase the write-off and collection of non-performing loans. Banks should improve the relevant verification methods and procedures as soon as possible, and formulate a clear responsibility system for collection. We should do more work in write-off and collection, win the support of relevant departments and local governments, and strive to complete the disposal plan of non-performing assets. We should also strengthen the management of the loans that have been written off, so as to ensure that the accounts are written off, the cases are kept and the rights are in place. Fourth, the system of loan provision write-off shall be strictly enforced, and the year-end profits of all banks shall be realized. In order to establish a scientific risk management culture, strictly classify loans into five categories, and make full provision in time according to the risk situation, we must abandon the past practices, never make false profits, and form a good circulation mechanism in preventing risks.