Part One: Complete Financial Knowledge of Banking Department!

1. What are deposit reserve ratio and reserve requirement ratio?

The deposit reserve ratio is an important monetary policy tool of the central bank. By law, commercial banks are required to deposit a certain percentage of their deposits with the central bank. By adjusting the deposit reserve ratio of commercial banks, the central bank achieves the purpose of controlling the base currency and thereby regulating the money supply. The People's Bank of China has canceled the requirement for the reserve ratio of commercial banks and merged the original deposit reserve ratio and reserve ratio into one. At present, reserves refer to the portion of deposits of commercial banks with the central bank that exceed the deposit reserve ratio, generally called excess reserves.

2. What is money supply?

Money supply refers to the total amount of money in circulation in an economy at a certain point in time. Since many financial instruments have the function of currency, there are narrow and broad definitions of currency. If currency only refers to cash in circulation, it is called M0; in a narrow sense, currency M1 refers to cash in circulation plus bank demand deposits. The demand deposits here only refer to corporate demand deposits; while broad money M2 refers to M1 plus resident savings deposits and corporate time deposits. Money supply is an important monetary policy operational target of the central bank.

3. What is "passive foreign exchange purchase by the central bank"?

According to the current arrangements for the foreign exchange settlement and sales system, enterprises should sell foreign exchange earnings to designated foreign exchange banks, and designated foreign exchange banks must sell foreign exchange purchases exceeding a certain amount in the inter-bank foreign exchange market. If an enterprise needs to purchase foreign exchange, it needs to go to a designated foreign exchange bank to purchase with corresponding certification documents. Correspondingly, when the foreign exchange is insufficient, the designated foreign exchange bank will buy it on the inter-bank foreign exchange market. Since my country implements a managed floating exchange rate system, the exchange rate needs to be maintained at a relatively stable level. Therefore, once a balance of payments surplus occurs and the supply of foreign exchange increases, while maintaining exchange rate stability, the central bank has to passively buy foreign exchange and sell RMB in the interbank foreign exchange market, that is, spit out base currency.

4. What is loan migration analysis or credit risk migration analysis?

Loan migration analysis or credit risk migration analysis is a new credit risk analysis method based on probability analysis that has emerged in recent years. It uses historical loan loss data to estimate the proportion of loan losses in a bank's current loan portfolio to determine whether loan loss provisions are sufficient. Generally speaking, there are four main steps in loan migration analysis:

1. Group loan portfolios according to loan types or risk categories. For example, loans can be divided into normal, special mention, substandard, and doubtful, and loans can also be divided into categories such as real estate loans, secured loans, credit loans, and automobile consumer loans. This is mainly because different types of loans have different loss histories.

2. Determine the loss rate of each category of loans. For example, the loss of special mention loans in the fourth quarter is 2%;

3. Analyze the factors affecting changes in the loan loss rate and adjust the existing loss rate ;

4. Multiply the adjusted loss rate by the amount of each category of loans in the current quarter to obtain the amount of losses on each category of loans.

To conduct loan migration analysis, at least four consecutive quarters of loan loss data are required. The premise of loan migration analysis is that there must be an effective problem loan identification system, accurate loan classification and loan loss write-off system. Otherwise, the quality of loan migration analysis cannot be guaranteed.

5. What is the prudent bank capital supervision idea advocated by the China Banking Regulatory Commission?

Improving the capital adequacy ratio of commercial banks and prompting them to set aside sufficient loan loss reserves is an important means for commercial banks to cope with macroeconomic fluctuations. It is also an important means to implement the China Banking Regulatory Commission’s "Manage legal persons, manage internal controls, and manage risks." , improve transparency” regulatory concept.

The idea of ??prudent bank capital supervision is to first improve the accuracy of the five-level classification of commercial bank loans. On this basis, commercial banks should set aside sufficient loan loss reserves to more truly reflect the bank's operating results, and then enable commercial banks to The capital adequacy ratio reaches the prescribed standards. That is, "improve the accuracy of the five-level classification of loans, raise sufficient provisions, make profits, and meet the capital adequacy ratio."