After the international financial crisis, all countries are strengthening the supervision of commercial banks. Although the regulatory authorities plan to raise the provision ratio of commercial banks to 2.5% on 20 1 1, they still need to communicate with the Ministry of Finance and banks, and then determine the specific value of the provision ratio after fully considering the actual situation of China's banking industry.

The lower the ratio, the better. The smaller the reaction loss, the higher the profit. The higher the ratio, the greater the risk, the greater the loss and the smaller the profit. The level of provision ratio should be adapted to the degree of loan risk, and it should not be too low to lead to insufficient provision and inflated profits; Nor should it be too high, resulting in excess provision and a virtual decline in profits. This indicator reflects the risk degree of bank loans, socio-economic environment, integrity and other aspects from a macro perspective.

The possible bad debts and bad debt provision for bank loans is an aspect of bank's careful screening and risk prevention, and also a quantitative indicator reflecting the authenticity of performance.

According to the data of the semi-annual report, as of the end of June, the provisions of ICBC, Agricultural Bank of China, Bank of China, China Construction Bank and Bank of Communications accounted for 2.39%, 3. 15%, 2.26%, 2.49% and 1.97% respectively, and only Agricultural Bank of China was higher than 2.5%. Among the small and medium-sized listed banks, except Huaxia Bank and Nanjing Bank, the proportions are 2.49% and 2. 15%, all other banks are below 2%, and Industrial Bank is only 1.37%.