news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

On the 21st, the State Council Information Office held a series of press conferences on "Promoting High-quality Development". Xiao Yuanqi, Deputy Director of the State Financial Supervision and Administration, and heads of major departments and bureaus responded to many hot issues such as the slowdown in banking profit growth, reform and risk reduction of small and medium-sized financial institutions, the latest progress of the real estate financing coordination mechanism, and financial consumer protection.

According to the relevant person in charge, the slowdown in the growth of banking industry profits is mainly affected by the narrowing of net interest margins; the reform and risk reduction of small and medium-sized financial institutions will not be "one size fits all"; since the establishment of the real estate financing coordination mechanism, the "white list" projects have been approved for financing of nearly 1.4 trillion yuan.

The narrowing of net interest margin affects the growth rate of banking industry profits

In the first half of the year, the net profit growth rate of large banks and private banks was negative, which attracted market attention.

Data on the main regulatory indicators of the banking industry in the second quarter of 2024 released by the Financial Supervision Administration show that in the first half of the year, commercial banks achieved a cumulative net profit of 1.3 trillion yuan, a year-on-year increase of 0.4%, and the growth rate slowed down (the growth in the first quarter was 0.7%). Among them, the net profits of large banks and private banks both declined year-on-year, with growth rates of -2.87% and -1.94% respectively.

In this regard, Liao Yuanyuan, director of the Statistics and Risk Monitoring Department of the State Financial Regulatory Administration, pointed out that in recent years, the growth rate of net profit of Chinese commercial banks has continued to slow down, mainly due to the continuous decline in loan interest rates and the continuous narrowing of net interest margins.

From January to July this year, the average interest rate of newly issued corporate loans by banks fell by 39 basis points compared with the same period last year, and fell by more than 100 basis points from the previous high point in 2021. In the first half of the year, the net interest margin of commercial banks was 1.54%, a year-on-year decrease of 19 basis points and a decrease of more than 50 basis points from the previous high point.