Pan Gongsheng, president of the People's Bank of China, emphasized that when necessary, the central bank will provide emergency liquidity support for relatively heavy debt burdens, highlighting Beijing's attention to this issue.
Comprehensive Bloomberg and Securities Times reported that Pan Gongsheng said on Wednesday (November 8) at the annual meeting of the Financial Street Forum held in Beijing that this year's financial department has taken multiple measures with relevant departments to actively support supportLocal governments have solved the risk of debt steadily, and said that the overall level of debt of the Chinese government is at the bottom level of the midstream.
He emphasized that the central bank will also provide emergency liquidity support for relatively heavy debt burdens when necessary.
Pan Gongsheng also mentioned that the proportion of Chinese high -risk financial institutions in the financial system is very small in terms of quantity and asset scale.After recent years of reform, the number of high -risk small and medium -sized banks has fallen by half compared to its peak.A small number of high -risk institutions are developing and implementing the implementation of the reform insurance plan for small and medium -sized banks to supplement capital.
At the CPC Central Committee Financial Work Conference held last month, Chinese officials said that they would establish a long -term mechanism for preventing and resolving local debt risks, and mentioned to optimize the central and local government debt structures.
In the past year, China requires large banks to participate in providing credit support to the trapped developers and local governments financing platforms. They bear the debt burden of $ 9 trillion (about S $ 12.2 trillion).Banking's duties may affect its profit margin.
S & P released a research report last month stating that in an unfavorable situation, the restructuring of urban investment debt may cause 220 trillion yuan (about 410 billion yuan) in capital of Chinese banks.One -fifth of the regional bank's capital adequacy ratio may fall to the following regulatory requirements.
In the report of last month, Fitch pointed out that local governments can require local asset management companies to help acquire bad debts, but the weak financial local governments will face increasing challenges in controlling risks.It is also said that the government may take "more unconventional methods" to respond to the quality pressure of the bank's assets.
