financing platform provision for a loan

Provision for local financing platform loans or cause bank performance decrease

In everbright etc three Banks beautiful letters, also have appeared to express some of the researcher statistical way puts forward his own ideas, and the most concentrated belong to sharply provision for local .

December 2010, CBRC issued the China banking regulatory commission (CBRC) about strengthening local financing platform loan risk management guiding opinions on the platform, delimit scale, loan classification standards and corresponding risk weights. The opinion "says, financial institutions should be considered local government debt burden and financing platform loan itself potential risk and expected loss, reasonable provision for loan losses preparation and assure loan losses preparation will cover financing platform of loan potential losses. Financial institutions financing platform of loan provision coverage and loan provision rate shall not be lower than the general loan provision level. According to media reports, preliminary included in the platform are expected to bad loans in 160 billion yuan, the future 2-3 years of listed bank annual net profit affecting about 5%.

However, in this triplet disclosed bank letters, according to the calculation, the actual cost of credit miniscule, provision level and did not reflect CBRC "opinions" policy information and more stringent provision requirements.

LiShuangWu thinks, three Banks are not greatly due to occur, seem to also will provision in a certain degree cannot reflect the real performance. Due to express disclosure period and annals disclosure time there is a certain distance, during this period, the bank have mandatory policies and increasing the local financing platform loan provision. "This possibility will have," he insisted.