Banks are not allowed to collect profits

                                                                                    INQUIRY

      On September 26, the official website of the Ministry of Finance showed that in order to adapt to the deepening reform and development of the financial system, prevent and resolve financial risks, and strengthen financial management of financial enterprises, the Ministry of Finance revised the Financial Rules of Financial Enterprises (hereinafter referred to as Decree 42) and formed the Financial Rules of Financial Enterprises (draft for comments). ( Comparing with the current regulations, the draft of soliciting opinions has increased budgetary management, capital management, investment management, assessment and evaluation, and the original contents have also been greatly adjusted. Especially in order to truly reflect the operating results of financial enterprises and prevent financial enterprises from using reserves to regulate profits, the market has paid great attention to the regulation of large excess reserves.
The following are the main points of analysis prepared by Times Jun:
In the draft of soliciting opinions, the most important concern of the market is to restrain financial institutions from excessively raising the reserve coverage in order to hide profits. At present, the basic standard of reserve coverage is 150%. For more than twice the regulatory requirements, it should be considered that there is a tendency to hide profits.
Performance data for the first half of 2019 show that there are about 10 banks with reserve coverage of more than 300%, including 6 A shares and 4 Hong Kong shares.
Banks can not regard it as a completely negative behavior to regulate profits by using reserve coverage; when banks increase bad write-offs, it will lead to a passive increase in reserve coverage.
The reserve coverage of excess allowance is reduced to undistributed profits, which will help to increase the profit growth rate of banks in the short term.
In the long run, the coverage of allowances has little effect on the dividend distribution of banks, and the impact on tax burden is limited and indirect.
This policy helps banks to increase the exposure of real non-performing assets.


INQUIRY sales@hellerbearings.com
  • Details： Banks are not allowed to collect profits

  • Like Model No.:

  • We cooperate with UPS,TNT,FEDEX,EMS,DHL,etc.They guarantee to meet your needs in terms of time and money,even if you need your Banks are not allowed to collect profits bearing tomorrow morning (aka overnight or next day air) on your desk, 2, 3 days or more.Note to international customers, YES, we ship worldwide. INQUIRY -->

    Hot Model No.: