论文部分内容阅读
The financial crisis is still haunting the world; the international banking giants are suffering depressed performance; and the Chinese economic growth is slowed while its entity economy meets difficulty… In spite of all those difficulties, the Chinese banks still get “unbelievable” huge profits.
According to the 2011 financial reports of those listed domestic banks in China, all of them had a 30% yearon-year growth in net profits last year. Some scholars said that the “extravagant profits” were not only much higher than the industry, but also above the monopolized industries like tobacco and petroleum.
For the source of profits in the banks – the loan-to-deposit interest rate spread, Prof. Sun Maohui from Shanghai Normal University, told CBF journalists that the regulatory department could require the banks to turn in part of their profits as the risk funds. But he also thought that the conditions for market-oriented interest rate have not been completely formed. The progress should be made based on the marketoriented benchmark interest rate formation.
Systematic Dividends based on Interest Spread
According to the statistical data from the Chinese Banking Regulatory Commission, the Chinese banking industry saw the accumulative profits of 817.3 billion yuan (USD 129.8 billion) in the first three quarters of 2011, up 35.4% from a year before. The amount of profits equaled the after-tax net profits of banks in the whole year of 2010. The average profit margin reached 22.1% while the profit per capita was close to 400 thousand yuan (USD 63.52 thousand)
The CBF journalist found from the statistics that seven Chinese banks listed in the stock exchange markets of Shenzhen and Shanghai had already published their business growth forecast report by February 13. Among them, Shenzhen Development Bank forecasted that its net profits could increase by 60%-70% in 2011. Minsheng Bank and Huaxia Bank both made the forecast about over 50% year-on-year increase of their net profits. SPD Bank, Everbright Bank and Industrial Bank respectively forecasted a 42.02%, 41.03% and 37.74% increase of their net profits in 2011. Nanjing Bank, a urban commercial bank, would have a 39% net profit increase in 2011.
A worker of a domestic shareholding banks told CBF journalists that they were given great salaries and bonuses last year. In the middle of 2011, each employee of this bank got the bonus of 100 thousand yuan (USD 15.9 thousand), in addition to the good year-end bonus. This worker is working for the department of issuing loans for smalland medium-sized banks. Because of the tight credit policy, her department saw larger profits than the other ones. “The banks earned such a huge amount of profits, making people feel like being robbed by us. The enterprises’profits are so low, forming a sharp contrast with the banks. Sometimes we are too ashamed to publish our financial reports,” Hong Qi, president of Minsheng Bank, said last December.
Prof. Sun Maohui from Shanghai Normal University said that the Chinese banks’ business had two major parts– the on-balance-sheet business, i.e. the deposit and credit, and the out-ofbalance-sheet business. The high profits mainly came from the loan-to-deposit interest rate spread. Presently, the interest rate of one-year deposit in China is 3.5% and the one for one-year credit is 6.56% - the interest rate spread reaches 3.06%, much higher than foreign financial institutions.
Qiu Zhicheng, a banking analyst from Guosen Securities, said that the net interest spread contributed approximately 80% of the revenue of the five major banks in China. In addition, the income from the net interest spread could account for 90% of the revenue of shareholding commercial banks.
Prof. Sun Maohui said that the high interest spread could be considered a kind of legal systematic profits provided by the government, instead of the banks’ deeds. Presently, the to- tal demand for capital is much larger than supply. Compared with the smallamount credit and folk loans, the bank loan’s interest rate is lower. Therefore profit from this field could be said to be reasonable. Furthermore, it is not right to compare the special banking industry with other ordinary industries in profits.
However, when the inflation rate in China exceeded 5% last year, the Chinese banks still kept their high interest spread, which led to the abnormally high profits. That’s why banks are severely blamed by outsiders. “The protection of high interest spread is actually a policy of subsidizing the banks by imposing tax on depositors,” said a senior executive of a shareholding bank.
A report issued by China International Capital Corporation Limited(CICC) on January 6 said that the “net interest spread is the largest unexpected thing”. According to the analysis, the central bank delivered the signal of loosening monetary policy through lowering the reserve requirement, which could lower the credit bargaining ability of banks. Against the background of European debt crisis and lasting real estate control in China, the economic growth will face greater stress in 2012. The slowed economic growth will deteriorate the risk appetite of banks and force them to choose safer clients. Thus the yield is lower. CICC’s report contained the opinion that the central bank would lower the reserve requirement four to six times this year and the newly-issued loans could reach 8 trillion yuan (USD 1.27 trillion). In addition, the inflation rate might drop and the lowering the interest rate is quite likely to happen in the second half of 2012. The report also forecasted that the average profit growth of listed banks could be 14.6%. Moreover, the local financing platform, loans for real estate and other fields with potential risks are considered the Sword of Damocles for the high profits of banks.
But Prof. Sun Maohui believed that the high interest spread would not be changed for a short while. The protection from interest spread provides the banks’ huge profits with systematic guarantee. It is also a hurdle for banks to improve their efficiency and services. Only when the protection is removed, the banking industry could be swayed to a competitive industry and the banks have impetus to launch some differentiated services to truly improve their competitive power and profit margin.
Prof. Sun suggested that the government should lower the proportion of disposable profits of the banks via some special policies. For example, it can ask the banks to turn in some profits as tax or risk fund to prevent the risks might happen to banks. Meanwhile take the asymmetrical way in increasing or lowering the interest rate. For example, apply slightly larger increase of deposit interest rate than the credit interest rate to gradually lower the loan-to-deposit interest rate spread.
Prof. Sun also said the more foreign banks should be allowed into the banking industry and private capital should be introduced into this industry to fill the banking industry with the competition. Ba Shusong, deputy director of the Financial Research Institute of the State Council’s Development Research Center, stressed that “it was not complete by only comparing the interest spread and the core point was to ease the control of financial market access”.
Push the Market-Oriented Benchmark Interest Rate
There is a growing appeal for putting an end to the “extravagant profits”of banks by reform of market-oriented interest rate is never gone.
Zhou Xiaochuan, president of the People’s Bank of China (central bank) said that the conditions for marketoriented interest rate were already available. After the large commercial banks’shareholding reform and going public, the problems like the soft restriction over financial institutions and the unfair competition are gradually solved and the reform of market-oriented reform could be further promoted.
Wu Xiaoling, deputy director of the Financial and Economic Commission of the National People’s Congress, said in a forum that the first step of setting up market-oriented interest rate is not to increase the upper limit of the deposit and credit interest rate, but to ease the market admittance for the financial institutions. In this year, the drop of interest rate for loans could be enlarged. Qiu Zhicheng from Guosen Securities said that the banks’ huge profits brought a lot of negative effect for the depositors. “The market-oriented interest rate was mentioned several years ago. But it has yet been done not because of immature conditions, but of the profits.”
In Prof. Sun Maohui’s opinion, the market-oriented interest rate is the trend but it is neither necessary nor possible for the change to be finished within five years. “If the reform is forcibly carried out, it might lead to the economic chaos, because the conditions of corporate system, economic structure and government administration are not matured.
According to Prof. Sun, the said market-oriented interest rate refers to the interest rate fixed by the complete competition between suppliers and demanders of capital instead of being fixed by the government. For a long period, the demand for capital is much larger than supply in China. Therefore the market-oriented interest rate cannot solve the problems of SMEs in financing. If it is carried out blindly, the economic phenomenon that “bad currencies drive out good currencies”might happen, hindering some enterprises with real development potential in raising capital and facilitating the enterprises based on risky speculation in getting capital by providing a higher profit margin. For example, now many banks get into the folk credit market via small-amount credit companies to earn profits through the interest spread between their loans and the small-amount credit companies’. This pricked up the difficulty for SMEs to raise capital.
In his opinion, the market-oriented interest rate advocated by the central bank should be based on the marketization of the formation system of benchmark interest rate. For example, the Shanghai Interbank Offered Rate (Shibor), which was carried out in 2007, is to be established as the main benchmark interest rate for pricing domestic and foreign RMB assets by 2015. The Interest Rate Future allows more market’s presence in the formation of reasonable benchmark interest rate. In addition, the pace of promoting the market-oriented interest rate of banking deposit should be eased instead of being pricked up because the higher interest rate is the only result of this action by now, which will lead to the move of residents’ deposit from one bank to another bank –no help for improving the efficiency of social resource allocation.
According to the 2011 financial reports of those listed domestic banks in China, all of them had a 30% yearon-year growth in net profits last year. Some scholars said that the “extravagant profits” were not only much higher than the industry, but also above the monopolized industries like tobacco and petroleum.
For the source of profits in the banks – the loan-to-deposit interest rate spread, Prof. Sun Maohui from Shanghai Normal University, told CBF journalists that the regulatory department could require the banks to turn in part of their profits as the risk funds. But he also thought that the conditions for market-oriented interest rate have not been completely formed. The progress should be made based on the marketoriented benchmark interest rate formation.
Systematic Dividends based on Interest Spread
According to the statistical data from the Chinese Banking Regulatory Commission, the Chinese banking industry saw the accumulative profits of 817.3 billion yuan (USD 129.8 billion) in the first three quarters of 2011, up 35.4% from a year before. The amount of profits equaled the after-tax net profits of banks in the whole year of 2010. The average profit margin reached 22.1% while the profit per capita was close to 400 thousand yuan (USD 63.52 thousand)
The CBF journalist found from the statistics that seven Chinese banks listed in the stock exchange markets of Shenzhen and Shanghai had already published their business growth forecast report by February 13. Among them, Shenzhen Development Bank forecasted that its net profits could increase by 60%-70% in 2011. Minsheng Bank and Huaxia Bank both made the forecast about over 50% year-on-year increase of their net profits. SPD Bank, Everbright Bank and Industrial Bank respectively forecasted a 42.02%, 41.03% and 37.74% increase of their net profits in 2011. Nanjing Bank, a urban commercial bank, would have a 39% net profit increase in 2011.
A worker of a domestic shareholding banks told CBF journalists that they were given great salaries and bonuses last year. In the middle of 2011, each employee of this bank got the bonus of 100 thousand yuan (USD 15.9 thousand), in addition to the good year-end bonus. This worker is working for the department of issuing loans for smalland medium-sized banks. Because of the tight credit policy, her department saw larger profits than the other ones. “The banks earned such a huge amount of profits, making people feel like being robbed by us. The enterprises’profits are so low, forming a sharp contrast with the banks. Sometimes we are too ashamed to publish our financial reports,” Hong Qi, president of Minsheng Bank, said last December.
Prof. Sun Maohui from Shanghai Normal University said that the Chinese banks’ business had two major parts– the on-balance-sheet business, i.e. the deposit and credit, and the out-ofbalance-sheet business. The high profits mainly came from the loan-to-deposit interest rate spread. Presently, the interest rate of one-year deposit in China is 3.5% and the one for one-year credit is 6.56% - the interest rate spread reaches 3.06%, much higher than foreign financial institutions.
Qiu Zhicheng, a banking analyst from Guosen Securities, said that the net interest spread contributed approximately 80% of the revenue of the five major banks in China. In addition, the income from the net interest spread could account for 90% of the revenue of shareholding commercial banks.
Prof. Sun Maohui said that the high interest spread could be considered a kind of legal systematic profits provided by the government, instead of the banks’ deeds. Presently, the to- tal demand for capital is much larger than supply. Compared with the smallamount credit and folk loans, the bank loan’s interest rate is lower. Therefore profit from this field could be said to be reasonable. Furthermore, it is not right to compare the special banking industry with other ordinary industries in profits.
However, when the inflation rate in China exceeded 5% last year, the Chinese banks still kept their high interest spread, which led to the abnormally high profits. That’s why banks are severely blamed by outsiders. “The protection of high interest spread is actually a policy of subsidizing the banks by imposing tax on depositors,” said a senior executive of a shareholding bank.
A report issued by China International Capital Corporation Limited(CICC) on January 6 said that the “net interest spread is the largest unexpected thing”. According to the analysis, the central bank delivered the signal of loosening monetary policy through lowering the reserve requirement, which could lower the credit bargaining ability of banks. Against the background of European debt crisis and lasting real estate control in China, the economic growth will face greater stress in 2012. The slowed economic growth will deteriorate the risk appetite of banks and force them to choose safer clients. Thus the yield is lower. CICC’s report contained the opinion that the central bank would lower the reserve requirement four to six times this year and the newly-issued loans could reach 8 trillion yuan (USD 1.27 trillion). In addition, the inflation rate might drop and the lowering the interest rate is quite likely to happen in the second half of 2012. The report also forecasted that the average profit growth of listed banks could be 14.6%. Moreover, the local financing platform, loans for real estate and other fields with potential risks are considered the Sword of Damocles for the high profits of banks.
But Prof. Sun Maohui believed that the high interest spread would not be changed for a short while. The protection from interest spread provides the banks’ huge profits with systematic guarantee. It is also a hurdle for banks to improve their efficiency and services. Only when the protection is removed, the banking industry could be swayed to a competitive industry and the banks have impetus to launch some differentiated services to truly improve their competitive power and profit margin.
Prof. Sun suggested that the government should lower the proportion of disposable profits of the banks via some special policies. For example, it can ask the banks to turn in some profits as tax or risk fund to prevent the risks might happen to banks. Meanwhile take the asymmetrical way in increasing or lowering the interest rate. For example, apply slightly larger increase of deposit interest rate than the credit interest rate to gradually lower the loan-to-deposit interest rate spread.
Prof. Sun also said the more foreign banks should be allowed into the banking industry and private capital should be introduced into this industry to fill the banking industry with the competition. Ba Shusong, deputy director of the Financial Research Institute of the State Council’s Development Research Center, stressed that “it was not complete by only comparing the interest spread and the core point was to ease the control of financial market access”.
Push the Market-Oriented Benchmark Interest Rate
There is a growing appeal for putting an end to the “extravagant profits”of banks by reform of market-oriented interest rate is never gone.
Zhou Xiaochuan, president of the People’s Bank of China (central bank) said that the conditions for marketoriented interest rate were already available. After the large commercial banks’shareholding reform and going public, the problems like the soft restriction over financial institutions and the unfair competition are gradually solved and the reform of market-oriented reform could be further promoted.
Wu Xiaoling, deputy director of the Financial and Economic Commission of the National People’s Congress, said in a forum that the first step of setting up market-oriented interest rate is not to increase the upper limit of the deposit and credit interest rate, but to ease the market admittance for the financial institutions. In this year, the drop of interest rate for loans could be enlarged. Qiu Zhicheng from Guosen Securities said that the banks’ huge profits brought a lot of negative effect for the depositors. “The market-oriented interest rate was mentioned several years ago. But it has yet been done not because of immature conditions, but of the profits.”
In Prof. Sun Maohui’s opinion, the market-oriented interest rate is the trend but it is neither necessary nor possible for the change to be finished within five years. “If the reform is forcibly carried out, it might lead to the economic chaos, because the conditions of corporate system, economic structure and government administration are not matured.
According to Prof. Sun, the said market-oriented interest rate refers to the interest rate fixed by the complete competition between suppliers and demanders of capital instead of being fixed by the government. For a long period, the demand for capital is much larger than supply in China. Therefore the market-oriented interest rate cannot solve the problems of SMEs in financing. If it is carried out blindly, the economic phenomenon that “bad currencies drive out good currencies”might happen, hindering some enterprises with real development potential in raising capital and facilitating the enterprises based on risky speculation in getting capital by providing a higher profit margin. For example, now many banks get into the folk credit market via small-amount credit companies to earn profits through the interest spread between their loans and the small-amount credit companies’. This pricked up the difficulty for SMEs to raise capital.
In his opinion, the market-oriented interest rate advocated by the central bank should be based on the marketization of the formation system of benchmark interest rate. For example, the Shanghai Interbank Offered Rate (Shibor), which was carried out in 2007, is to be established as the main benchmark interest rate for pricing domestic and foreign RMB assets by 2015. The Interest Rate Future allows more market’s presence in the formation of reasonable benchmark interest rate. In addition, the pace of promoting the market-oriented interest rate of banking deposit should be eased instead of being pricked up because the higher interest rate is the only result of this action by now, which will lead to the move of residents’ deposit from one bank to another bank –no help for improving the efficiency of social resource allocation.