Investigation on 20billion steel trade loans in Wuxi: Bank of communications was the most deeply involved in it
according to the financial weekly, the shadow of Wuxi steel trade circle has not disappeared since last year, and the quality of bank loans involved has naturally become the focus of attention
in the second half of 2012, some media reported that "the bank loans involved in Wuxi steel trade industry reached more than 20 billion, and Bank of communications accounted for half", and said that most of the loans would expire in the fourth quarter
"at the end of the year, when the bank collects accounts, more steel trading enterprises will have problems." Said a banker in Shanghai
now that 2013 has entered, what is the status of these steel related loans? How did the Bank of communications, which was deeply involved, handle the relevant loans? Therefore, the financial weekly came to Wuxi to try to find out
talk about "steel" color change
according to previous understanding, BOCOM involved more than 10 billion steel trade loans, most of which were due in the fourth quarter of last year. So how many overdue loans are there among the more than 10 billion steel related loans? How to deal with overdue loans? What is the proportion of non-performing products
in response to the above questions, I came to Wuxi Branch of Bank of communications to ask about the situation. The branch said, "the topic of steel trade is sensitive, and the head office has also issued relevant regulations. If there are media interviews on steel trade, our unified standard is that the corporate culture department of the head office is responsible for it."
then contacted the corporate culture Department of the head office of Bank of communications, "as a listed company, the four seasons report hasn't come out yet, and the relevant data can't be given to you."
another relevant person from Wuxi Branch of Bank of communications told, "the head office has set up a working group related to steel trade to guide the processing of steel trade loans in various regions. The head office should be more clear about many specific business data."
all branches of the local bank of communications in Wuxi also kept this topic under wraps and were reluctant to talk about it more, said the vice president of the first branch, "I can only say that the situation is not very ideal, but it is not as serious as expected. The more than 10 billion steel related loans you mentioned do not mean more than 10 billion non-performing loans. Not all the steel trade bosses in Wuxi have run away. You can see that there are many enterprises in the nearby steel market that are maintaining their operations. We have not blindly taken out loans for these enterprises, and many of them can slow down."
"our general strategy for steel trade loans during this period is to 'control the total amount, strengthen and reduce', and try to solve it by means of re lending. For the overdue loans of running enterprises, the guarantee company returned some, and we also recovered some through legal channels."
according to the local court, since August last year, the number of lawsuits between bocom and the local government has increased. Most of them are directly filed by Wuxi Branch, such as Wuxi Daxia metal materials Co., Ltd., Wuxi Heda storage Co., Ltd., Shanghai COSCO Logistics Distribution Co., Ltd. "Bank lawsuits against steel trading enterprises have indeed accounted for the majority."
why is Bank of communications involved in the steel market in Xihu Road, Chong'an District, Wuxi City? This is the earliest steel market in Wuxi City. Across the road is Bank of communications Chengdong sub branch, next to which is Wuxi zhongchu logistics company
it is understood that Chengdong sub branch, Donglin sub branch and sub branch used to be sub branches with more steel trade loans. Including the sub branches next to Jiangyin steel city, they have also done more business
Bank of communications Wuxi Branch was reorganized in October, 1987 and upgraded to a directly subordinate branch in February, 1999. After more than 20 years of development, the layout of institutional sites has become increasingly perfect. At present, there are 51 business sites. Among them, there are 1 branch business department, 2 non local sub branches, 12 urban level-1 sub branches, 23 directly subordinate sub branches and 13 level-2 sub branches. The bank now has more than 1250 employees
in the local area, compared with other large state-owned banks, there are not many 51 branches of Bank of communications. From the point of view, there are 118 branches of Bank of China, 126 branches of Agricultural Bank of China, 73 branches of industrial and Commercial Bank of China and at least 30 branches of China Construction bank
but a little does not mean that there is no local advantage. "Different from other large banks, Wuxi Branch of Bank of communications is a branch directly under the Bank of communications, which directly reports to the head office of Bank of communications. Therefore, some loan lines and efforts are relatively large, and they also have advantages in doing so." A person from a local large state-owned bank branch told us that the branch is a tier-2 branch in the head office system, and usually reports to Jiangsu Province 2. Correctly install the branch on the stable root or workbench, and the provincial branch approves the loan limit, etc
it is understood that "in the past few years, BOCOM has given great support to the local steel trade industry, and its profits are also very considerable. Wuxi Branch once had a high performance in the branches where the National Bank of communications could use resin as spare parts in turn."
at present, only the Bank of communications and China Construction Bank have deep involvement in the field of steel trade in Wuxi, while the local involvement of the Bank of communications in this area is even far greater than that of Minsheng, Everbright and China Merchants Bank, which have more steel related loans, which is puzzling
however, the steel trade loans involved by bocom are not particularly large-scale enterprises. "The total quantity is quite a lot, but the single quantity is not much." A local branch official told us, "the steel trade loan of BOCOM belongs to retail credit, and the amount is not too large, so it is put in the retail business."
this is also one of the reasons why Bank of communications is involved in more loans in Wuxi steel trade. "A large number of steel trade loans catch up with the opportunity of Bank of Communications' retail bank transformation and increase the development of retail business. This step is relatively open."
the non-performing rate of BOCOM will rise significantly
according to the financial weekly report, the steel trade loans with small scale and large total amount are just the "personal loans" and "loans for small and medium-sized enterprises" that bocom focuses on
when the steel trade industry was booming in the previous two years, it naturally increased its efforts
in recent years, in terms of deposit and loan business, Bank of communications has always adhered to the adjustment direction of "three high and three low", supported the central and western regions, personal loans and loans to small, medium and micro enterprises, and controlled the government financing platform, real estate and "two high and one surplus" industry loans
according to the data of the third quarterly report, the balance of personal loans of Bank of communications accounted for 19.99%, an increase of 0.11 percentage points over the beginning of the year; The loan balance of small, medium and micro enterprises accounted for 40.78%, an increase of 1.39 percentage points over the beginning of the year
according to the third quarter report of 2012, the balance of non-performing loans of Bank of communications in the first three quarters was 24.8 billion yuan, and the non-performing loan ratio was 0.87%. It is the only one of the five major banks with a "double rise" trend
the international rating agency Standard & Poor's recently released a report. It is expected that the non-performing loan ratio of Bank of communications without additional processing steps in the future will increase significantly compared with 0.87% at the end of September 2012, which is mainly dragged down by the risk exposure of export related loans and local government platform financing projects
the Bank of communications does not think so, and has always emphasized that the risk is controllable
yangdongping, chief risk officer of Bank of communications, pointed out at the performance conference of the third quarter of 2012, "from the perspective of industry, non-performing loans are mainly concentrated in the wholesale and retail industries. From the perspective of region, they are mainly concentrated in East China, especially in Jiangsu and Zhejiang provinces." However, he said that the concentration of non-performing loans in industries and regions is conducive to risk control. He also predicted that if China's economic fundamentals do not improve, the level of non-performing loans will still rise, but the risk is controllable. "