Commercial banks: Optimize the allocation of credit resources and provide high-quality financial services

The Third Plenary Session of the 20th Central Committee of the Communist Party of China (CPC) is an important meeting held at a critical period when the building of a strong country and the great cause of national rejuvenation are being comprehensively promoted through Chinese-style modernization. The meeting deliberated and adopted the "Decision of the Central Committee of the Communist Party of China on Further Deepening Reform and Promoting Chinese-style Modernization" (hereinafter referred to as the "Decision"), which provides guidance for the current and future business development ideas of banking financial institutions.

After the conclusion of the plenary session, the party committees of various banks conveyed the spirit of the plenary meeting in various forms at the first time, and made research and deployment for the key work in the next stage.

Improve the efficiency of the use of funds

The "Decision" proposes to focus on the implementation of national development plans and major strategies to promote the coordinated efforts of fiscal, monetary, industrial, price, employment and other policies, and optimize the allocation of various incremental resources and the adjustment of stock structure.

"Optimizing the adjustment of various stock structures is conducive to revitalizing resource assets." Luo Zhiheng, chief economist of Yuekai Securities, said.

Banking financial institutions are no strangers to optimizing the allocation of incremental resources and adjusting the stock structure. Optimizing the increment, revitalizing the stock, and improving the efficiency of capital use are important starting points for the current banking financial institutions to improve the quality and efficiency of serving the real economy.

In fact, the People's Bank of China and other financial management departments have always attached great importance to the efficiency of the use of credit funds in the banking industry. On June 25, the Monetary Policy Committee of the People's Bank of China held a regular meeting for the second quarter of 2024, once again emphasizing the need to improve the efficiency of capital use.

At this stage, there are new changes in the field of social financing in the mainland, that is, the growth of credit has changed from a supply constraint to a demand constraint, which requires banking financial institutions to recognize and adapt to this change in a timely manner, abandon the "scale complex" of credit delivery, and shift the focus to adjusting and optimizing the credit structure, revitalizing the financial resources occupied by inefficiency, and reducing the idling and precipitation of funds.

The Financial Times reporter noted that improving the efficiency of the use of funds has become one of the key tasks of banking financial institutions.

On July 19, the Party Committee of China Construction Bank (CCB) clearly stated at the special meeting held to convey and study the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China that it is necessary to establish a correct outlook on operation, performance and risk, abandon the "scale complex" and "speed impulse", make overall plans to balance the total amount and structure, scale and efficiency, short-term and long-term, local and global, development and security, and improve the quality of assets, liabilities, capital quality, income and cost.

Industry experts generally believe that with the joint efforts of financial management departments and banking financial institutions, with the recovery of effective demand and the improvement of social expectations, the efficiency of capital turnover will be further improved. "Even if monetary aggregate growth is likely to slow down, there is no need to worry about less financial support for the real economy. On the contrary, financial support for the real economy will be more practical and efficient, financial resources will better flow to efficient enterprises, enhance support for high-quality economic development, and further improve the quality and efficiency of the financial system in serving the real economy. Wen Bin, chief economist of China Minsheng Bank, said.

Do a good job in five big articles on finance

Doing a good job in the five major articles of finance is an important focus of financial services for the real economy. To do a good job in the five major articles of finance, it is necessary to continue to deepen the structural reform of the financial supply side, and accelerate the formation of a financial institution system and financial product system that are compatible with the five major articles of service finance.

Industry experts said that the "decision" emphasizes the active development of science and technology finance, green finance, inclusive finance, pension finance, digital finance, strengthen the major strategies, key areas, weak links of high-quality financial services, and at the same time proposed to improve the positioning and governance of financial institutions, improve the incentive and restraint mechanism to serve the real economy, which shows that through the financial market system, financial institution system, financial products and service system and other structural adjustments, can promote the balanced development of the real economy, better serve the five major articles of finance, Serve major strategies, focus areas and weak links.

It is the general consensus of banking financial institutions to do a good job in five major articles of finance with high-quality services. On the afternoon of July 19, at the special party committee held to convey and study the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China, ABC emphasized that it should focus on cultivating and expanding key areas and weak links such as new quality productivity, five major articles on finance, major regional strategies, and people's livelihood security, and continue to increase financial support to help high-quality economic and social development.

While each bank focuses on different aspects of the division of labor and makes targeted efforts in the five major articles of finance, the construction of a financial institution system with division of labor and cooperation also requires the joint participation of all banks.

The financial institution system of division of labor and cooperation needs to strengthen the role of large commercial banks as the main force, deepen the reform of policy-oriented banks, promote the return of small and medium-sized banks to their origins and main businesses, and promote all kinds of financial institutions to be more reasonable in terms of scale, structure and regional layout.

When the Postal Savings Bank held an enlarged meeting of the Party Committee to convey and study the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China, it made it clear that it would closely follow the primary task of high-quality development, take capacity building as the foundation, innovation and reform as the driving force, and refined management as the guarantee, continuously enhance core functions, improve core competitiveness, and strive to build differentiated competitive advantages.

Build a strong international financial center

Speeding up the construction of Shanghai as an international financial center is a clear task set forth in the "Decision", which also continues the requirement of "enhancing the competitiveness and influence of Shanghai as an international financial center" put forward by the Central Financial Work Conference last year.

To achieve the goal of becoming a financial powerhouse, it is essential to have a strong international financial center. At the 2024 Lujiazui Forum, Chen Jining, Secretary of the Shanghai Municipal Party Committee, said that Shanghai will continue to play its role as a test field for financial reform, better test the system for the country, explore new paths, and make up for shortcomings, solidly promote high-quality financial development, continue to enhance the competitiveness and influence of international financial centers, and give full play to its leading and exemplary role in promoting Chinese-style modernization.

Shanghai is the frontier window of the mainland's reform and opening up, and it is also a banner for the mainland to build a strong international financial center. Through years of development, the development pattern of Shanghai's financial market has become increasingly perfect, and various national financial markets and financial infrastructure have gathered.

Supporting the upgrading of Shanghai's international financial center and accelerating the construction of a strong international financial center is also the common vision of the financial management department and banking financial institutions, especially the banking financial institutions in Shanghai.

Focusing on this goal, Bank of Communications proposed to continue to strengthen Shanghai's home field and fully integrate into and serve the construction of the "five centers" such as the Shanghai International Financial Center at the enlarged meeting of the Party Committee to convey and learn the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China.

"Bank of Communications has written the 'home construction of Shanghai' into the group's development strategy, and consciously integrated its own development into Shanghai's economic and social development. In the next step, Bank of Communications will comprehensively coordinate the resources of the Group, give full play to the advantages of integrated operation and global services, and inject new momentum into the construction of Shanghai as an international financial center. Ren Deqi, Secretary of the Party Committee and Chairman of the Bank of Communications, said.

Shanghai Pudong Development Bank, also headquartered in Shanghai, has made full use of its geographical advantages in the process of development, deepened high-level reform and opening up, and continuously helped Shanghai participate in global economic governance and international financial cooperation while promoting high-quality economic and social development and its own high-quality development.

"The construction of an international financial center needs to match the global layout and international competitiveness. Financial institutions in Shanghai should seize the opportunity of deepening reform and opening up, and further play the role of a bridge around major strategic deployments such as the Belt and Road Initiative and regional opening up and cooperation. Zhang Weizhong, Secretary of the Party Committee and Chairman of Shanghai Pudong Development Bank, said.

Source: Financial Times-China Financial News Network