By September 2005, 325 foreign financial institutions had set up 238 business offices in China. Among them, 138 companies can start RMB business, 15 companies are allowed to start online banking business, 4 1 companies are allowed to handle derivatives business and 5 companies are allowed to conduct QFII business. At present, 25 cities have opened RMB business. Even so, foreign banks are still constrained by the lack of outlets, and they choose to invest in Chinese banks to seize the commanding heights of the China market. At present, in addition to the overseas strategic investors introduced by the four major state-owned commercial banks, HSBC, Citigroup, Germany and Standard Chartered have also invested in joint-stock banks such as Communications, Shanghai Pudong Development Bank, Huaxia Bank and Bohai Bank. Foreign banks not only gain brand resources, network resources, customer resources, etc. , but also get huge profits.
Foreign banks have a clear market positioning in their operations, and mainly focus their product resources on serving selected customer groups, while Chinese banks generally provide services for all walks of life, and their product resources are scattered. If this development continues, it will either lose the service advantage of the high-quality customer base locked by foreign banks, thus losing customers, or the overall return on resource use will be reduced and the long-term competitiveness will be lost.
The competitive environment largely determines the driving force of banking business transformation and income structure optimization. Since 1948, the scale of China's banking industry has changed greatly. The number of banks has grown from 1 of the People's Bank of China to 16 national commercial banks, 2 policy banks, 1 17 city commercial banks and more than 50,000 rural credit cooperatives. The total assets of the bank are nearly 1 trillion yuan from the beginning. Coupled with the entry of foreign banks, many banks find it increasingly difficult to make a living by relying on the homogeneous business model and relatively single income structure.
In addition to passively accepting the challenge, banks in China began to take the initiative to enter the international capital market to meet the challenge. Bank of China plans to go public in Hong Kong in early June this year, raising about $6 billion. This will be the second four state-owned commercial banks listed overseas in the Mainland. Previously, China Construction Bank was listed in Hongkong in June, 2006, raising 8 billion US dollars, which was the largest initial public offering in the world since June, 2006, with 5438+0. Apart from BOC, ICBC, the largest commercial bank in the mainland, may go public in Hong Kong in September, and China Merchants Bank and Minsheng Bank also intend to land in the Hong Kong market this year.
Faced with the severe problems of sustained growth in shareholder value and long-term excellent asset quality, Jiang Jianqing, president of China Industrial and Commercial Bank, pointed out at the Bankers' Forum in 2005 (China) that through reorganization, every asset of a commercial bank should be profit-centered, every liability should be cost-centered, every investment should be return-centered, every input and output should be innovative, and every outlet should be profit-centered.
China Commercial Bank will experience the test of the international market and move from domestic banks to international banks.
Facing the challenge of foreign banks, Chinese banks are not only facing the problem of development, but also facing the problem of life and death. Business innovation has become the foundation for the survival and development of banks, and the transformation of banks is imperative.
Transformation has become one of the hottest topics in China banking industry. Whether the wholly state-owned commercial banks implement joint-stock reform and transform into state-controlled commercial banks, or cater to the development trend of international financial industry and domestic banks move towards mixed operation, these changes in system and business have brought great impact on the development of China's banking industry-the organizational structure, business process, management system and marketing system of domestic commercial banks need to "adapt to changes".
The industry believes that the entry of foreign banks also has a positive impact on Chinese banks. In terms of scale, at present, domestic banks have not been able to compete with the four state-owned banks, but foreign banks have abundant capital, which can stimulate the sense of urgency of Chinese banks, promote their efficiency and enhance their competitiveness. Competition means survival of the fittest, and it can also promote the integration and reform of domestic banking.
With the strengthening of capital supervision, the traditional business development mode of China Commercial Bank, which pursues scale expansion unilaterally, is in trouble. On the one hand, the sustainable development of the national economy needs financial services and support with capital as the core. Risk assets such as bank credit assets will maintain a rapid growth rate for a long time and will increasingly become the propeller for the sustained and healthy growth of the national economy; On the other hand, the rapid expansion of the scale brought by the business model based solely on deposit and loan business will occupy a lot of capital and lead to a sharp decline in the bank's capital adequacy ratio. However, if the capital adequacy ratio does not meet the minimum regulatory requirements of 8%, the regulatory authorities will take severe sanctions.
Under the new regulatory environment, in order to realize the sustainable development of business, China commercial banks must explore the transformation of business development mode and profit growth mode, improve the profitability of assets, thereby enhancing their own accumulation ability and attractiveness to external capital, build the core competitiveness of banks through the transformation of business and profit mode, and enhance the return on capital and investment value of banks.
Ma Weihua, president of China Merchants Bank, pointed out that under the impetus of economic globalization and informatization, the global banking industry is showing four major trends and two major disintermediation. The four major trends are information survival trend, integrated management trend, capital marketization trend and internationalization trend. The two major disintermediations are capital disintermediation and technology disintermediation. Capital disintermediation is the dominant phenomenon of indirect financing of banks, which is changing day by day. Technology disintermediation is an area where it will also occupy bank payment. How to transform? I think the only way is "financial innovation".
However, due to historical, institutional and practical constraints, China's banking products and services have not adapted to this change. Banks in China must subvert the traditional business model, optimize the governance structure, and update their business philosophy and banking culture through innovative products and services.
McKinsey once prescribed a prescription for foreign banks to enter China, saying that private banks, especially consumer credit and credit cards, would make the most money if they wanted to go to China. Its suggested strategy is to let them cooperate with Chinese banks, but win profits with technology.
Facing the international competitive environment, China Commercial Bank is facing the comprehensive reform and innovation of operation and management at this stage. It is necessary to use information technology as a means to realize profound changes and comprehensive innovations in financial products, financial instruments and bank management. However, for many years, the business-driven systems built by Chinese banks can't communicate, information can't be shared, and information resources can't be effectively managed. Therefore, the level of in-depth development and comprehensive utilization of information is far lower than that of developed countries, and the data base supporting scientific management decision-making is still weak.
In 2000, carrying the banner of "data centralization", ICBC set off an upsurge of data centralization construction in China banking industry. In the following years, the informationization of the entire banking industry did not leave this "main line". By the second half of 2002, ICBC took the lead in completing the centralized data construction, integrating more than 40 data centers distributed throughout the country into two interconnected and backup data centers in Beijing and Shanghai. Later, the two centers merged into one, with Shanghai as the center and Beijing as the backup center, and a unified national computer system platform was built. China Construction Bank and China Bank have also centralized data successively, and established several regional data centers throughout the country. Agricultural Bank of China has the largest number of outlets and the widest distribution. It realizes data concentration by establishing regional centers and then moving from regional concentration to national concentration.
2004 was a year of continuous innovation in banking business. The centralized data construction of major commercial banks was basically completed, and the banking industry in China entered the third stage of informatization. The deep mining and integrated application of data is directly related to the service innovation and the promotion of core competitiveness, and to the success or failure of China's financial industry in the global competition.
Wang Yunsheng, general manager of The Export-Import Bank of China Science and Technology Department, believes that the purpose of data concentration is to support business development, business management and business innovation. It is obviously not enough to concentrate, but also to dig deep into these data, analyze the trend of customers and capital flows, and monitor and predict risks. Therefore, the main task of banks in the future is to build business systems. The construction of data warehouse and disaster recovery center is also a problem that can not be ignored. One more thing, business innovation can also be carried out through data utilization, which is the main content of future banking competitiveness.
Data concentration has laid a good foundation for the innovation and development of financial products, and is the background support system for the development of banking business. The most intuitive experience for users is the e-finance business based on various information technologies. Online banking is a good example. For example, ICBC's online banking was founded earlier, but due to the decentralized management of customer information and account data, its business has been in a groping state. After the completion of data concentration at the end of 2002, online banking has made great progress, and the scale of users and transaction amount have increased rapidly. At present, ICBC's online banking has more than 80,000 corporate users and 9 million individual users.
The bank rebuilt new bottles of new wine.
Modern banking and IT have always been a fish-water relationship. Institutions should be adjusted, governance should be standardized, business should be innovative, and management should be scientific. Only those financial enterprises that can effectively use information technology resources can gain real competitive advantage through management and business innovation. The historic progress of the banking industry reflects that after years of efforts, China's financial informatization construction has entered a more mature stage and stood at a higher level. The basic completion of data collection is an important symbol of this historic progress.
In terms of business innovation, the core business system and customer relationship management system designed by the whole banking industry under the guiding ideology of taking customers as the center can provide and store rich customer basic information and original transaction information, and then use database technology to segment the market.
An industry authority pointed out that there are still some technical difficulties in the information system to be supported after the bank reform. First, how to integrate with the historical system and make a smooth transition. Second, it involves how to choose an open platform and a closed system, taking care of the connection of historical data of banks. Third, information security should be considered to ensure high availability. Then it is the test after the system is completed and the performance evaluation of the whole application system after the system is developed. These problems are all links that banks should pay attention to in information construction.
Banks abandon the past management mode of division of functions and joint operation of competent departments, and with the help of modern information technology, fundamentally rethink and design business processes, and change the traditional "banking center" into "customer first", thus promoting the emergence of banks in organizational structure, division of labor pattern, product design, incentive mechanism and power allocation. This is the essence of "bank reengineering".
Facing the end of the transition period of WTO, China's banking industry will face a new situation of opening to the outside world. Both Chinese banks and foreign banks will face their own tests. We expect China's commercial banks to appear in front of the world as high-tech images in the digital age.
I. Opportunities and benefits brought by China's accession to the WTO to China's banking industry
1. is helpful to promote China's financial operation and financial supervision to international standards. After China's entry into WTO, with the large-scale entry of foreign financial institutions and their businesses into China, it will provide a rare reference system and competitors for China's banking industry, and play a role in demonstration, encouragement and communication. It will further promote and strengthen the contact and cooperation between China's banking industry and foreign banks, and prosper China's financial market through market complementarity. At the same time, the new ideas, new ideas, new businesses, new products and new ways of frontier financial management of foreign financial institutions will stimulate the deepening of banking reform in China, accelerate the commercial transformation of China's banking industry, help improve the commercial banking system, and thus promote the integration of China's financial business with the international market.
2. It is conducive to the innovation of financial products in China. After China's entry into WTO, foreign financial institutions will bring innovative financial products to China. In particular, financial derivatives and products that lead the new trend of modern international financial market, with the futures trading forms of general financial instruments such as currency, foreign exchange, stocks, bonds, certificates of deposit, interest rates, exchange rates and stock indexes as the content, and high-tech means such as communication technology and computers, will be brought to China with the characteristics of avoiding market risks, reducing borrowing costs, stabilizing investment income, improving market liquidity, feeding back global information, attracting many customers and predicting future prices.
3. It is conducive to improving financial business and service means and further popularizing credit consumption. After entering the financial market in China, foreign financial institutions will open up various new businesses and services that domestic banks have never opened. This will create favorable conditions for the expansion of financial business, the improvement of financial electronicization and the improvement of financial service quality in China.
4. It is conducive to expanding the channels of capital utilization and improving the effectiveness of capital investment. After China's entry into WTO, with the large number of foreign financial institutions entering, some funds will be brought to China, which will broaden the channels for China to use funds. At the same time, the participation of foreign securities firms in the fund management industry will gradually increase the variety of funds and develop practical and efficient financial products. Our customers can not only have more investment options, but also make the most of their limited funds.
Two, China's accession to the WTO will bring pressure and impact to China's banking industry.
The first prerequisite for China to join the WTO is to fully participate in international competition in the financial field. According to China's three commitments in the financial field during the WTO accession negotiations: First, China will gradually open its RMB business after WTO accession. Two years after joining the WTO, foreign banks are allowed to conduct local RMB business with China enterprises; Five years after joining WTO5, foreign banks will be allowed to operate RMB retail banking business. The second is to open the securities industry. After joining the WTO, China will allow foreign financial companies to hold 33% of the shares in fund management enterprises, which will increase to 49% three years later; Foreign stock underwriters can hold 33% of the shares in the joint venture underwriting company. The third is to open the insurance industry. Within five years after joining the WTO, China will gradually expand the business scope of foreign-funded insurance institutions, such as group insurance, health insurance and endowment insurance. China agreed that foreign investors can own 50% of the equity of the joint venture life insurance company. In short, China will cancel the geographical restrictions on the establishment of foreign banks within a certain period of time, and allow more foreign banks to start RMB business, so as to further expand the scope of RMB business.
Judging from the timetable for opening RMB business signed at present, such a fast opening speed of RMB business will make China's financial industry face great risks. International industry experts believe that it will take China's banking industry about ten years to prepare for the opening of RMB. One of the reasons is that the capital adequacy ratio of China's banking industry is generally insufficient, and it is impossible to replenish capital in a short time; Secondly, the non-performing loans of financial institutions in China will be difficult to clear in five years. Although there are plans to sell or securitize this part of the debt at a discount, this process may take several years or even longer. This will make China's banking industry not adapt to the WTO system in many aspects, such as business model, business philosophy, market environment, technical means, talent quality, supervision system and risk prevention, so it will face unprecedented pressure and challenges. Specifically, there are the following aspects:
1. Facing the challenge of management system. Most foreign banks operate and manage according to international practices, and are basically free from government intervention. However, due to the low degree of opening to the outside world, most domestic banks are not familiar with international practices and cannot meet the requirements of management under unified rules. In particular, China's banking industry is in the process of market economic system reform, and has not been fully managed in accordance with market mechanism, competition rules and efficiency principles. Some banks are not real financial enterprises at present. Although the state requires domestic banks to lend money according to market rules rather than national plans, banks still bear the policy function of government macro-control to a certain extent and play the role of government cashier. Banks should not only engage in so-called policy loans from time to time, but also implement the unified requirements of higher-level banks in terms of institutional management, business operation, employment management and distribution methods. Especially when the state is in financial difficulties, banks still take the place of finance to a great extent and undertake a large number of dual policy businesses of the state and local governments for a long time. It is understood that at present, policy loans of state-owned commercial banks still account for more than 25%, and policy loans have always been the lowest among bank loans, and non-performing assets loans account for the highest proportion. The gap in management will be a hidden danger that restricts the development of China's banking industry.
2. Facing the challenge of business model. At present, the financial industry in China implements a strict separate management system. According to the Commercial Banking Law, domestic commercial banks are not allowed to carry out investment business, which restricts the further development of the banking industry to some extent. However, most foreign banks adopt the management mode of mixed operation, that is, commercial banks, investment banks, securities and insurance are integrated. In this case, once comprehensive foreign financial institutions enter the China market, China banking will undoubtedly be at a disadvantage in the competition.
3. Facing the challenge of business innovation and quality service, China will be at a disadvantage in financial business innovation and quality service after joining WTO, and some big foreign banks have matured in this respect. At present, Chinese banks still mainly adopt the traditional business operation mode, and the focus of business development is mainly on the deposit market share. This will not only easily lead to the risk increase of traditional RMB business in China's banking industry, but also lead to the slow development of foreign-related business, intermediary business and new loan business, resulting in the loss of international settlement and other businesses, leaving some new profit growth points with insufficient stamina. According to statistics, at present, only foreign banks handle low-risk, low-cost and high-profit international settlement business in China, which has occupied more than 40% of the market share in China.
4. Facing the challenges of technical means and financial products. Due to advanced technology and equipment, high degree of science and technology, sound information network (global networking of banking business) and strong innovation ability, some large foreign banks have shown a trend of globalization, automation, electronization and standardization in their financial business and products, and have always been in a leading position in technological means innovation and derivative financial products. Due to the diversity of financial products, foreign banks can profit from various businesses and channels and make up for certain losses. This kind of competition is detrimental to China's banking industry. China's banking industry is limited to a very narrow field of deposits and loans due to the implementation of separate operations, and the basic service targets are mainly state-owned enterprises, resulting in a single profit channel and traditional financial products, which leads to more concentrated financial risks and continuously weakened competitiveness of banks.
5. Facing the challenge of financing risk. After China's entry into WTO, the financing risk of China's banking industry will increase due to the single form of financial assets and financing means. At present, the form of financial assets in China is mainly indirect financing through banks, and bank financing accounts for more than 80% of financial assets. At present, the single financial asset structure formed by China's over-reliance on huge bank savings deposits is caused by the underdevelopment or even serious lag of direct financing markets such as bond market and stock market. A high proportion of indirect financing is not only difficult to meet the requirements of WTO system, but also will increase the operational risk of banks. In western developed countries, the proportion of direct financing and indirect financing is almost 50% each. At the same time, because foreign banks enjoy super-national treatment in many fields. For example, in terms of taxes and fees, the comprehensive tax rate of Chinese banks is as high as 70%, while that of foreign banks is only 30%. These advantages of foreign banks are likely to lead to a large loss of domestic high-quality customers and a sharp decline in domestic financing share. Statistics show that 80% of the profits of Chinese banks come from 20% of high-quality customers. Once China's high-quality customers are snatched away by foreign banks, the high-quality capital sources of Chinese banks will be diverted and the financing share will be squeezed out. In the end, China's banking market has poor financing ability and reduced profitability.
6. Facing the challenge of talent competition. After China's entry into WTO, the fiercest competition between foreign financial institutions and China's banking industry will be the competition for talents. With the continuous expansion of foreign banks' business in China market, they will attract a large number of outstanding talents in China banking industry with high-paying employment, generous benefits, heavy responsibilities, overseas training, fair employment incentive mechanism and excellent working environment. As a result, a new round of outstanding business backbones in China's banking industry will be lost, further aggravating the gap between China Bank and major international banks.
7. Facing the challenge of financial security. At present, China's financial supervision laws and regulations are not perfect, financial equipment is backward, the degree of localization is low, the ability of risk prevention is poor, the ability of safety supervision is insufficient, the means of restriction is not strong, and the internal audit system is not strict, which are the biggest hidden dangers of China's financial security. Take the foreign banks that have entered our country as an example. Foreign banks can conduct business nationwide as long as they have institutions anywhere in China. At present, foreign banks generally have a tendency to deposit more and lend less. On the one hand, they transfer the foreign currency deposit funds absorbed in China to overseas for arbitrage; On the other hand, foreign banks evade China's tax by transferring profits and paying less deposit reserve. Some foreign banks use non-price means such as kickbacks and commissions to compete unfairly with state-owned banks. If China lacks the supervision means for a few existing foreign banks, once China joins WTO, the capital account will be opened to the outside world and international hot money will flood in, which will bring greater risks to China's banking industry and may even cause financial disorder. At the same time, due to China's weak financial security supervision ability, it may also cause China's telecommunications, communications, media, railways, insurance, high-tech enterprises, foreign-funded enterprises, large private enterprises and other industries and markets that have always been favored by foreign banks to gain profits from monopoly industries in a certain period of time with full support, thus forming market monopoly and industry monopoly.
8. Facing the challenge of non-performing assets. Some large foreign banks will be in an obvious and effective position in the competition because of their large scale, strong financial strength and relatively good asset quality. For example, the total assets of Citigroup in the United States are more than 700 billion dollars, which is equivalent to the sum of the assets of four wholly state-owned commercial banks in China. At present, the ratio of non-performing assets of American commercial banks is only 0.67%, while that of China banks is as high as 30%, which is not only far higher than the maximum limit of 17% stipulated by the People's Bank of China, but also far higher than the ratio limit of overdue loans not exceeding 8%, non-performing loans not exceeding 5% and bad debts not exceeding 2% stipulated by the People's Bank of China. The survey shows that if off-balance-sheet loans and off-balance-sheet loans (assets actually belonging to loans are hidden in other asset accounts other than loan accounts, which is an illegal act to evade scale control) are considered, the actual non-performing loans of the four major state-owned commercial banks are higher than their books by more than 10 percentage point. If all the actual bad debts are written off, some state-owned commercial banks may be insolvent. The expansion of non-performing assets of banks is the main risk faced by China's banking industry at present, and it is also an important obstacle to the healthy operation of the banking industry and China's entry into WTO.
At present, the main problems in the safety, liquidity and profitability of China's banking assets are: (1) the capital adequacy ratio is too low and the capital is seriously insufficient. (2) Decline in asset liquidity. The performance is as follows: ① the capital turnover speed is slow. In recent years, the average annual turnover rate of all loans of the four major state-owned commercial banks is less than 1.2 times. ② The ratio of fixed assets to capital is too high. In recent years, the average proportion of fixed assets in the capital of the four wholly state-owned commercial banks is above 70%, which is far higher than the maximum limit of 30% stipulated by the Ministry of Finance of China, and even higher than the proportion of 20% of some foreign banks. ③ The repayment rate is low. According to statistics, by 1999, the balance of domestic bank loans reached 9.6 trillion yuan, accounting for 1 10% of GDP in that year, of which the four wholly state-owned commercial banks accounted for almost 72% of all credit. Moreover, in recent years, even the interest recovery rate of the four major state-owned commercial banks is less than 60% on average. (3) The profitability of assets is poor. Not only is the return on assets low, 1999 is 0. 16%, but also the return on assets is low. In recent years, the average return on assets of the four state-owned commercial banks is less than 6%, which is much lower than that of foreign commercial banks. At the same time, the phenomenon of false profits and real losses is also widespread. (4) The operating cost is too high. On the one hand, the per capita operating expenses are high. In recent years, the per capita operating expenses of the four major state-owned commercial banks are nearly 50,000 yuan. On the other hand, the per capita profit is low. In recent years, the per capita profit of the four major state-owned commercial banks is about10.5 million yuan. (5) Low credit rating. At present, Moody's, one of the largest credit rating agencies in the world, believes that the wholly state-owned commercial banks in China do not meet the international regulatory standards and their credit ratings are low. (6) The comprehensive index of financial risks is high. From 65438 to 0999, the comprehensive financial risk index reached 48.2, close to the warning line of 50. (7) The credit increment decreased. A high proportion of non-performing loans blocked the circulation of credit funds and greatly reduced the liquidity of assets. Financial institutions have to rely on a large number of deposits, especially the continuous increase of residents' savings deposits to maintain normal operation (nearly 70% of credit funds in China are composed of residents' savings deposits). Once the growth rate of savings deposits is too low or declines, it will not only affect the turnover of bank credit funds, but also lead to large-scale payment difficulties. (8) The difference has increased. Since 1997, the bank's loan-to-deposit ratio has reached more than 40%. It is expected that the loan-to-deposit ratio of wholly state-owned commercial banks will be further improved. At the same time, since 1997, the interest rate of reserves paid by the People's Bank of China (also known as excess reserves, including reserve deposits and cash on hand in the central bank) has been close to 8%, while other commercial banks have reached more than 18%, which is much higher than the deposit interest rate absorbed by commercial banks. This leads to "idle" funds in the banking system. If the deposit reserve of 8% is added (commercial banks pay the statutory deposit reserve to the central bank according to 8% of the average balance of deposits in a certain period), the unused funds in the central bank's deposits are as high as 30% or more. This will reduce the supply of bank funds to the society, increase the interest burden of the central bank, and affect the profits and income of banks.
Iii. Countermeasures and suggestions for accelerating the development of China's banking industry in the face of WTO
(1) Accelerate the comprehensive reform of the macroeconomic system.
Facing the WTO, the problem of weak competitiveness of China's banking industry seems to be reflected in the banking industry, but the crux is the reflection of the deep-seated problems of China's macroeconomic system in the financial industry. Therefore, improving the international competitiveness of the banking industry is not only a matter for the financial sector, but also requires the state to coordinate and cooperate in laws, regulations and policies, as well as finance, credit, foreign exchange, foreign trade, taxation, personnel and enterprises, and carry out comprehensive supporting reforms. At the same time, it is necessary to establish and improve the standardized operation mechanism of enterprises, banks and governments to meet the requirements of marketization.
1. Establish and improve laws and regulations on financial operation and supervision. First of all, trust law and investment banking law should be promulgated as soon as possible to develop the business space of financial institutions and broaden the channels for the use of funds. Further revise and improve the Commercial Banking Law, Insurance Law, Securities Law, Foreign Banks Law, Regulations on the Administration of Foreign Financial Institutions, Interim Measures for the Pilot Administration of RMB Business of Foreign Financial Institutions and other relevant laws and regulations. In accordance with international prudential supervision standards, strictly control the market access of commercial banks, strengthen supervision according to law, control financial risks and maintain equal competition. At the same time, it is necessary to strengthen law enforcement in the financial sector. At present, poor financial order and poor law enforcement are one of the main reasons that plague the development of China's banking industry. On the one hand, it is necessary to strengthen the legal constraints on banks, strictly implement the Commercial Bank Law, the General Principles of Loans and other laws and regulations, and persist in handling financial and credit affairs according to law. On the other hand, it is necessary to maintain financial order, protect the interests of bank creditors, stop new debt evasion and prevent the occurrence of new non-performing assets.
2. Gradually establish a unified financial market. After China's entry into WTO, China should form a linkage mechanism among capital market, money market, foreign exchange market and gold market, and gradually realize the unification of similar markets, so as to help monetary policy better play its macro-control function. In particular, it is necessary to develop the capital market and appropriately expand direct financing. On the premise of indirect financing, gradually increase the proportion of direct financing to spread the financial risks of banks. However, the development of direct financing focuses on system construction, based on the improvement of central bank's macro-control ability and the efficiency of indirect financing. Expanding direct financing can securitize some non-performing assets and help solve non-performing assets.
3. Use fiscal policy to adjust the proportion of state-owned enterprise liabilities and non-performing assets of state-owned banks. Resolving the non-performing assets of banks is one of the most important weights for China's banking industry to join the WTO and participate in the international market competition. In this regard, we can consider using fiscal policy to solve the non-performing loans of banks. All corporate debts caused by financial reasons, such as insufficient financial capital injection, policy losses and other financial subsidies that should be given but not given, should be made up by bank loans and solved by issuing bonds to the central bank (special government bonds, earmarked for structural adjustment of state-owned enterprises). At present, bank funds are willing to hold treasury bonds because it is difficult to lend (good enterprises do not lend from banks, and bad enterprises dare not lend). The funds raised by the finance shall be collected in a special account, and the relevant departments such as the People's Congress and the auditing organ shall be responsible for supervising the use. The financial use of the fund can be allocated to enterprises in the form of special checks through discount, tax reduction, subsidies and direct investment to support the development of some industries and enterprises in line with industrial policies. Enterprises also use special checks to repay bank loans, and specialized banks use special checks to repay loans owed to the central bank. This debt restructuring method can not only reduce the non-performing loans of banks, but also reduce the debt burden of enterprises.
4. Use intermediaries to promote the debt-equity conversion between enterprises and banks. In view of the provisions of China's "Commercial Banking Law", commercial banking and investment banking are separated, and commercial banks cannot hold shares in enterprises. We can consider using intermediaries to promote the debt-equity conversion between enterprises and banks. Let the intermediary institutions with high market operation ability undertake the debt restructuring of enterprises. Intermediaries can concentrate the funds of domestic and foreign investors in various ways, buy the creditor's rights owned by professional banks, and convert the creditor's rights into equity. Then he entered the enterprise as an equity owner and reorganized the capital and debt of the enterprise, as well as the industrial structure and organizational structure of the enterprise, in order to improve the competitiveness of the enterprise in the market. The significance of this mode of operation