Recently, the first "Financial Shenzhen at that time" pioneer case release and promotion event was held in Shenzhen. Zhang Wei, Vice Dean of the National Institute of Financial Research, Tsinghua University, delivered a keynote speech on the topic of "Functional and Profitable Commercial Banks: Balance and Sustainability".
Zhang Wei said that in the new stage of development, commercial banks should find their own positioning, serve the real economy, firmly establish a correct view of business, performance and risk, balance the relationship between functionality and profit, and insist that functionality is the first.
Zhang Wei pointed out that 2023 is a big year for the reform of China's financial system. The establishment of the Central Financial Work Committee, as well as the successive establishment of local financial committees, local financial working committees, and local financial management bureaus in many provinces, and the formation of the practice of "three brands, one set of people", reflect the party's centralized and unified leadership over financial work.
Zhang Wei said that the interpretation of the CPC Central Committee on building a financial power, developing a financial path with Chinese characteristics, and cultivating a financial culture with Chinese characteristics aims to further unify thinking and organize the implementation of relevant policies. Marked by the convening of the Central Financial Work Conference, the financial industry continues to study, comprehend, and implement the spirit of the conference. In the new stage of development, commercial banks should find out their own positioning, serve the real economy, firmly establish a correct outlook on operation, performance and risk, balance the relationship between functionality and profit-making, and insist that functionality comes first.
At present, the mainland is aiming to build itself into a financial power, and the reform of the financial system is the focus at present. As an important pillar of China's financial industry, commercial banks will be given a new mission in the new stage of development. Zhang Wei gave an in-depth analysis of the operating principles of commercial banks mentioned in the Commercial Bank Law. He believes that efficiency is oriented to business results, that is, it is reflected in the results of whether to make money, while profit-making is the motive and purpose of making money. In the operating principles, functionality is put in the first place, which means that for commercial banks and all financial institutions, their core functions should serve the national strategy, which represents a new direction of financial supervision and a new adjustment of the positioning of financial institutions.
Zhang Wei emphasized that one of the main challenges facing commercial banks is to balance functionality and profit. As financial institutions, commercial banks must ensure their own financial sustainability in order to better serve the real economy. Therefore, under fair market conditions, it is in line with the principle of legitimacy to earn fair returns through one's own ability, but commercial banks cannot take making money as their sole goal. The Central Economic Work Conference clearly pointed out that it is necessary to adhere to the idea of "playing a game of chess" between finance and the economy, with the aim of transforming finance into a "bloodline" that runs through the whole body of the economy.
Commercial banks need to find a balance between serving the real economy and maintaining their own financial sustainability. Zhang Wei pointed out that since 2012, the yield of commercial banks' deposit and loan spreads has continued to decline, which poses a challenge to the financial health of commercial banks. On the one hand, due to the reduction of the policy rate, the interest rate on the asset side of banks has fallen, while the deposit interest rate on the liability side is relatively difficult to fall, resulting in a thinner interest rate spread. On the other hand, in order to serve the national strategy, commercial banks have made concessions to the real economy, so that interest rate spreads have also thinned to a certain extent. Among them, many small and medium-sized banks will face greater financial pressure. Therefore, commercial banks need to find a balance between the two to ensure that they do not neglect the other.
It is reported that the first "Financial Shenzhen at that time" pioneer case release and award ceremony was sponsored by the Guangdong Branch of Xinhua News Agency, undertaken by Xinhua Finance and Economics of China Economic News Agency, supported by Shenzhen Banking Association and Shenzhen Insurance Association, and supported by Tsinghua Financial Review.
Article source丨Xinhua Finance
This article is edited by Wang Mao
Editor-in-charge丨Ding Kaiyan, Lan Yinfan
Preliminary trial丨Xu Lanying
Final Review丨Zhang Wei
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