On May 24th, according to the website of the central bank, the people's Bank of China and Bank of China Ltd. Insurance Regulatory Commission jointly issued a notice that in view of the serious credit risk of Bao Shang Bank Co., Ltd., in order to protect the legitimate rights and interests of depositors and other customers, in accordance with the relevant provisions of the Law of the people's Republic of China on Banking Supervision and Administration and the Law of the people's Republic of China on Commercial Banks Bank of China Ltd. Insurance Regulatory Commission decided to take over the contractor bank for a period of one year from May 24, 2019.

In accordance with the provisions of relevant laws and regulations, the people's Bank of China and Bank of China Ltd. Insurance Regulatory Commission, together with relevant parties, set up a takeover team to take over the contractor bank. From the beginning of the takeover, the receiving team fully exercises the management power of the contractor bank and entrusts China China Construction Bank Corporation Co., Ltd. to take care of the contractor banking business. China Construction Bank Corporation set up a trusteeship working group and worked in accordance with the trusteeship agreement under the guidance of the takeover group. After taking over, the contractor bank will operate normally and the customer business will be handled as usual to protect the legitimate rights and interests of bank depositors and other customers in accordance with the law.

How much does the contractor bank know?

According to data, Bao Shang Bank, founded in December 1998, is the earliest joint-stock commercial bank in Inner Mongolia Autonomous region, formerly known as Baotou Commercial Bank, and changed its name to Bao Shang Bank in September 2007.

The Bao Shang Bank has a total of 18 branches and 291 business outlets (including communities and small and micro branches), initiating the establishment of the Baoyin Consumer Finance Company, the financial service center for small enterprises, and 29 village banks; institutions are spread across 16 provinces, municipalities and autonomous regions across the country.

The chairman of Bao Shang Bank is Li Zhenxi, the secretary of the party committee and supervisor is Li Xianping, the vice chairman Jin Yan, and the vice chairman and president Wang Huiping.

In addition, the annual report of the contractor Bank has been delayed for two consecutive years, and both the 2017 annual report and the 2018 annual report have not been disclosed. If you look at the 2016 capital adequacy ratio alone, it is normal:

The reason for the takeover is not clear, but judging from the fact that the annual reports of the last two years have not been disclosed, the problem of credit risk may be more serious. Currently, only financial data as of the third quarter of 2017 are available:

In addition, public data show that since 2017, the non-performing loan ratio of contractor banks has been at least 3.25%, higher than the national average of 1.5% of urban commercial banks in the same period. On the other hand, in terms of provision coverage and loan provision coverage, they are also lower than the regulatory requirements, the ability to resist risks has declined seriously, and continue to replenish tier one capital.

The ownership structure of the contractor bank is also complicated. Enterprise investigation shows that there are at least four types of state-owned shares, individual shares, corporate shares and collective shares. The data also show that there are 255 risks related to Bao Yin, and 11752 related risks.

According to Jufeng Investment Analysis, it is rare for the central bank and the Bancassurance Regulatory Commission to take over banks. The takeover of the contractor Bank has a certain exemplary role. At the same time, the incident shows that there are major problems in the internal management and credit risk of the city commercial bank, and it also shows that while the management strengthens supervision, it can take timely measures to deal with the problems to prevent the occurrence of financial risks.

The person in charge answered the full text of the reporter's question

Today, the person in charge of the people's Bank of China and Bank of China Ltd. Insurance Regulatory Commission answered a reporter's question on taking over the contractor bank. The following is the specific full text:

1. Why take over the contractor bank?

The contractor bank has serious credit risks. in order to protect the legitimate rights and interests of depositors and other customers, in accordance with the relevant provisions of the Law of the people's Bank of China, the Commercial Bank Law of the people's Republic of China, and the Banking Supervision and Administration Law of the people's Republic of China, the people's Bank of China and the Banking and Insurance Regulatory Commission jointly took over the contractor Bank in accordance with the law on May 24, 2019, for a period of one year.

2. Why is it hosted by China Construction Bank Corporation of China?

The purpose of the trusteeship is to ensure the normal operation of the contractor bank and the business will not be affected.

China Construction Bank Corporation of China is one of the largest commercial banks in China, with strong comprehensive strength, standardized operation and management, perfect network and customer service system. The implementation of trusteeship by China Construction Bank Corporation of China will help to ensure the normal development and continuous operation of the business of the contractor bank.

3. Is the principal and interest of individual savings deposits fully protected?

The people's Bank of China, the Bancassurance Regulatory Commission and the Deposit Insurance Fund guarantee the full principal and interest of individual savings deposits, and there is no change in the freedom of personal access.

4. What is the impact of takeover on personal finance business?

After taking over, the personal finance business of the contractor bank will not be affected, and the original contract will continue to be executed without re-signing.

5. What should I do if I hold a contractor's bank card? Is online banking business affected?

After taking over, the bank card of the contractor bank will be used as usual, the bank card with UnionPay logo can continue to be deposited and exchanged in various banks, and the online banking business will not be affected as usual.

6. What do individual customers need to cooperate to do after taking over?

I don't need it. After taking over, the contractor bank operates normally, personal deposit, loan, foreign exchange and other business as usual, without personal cooperation to do any work.