CBRC: because of the earthquake is not able to repay the loans can cancel once for all
 
Http://wwwFinancial news real estate network.Com  Publisher: ronshine estate network Date: 2008.05.26
Yesterday, the China Banking Regulatory Commission issued an emergency notice, requiring banks to because the earthquake caused huge losses and cannot receive insurance compensation, or by insurance, guarantee recovery still unable to repay the debt, should be identified as bad debts and timely verification.

This is the central bank, China Banking Regulatory Commission recently stricken mortgage loans can be deferred repayment since, for reducing the debt burden of the affected area of special financial policy, according to the insiders, which means that banks will bear the quake was unable to repay the debts loss.

Unable to repay their debts will be timely verification

The provisions of the CBRC, banking financial institutions shall, in accordance with the relevant provisions of the borrower shall, by the time the earthquake caused great damage and cannot receive insurance compensation, or by insurance, guarantee recovery still unable to repay the debt, should be identified as bad debts and timely verification; for bank card overdraft amount, the cardholder and the guarantor has in this disaster death or One's whereabouts is a mystery., and no other property debt, should be identified as bad debts and timely verification.

Bank insiders think, loans, including loans, if unable to bear the debt, may the loss will no longer by the borrower to bear.

Borrowers obtain loans from banks, and bank mortgage contract is signed and the loan contract, legally speaking, even damage to housing, but the loan contract is still valid, not as the borrower not owing on the loan reasons, if this part as the write off bad debts, means that the loan contract will be terminated, can reduce the repayment burden of the people of disaster areas.

The verification criteria there are still difficulties

Analysis of the industry, the "huge losses", "unable to repay the debt" that, there are some uncertainties, make specific rules based banks should notice in the banking.

Analysis of Guangdong Codd securities analyst Wang Zehui, the mortgage as an example, if the loan people killed, simply can not repay the loan, the debt itself will be borne by the banks, if the borrower Shang Cunhuo, to see whether the collateral value of housing, because housing loans to housing as collateral to obtain loans, housing if the degree of damage repair of large, more than the cost of rebuilding, housing mortgage value basically does not exist, this case should be regarded as bad to write, on the contrary, if only crack slightly damaged, as borrowers, banks are not what loss, there is no need to write off.

The provisions of the CBRC, the verification process can not obtain loans issued by court debtor without Property Liquidation proof, proof, according to the relevant government departments issued a collection and internal reports and legal opinions as the basis for the write offs.

Each branch shall timely repay to write off loans materials, higher institutions should be ready for examination and approval. At the same time, we should guard against the possible risk of false verification.

The rate of bad loans or rebound

Bank had revealed to the media, the earthquake disaster will add 6000000000 yuan of bad loans for the above, and in engineering, construction, etc., to large state-owned banks have not disclosed relevant loss data.

However, from the Sichuan Provincial Bureau of statistics data show, as of the end of 2007, Chengdu, Mianyang, Deyang, ABA and Guangyuan City loans reached 411900000000 yuan, 39112000000 yuan, 27400000000 yuan, 8519000000 yuan and 13779000000 yuan, the hardest hit city a total loan amount accumulated up to 500000000000 yuan.

Guangdong Codd securities analyst Wang Zehui said, for the mortgage, because of damage to housing is not able to repay the debt, developers, banks and insurance companies to share is not clear.

The bank will therefore lead to a surge in non-performing loan rate, but the impact of the banking industry but also distinguish between bank is a regional or national, industrial, construction, for the large state-owned banks, the total assets of great, little affected by write offs, the opposite can be understood from the social responsibility point of view, are more obvious for small and medium-sized banks and local commercial banks, rural credit cooperatives.

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