[unit] Promulgated by the people's Bank of Chinese

[] 19990727 date of promulgation

[] 19990727 date of implementation

[chapter name] notice

The people's Bank of China all branches, business management departments; policy banks, state-owned commercial banks
, other commercial banks, city commercial banks:

In order to real, comprehensive, dynamically reflect the quality of loans, control, guard against and defuse financial risks
Bank credit, improve the management level, according to the State Council leadership in the people's Bank "China about 199
From the "9 years to fully implement the five category loan classification instructions, the implementation of the five category loan classification
Related issues are notified as follows:

According to the five grade classification, a loan

"The people's Bank of the loan risk classification guidelines (Trial)" (Yinfa [1998]
No. 151) is revised and perfected, with paper issued to you. Each bank shall strictly in accordance with the
Know the requirements and the revised "principle of loan risk classification guide (Trial)" do the five level loan classification
Work.

Step five grade two, loan

From 7 at the end of 1999 to the end of 1999, the completion of 4 state-owned commercial
The bank and the 3 policy banks loans five tier classification; from 1999 to 200
By the end of 0, completed 10 other commercial bank loans five tier classification work; from 2000
The beginning to the end of 2000, completed 88 city commercial bank loans five tier classification
.

Three, the loss of loan classification standards

(a) the Ministry of Finance and business for the approval of the State Council, classification and recognition of the loss of loans, in addition to the
Article four the standard provisions of the Ministry of finance financial word (1988) of article 277th, the following three conditions
Conditions are also included in the loan losses:

1 the borrower is revoked according to law, close, dissolution, and terminate the qualifications of a legal person, confirmed not
Pay off the loan;

2 the borrower has not terminated according to law, legal person qualification, but the production and operating activities have ceased, and through
A man has to cease to exist except in name, hopeless, unable to pay off the loan confirmed;

3 units of production activities did not stop, but the product is no market, the enterprise cannot pay their debts
, loss is severe and is on the verge of collapse, and a government does not rescue, confirmed can not pay off the loan.

(two) for any of the following circumstances not zoned for loan losses:

1 the borrower has been bankrupt or has the court ruling, but not for bankruptcy according to the provisions of the State Council
Procedures or not in compliance with the State Council on standardize bankruptcy procedures stipulated in the relevant documents, there are in the form of bankruptcy evasion of silver
Bank debt;

2 the borrower through the restructuring, transfer, lease, contract names evasion of bank debt, creditor's rights
The bank has not yet been prosecuted recourse loan;

3 local governments and relevant departments decided to shut down or cancellation of administrative intervention, evasion of bank debts
Wu;

4 the borrower has more liabilities than assets, but the leadership and staff basic stable, most of the production
Activity is still in progress;

5 before a thorough inventory, the formation of loan risk management regulations in the bank account.

The unaudited confirmation loss loans, regardless of household size are reported to a branch and the head office
Examination and confirmation. Check the specific work shall be carried out by the risk management department and the internal auditing department. To examine
Recognition of the loss loan program, permissions, etc., the actual research is decided by the combination of the system.

Five level classification of four, loan

(a) to strengthen organizational leadership. The people's Bank of China lines in accordance with the "unified deployment, the negative
Its responsibility, strengthen management, to resolve the risk, to carry out the work summary and improvement of the general requirements ". China
Organization and coordination and inspection by the people's Bank is responsible for the classification of work supervision. Each is responsible for the leadership of the system
The classification work, strengthen guidance, strict examination, pay attention to summing up experience, while paying attention to the classification
Constantly improve the five grade classification, improve credit management, to enhance the quality of loans.

(two) to the five grade classification work into the daily work of credit monitoring and assessment. Sort out
Body work should be carried out to various credit position, and keep continuous monitoring and classification. Season 25
Days, in addition to city commercial banks, the bank will loan classification results on the end of season newspaper Chinese
The people's Bank of the head office. The head office branch line in the classification results report and submit the China line
The local branch of the people's bank. The first half of the annual report and the classification result is attached to the analysis report.

(three) in the implementation of the five grade classification of the trial stage, the dual five level classification and the term classification
Operation of the monitoring, evaluation mechanism.

(four) five level classification results, foreign not to publish, and strictly confidential. During this period to period
Limit classification calibre and relevant regulations of statistics and disclose information.

(five) to speed up the development of application software. In the monitoring means, the five grade classification work not only
Taking into account the current, more should be based on long-term. To strengthen the construction of credit management information system, the establishment of efficient
Classification of data transmission mechanism, speed up the classification of information computer entry and summary the pace of work.

(six) to the combination of classification and bad loan collection management. Do a good job in the classification work
At the same time, take effective measures to collection of non-performing loans, and paying attention to the prevention of new loan risk.

(seven) to the five category loan classification work summary and inspection work. In view of this work
Policy and strong technology, 1999 reform of the wholly state-owned commercial banks and policy banks every half year report
A classification of the quarterly report, from 2000 onwards, that by the end of this year 11 report on
Loan classification results at the end of 1999 6; 2000 3 before the end of the 1999 report
At the end of the loan classification results. Other commercial banks in 2001 3 before the end of the month to report all 199
Loan classification results by the end of 9. To ensure the quality of work, the state-owned commercial bank, policy bank
Bank and other commercial banks in accordance with the next check level principles to conduct random checks on classification and results, pumping
Check the surface of not less than 10% of the number of institutions. The various branches of the people's Bank Chinese must organize forces to the
For inspection.

[name] Annex: guiding principles for classification of loan risk (for Trial Implementation)

[note]

[name]: first chapter of loan classification target

Article 1 in order to establish the modern banking system, improve the methods of loan classification, strengthen credit management
Science, improve the quality of credit assets, the purpose of this guiding principle.

Loan classification second this guideline refers, refers to the degree of risk will loan classification
As the process of different grades. Through the classification of loans should be to achieve the following objectives:

(a) the real value and risk of loans, real, comprehensive, dynamic reflect loan
Section quality;

(two) revealed the presence of loans, management, monitoring, and collection of non-performing loans
Problems, strengthen credit management;

(three) for judging the adequacy of loan loss provision provide basis.

[name] chapter second chapter of loan classification standards

Third evaluation of the quality of bank loans, the risk based loan (referred to as
A risk classification), which loans are divided into normal, attention, substandard, doubtful and loss after five
The three is called the bad loans.

Article fourth definition five loans were:

Normal: borrowers are able to perform the contract, there is no sufficient reason to doubt the principal and interest of the loan can not be paid on time and in full
The amount of repayment.

Attention: Although the borrower now have the ability to repay the loan principal and interest, but some are likely to repay
Factors that adversely affect.

Secondary: the borrower's repayment ability obvious problems, completely rely on their normal business income no
Method to repay the loan in full, even if the collateral, may also cause some loss of.

Suspect: the borrower cannot repay the loan in full, even if the collateral, also must cause
Large losses.

Loss: after taking all possible measures and all the necessary legal procedures, the principal and interest of loans still
Unable to recover, or only a small portion can be recovered.

Classification of loan quality is fifth using the loan risk classification method, is in fact judgment by
The possibility of a man in a timely manner to repay the principal and interest of loans, including the main factor of the consideration:

(a) the borrower's repayment ability;

(two) the borrower's repayment records;

(three) the borrower's repayment willingness;

(four) loans;

(five) the legal responsibility for the repayment of loans;

(six) the credit management of banks.

The borrower's repayment ability is a comprehensive concept, including borrower cash flow, financial condition
, affect the repayment ability of non-financial factors.

Article sixth the classification of loans, to assess the borrower's repayment ability as the core, the
The borrower's normal business income as the main source of repayment of loans, loan guarantees as secondary also
A source.

Article seventh the need to restructure the loan shall be classified as sub categories; restructured loans (hereinafter referred to as the weight
Group lending) if it is still within the time limit, or the borrowers are still unable to repay loans, should be at least to the suspicious kind
.

The restructured loans refers to the bank due to deterioration in the borrower's financial status, or inability to repayment of loan closing
The same repayment terms to make concessions loans.

If the restructured loans have other serious problems, according to these guiding principles article fourth and article
Article five further adjustment.

The eighth category, the situation of overdue loans should be considered as a important factor. Be overdue
(including the extension after) over a certain period, the interest receivable not included in the current profits and losses of the loan, at least
Classified as sub categories.

The loan of ninth in violation of relevant state laws and regulations issued should be at least to concern category.

[basic requirements of chapter third chapter loan classification]

Classification of tenth of the loan is an important part of the credit management of commercial banks. In the loan classification
In the process, commercial banks must do at least the following six aspects:

(a) to establish sound internal control system, improve the credit regulations, systems and methods;

(two) establish the effective credit organization management system;

(three) to implement separation of loans;

(four) to improve the credit records management system, to ensure continuity and integrity of the loan records;

(five) improved management information system management, ensure timely access to relevant loan conditions
Important information;

(six) to urge the borrower to provide true and accurate financial information.

Article eleventh the risk-based loan classification is the minimum requirement for loan classification, but also that commercial
Based on the quality of bank loans.

A commercial bank may direct the loan risk classification standard of this guiding principle second chapter, also
According to the guideline, starting from their own credit risk prevention and management needs, formulate the corresponding loan
Loan classification system.

The loan classification system of commercial banks should be established with the people's Bank of Chinese loan risk
Classification method has definite corresponding and transformational relations, and submitted to the people's Bank of Chinese record.

Article twelfth for the classification of loans, not with the customer's credit rating instead of loan classification
The credit rating, only as a reference factor for loan classification.

Article thirteenth if the borrower's financial status or loan repayment factors change,
Timely adjustment of loan classification.

The commercial bank shall at least once every six months on loan classification. The non-performing loans shall be strictly
Increase the monitoring, analysis and classification of frequency, take corresponding measures according to the loan risk status
.

Article fourteenth the risk based loan classification method, the commercial bank shall
Strengthen the management on the loan term. The overdue loans shall be measured in accordance with the relevant provisions of the people's Bank of Chinese
And monitoring.

Fifteenth commercial banks should establish clear collateral, collateral management and assessment of policy and
The program. For collateral assessment, in the market, according to market price setting; in the absence of
The market situation, should refer to the market price of the same collateral value.

Article sixteenth a commercial bank shall make explicit guaranteed loan management policy, for such loans
The classification should give full consideration to ensure the validity of the contract, and ensure the performance guarantee responsibilities.

Seventeenth commercial banks to guarantee the loan classification credit personnel and review staff with the necessary
Credit analysis knowledge, familiar with the basic principles of loan classification. Through training and necessary security measures
Certificate of quality of loan classification.

[name] Chapter fourth chapter organization classification of loans and the implementation of

Eighteenth commercial banks to classify loans, should follow the principles of internal control, guarantee loan
A classification of the independence, continuity and reliability.

The internal report system for loan classification nineteenth commercial banks report made clear
The regulations, ensure that the management is able to know the quality of loans and the changes of.

Twentieth credit officers should be mastered and be familiar with the situations of borrowers and loans, responsibility
As the truth of borrowers and loans written report to the Department responsible for classification reexamination.

The internal audit department of a commercial bank should regularly twenty-first classification policy, the loan program
Inspection and assessment of the implementation, and will examine the results to the superior or the board of directors to make a written exchange
Newspaper.

[name] Chapter fifth chapter loan classification and management

Article twenty-second the people's Bank of Chinese through on-site examination and off-site monitoring two ways of business
For monitoring the quality of bank loans.

Article twenty-third the people's Bank of Chinese principle annually on the quality of commercial bank loans of
Site inspection, including inspection and regular inspection; on loan quality has a major problem of commercial
The bank, will be more stringent regulation.

Article twenty-fourth the people's Bank of Chinese in checking the quality of commercial bank loans, should not only be independent
To classify the quality of loans, but also to the credit policy, credit management level, loan classification
To evaluate the method and the classification procedure and results.

Article twenty-fifth a commercial bank shall, according to the people's Bank of China request submitted to the loan classification number
According to.

Twenty-sixth commercial bank loan losses and write off of bad loans should be based on relevant laws and regulations
Disclosure.

[name] the sixth chapter by chapter

Article twenty-seventh the guiding principle of "loans" refers to "loan general" provisions of the
Such loans.

Twenty-eighth other types of assets, including off balance sheet items in the direct credit for
Generation projects, it should be based on the net value of assets, the capacity of the debtor, the debtor's credit rating
Condition and the security situation is divided into normal, attention, secondary, suspicious, loss of five class, after which the three class
Known as the bad assets.

Classification, to the safety degree of the assets value as the core, specific reference to the loan risk classification
Standards and requirements.

Twenty-ninth commercial banks should establish loan loss reserves in accordance with the principle of prudent accounting
Degree, extraction of general loan loss reserves, according to the loan classification results, extracting special loan loss
Loss reserves (including special loan loss reserves). The proposed method of loan loss reserve
See also the relevant provisions.

This the thirtieth guiding principles applicable to all types of commercial banks.

Policy banks and other financial institutions engaged in credit business of the guiding principle of establishing the
Classification system, but should not be lower than the guiding principle of the proposed standards and requirements.

Article thirty-first the guiding principles by the people's Bank of Chinese is responsible for the interpretation of.

Article thirty-second the guiding principles from the release date of implementation.