[Note: the fear of bad debts, but also put what usury. What is not dry, the lowest risk. The best in the world bank, especially for high risk lending small customers, shareholders are most afraid of the risk of Buffett. ]

   Source: twenty-first Century Economic Report

   Recently, American Wells Fargo Bank to become the global market value of more than Chinese "market value of the first". For a time, Wells Fargo Bank business philosophy and business model has become the subject of hot debate. However, not much attention is to Small and micro businesses, individuals and business bank also has a match with adverse tolerance and ability to write off bad debts.

   "Wells Fargo last year's loan write off more than 1% of total loans, non-performing loan ratio is more than 3%. But China's commercial banks, non-performing rate of less than 1% had braved the operating pressure, the verification is to go to the Ministry of Finance approval process, the bank is lack of independent verification mechanism." One is to expand the business of small and medium-sized enterprises joint-stock bank relevant person in charge told the "First Financial Daily" said.

   According to the data statistics found that the public reports, 2012, 16 listed banks to write off bad debts amounted to 33853000000 RMB, and Wells Fargo nuclear sales last year of $9034000000, equivalent to 553 million yuan. That is to say, the 16 listed banks in China last year to write off bad debts only at Wells Fargo Bank six. But the size of the total loans, only 1.8 times as much as the industrial and Commercial Bank of China alone as wells fargo.

    Wells Fargo Bank lending last year nuclear sales accounted for 1.17% of total loans, total non-performing loan amount of 37% (non-performing loan ratio 3.07%); and the 2011 action more verification, verification 112.99 billion in total. In contrast, China's commercial banks in the last year have increased the intensity of the banks to write off bad debts, but the nuclear volume and the proportion of total loans almost always less than 0.1%, and the proportion of non-performing loans is the vast majority of less than 10%.

   The financial system in the planned economy tail?

   Reporter learned from the head office,For the small and medium-sized enterprise business, adhere to the "relying on real income to cover risks, rely on profits to write off bad" concept is particularly important, but the mechanism has not yet been established.

   From the concept of ", such as Wells Fargo independent with their own profits write off their bad, is the real market operation of the road. Only in this way, the bank lending will not be too much risk to beam the hands and feet."

   He added, to write off bad debts can be independent of the rate of bad data results in a decreased, while the outside of non-performing rate itself also need to increase the tolerance. "If this threshold is impossible to bank lending, it is difficult to go out 'collateral' logic."

   However, the Ministry of finance "financial firms to write off bad debts management approach" is to write off bad debts to the strict conditions, financial institutions, including banks need to "provide conclusive evidence, serious accountability, report, examination and approval, confidential".

   "Because of the need to report to the audit, verification process for half a year." The responsible person.

   A bank insiders gave a example in an interview with the Financial Times: commercial banks is the self financing enterprises, no longer is the Ministry of finance assets, "like to spend their own money to buy a piece of meat accidentally rotted away, want to lose the need to fight the report, and to provide a variety of evidence has been unable to eat meat?"

   A big asset preservation Department of a mid-level people on this issue in an interview: "at present, the cancellation policy is actually a tail of the planned economy, the financial system." He said, in many people's logical thinking, banks are still state-owned assets, verification and release means the loss of state assets management reduction.

   In the eyes of the middle class, the Ministry of finance has positive effect on financial verification management, but in bad need identification, audit must be given to relax.

   According to the "management approach" to write off bad debts of financial enterprises, can not provide conclusive evidence of bad debts, shall write off. Creditor's right is identified as bad debts must prove that the borrower and guarantor bankruptcy, death, or revocation of the business license, to stop operating activities, financial enterprises to recover after failed to recover the debt. But in the actual operation, this one from some bank operation personnel department was informed that, due to a lot of bad loans is longer, or related issues into the legal program after the long delay was not found and other practical reasons, in many cases, identification verification certification and qualification have difficulty.

   Notable is, when independent verification is not smooth, and banks to control the rate of bad data results in stabilizing the occasion, individual banks to develop "a policy of". This newspaper had from a joint-stock bank insiders department was informed that, the Bank branch to repay the debt in a number of mortgage borrowers under the condition of the applicant, applied "additional conditions for other large loans", will require new loans to households agreed to take over non-performing loans to households of all mortgage and debt, in order to "loan switching" mode skip verification and collection procedures, reduce the adverse.

   High coverage rate and low verification

   "One is the national banking provision coverage is extremely high, that China banking assets are very safe; one is the provision is not allowed to write off bad loans, non-performing loan balance rise, let the outside questioned China banking risks." the joint-stock bank relevant responsible person.

   The responsible people questioned in an interview, cancellation policy "stuck", makes provision for gauge Commission data display and useless, meaningless. While the high coverage and to write off is not smooth, in fact also affects the profit data bank performance.

   According to the Chinese CBRC in April this year released "China Banking Regulatory Commission annual report 2012" disclosure, as of the end of 2012, China's banking financial institutions 295.5% provision coverage, an increase of 17.3 percentage points; non-performing loan balance of 1.07 yuan, an increase of 23400000000 yuan over the beginning of 2012.

  "In fact, according to the 'bank deposit accounts' principle, the non-performing loan is written off, banks still need to continue to recover loans." For the "assets" concerns, the responsible person, only accounts verification level adjustment, recovery efforts will continue, so the "relevant departments not so worried".

   For some banks call, relevant departments have action. According to a person in the second quarter of this year the CBRC meeting said, will have the bad loan write off system reform. The source said, the CBRC said to the small and medium-sized enterprise loan "shall actively cooperate with the finance and taxation departments, introduction of non-performing loans independent solution as soon as possible".

   In fact, in the Ministry of Finance in 2010 revised version of "financial firms to write off bad debts management approach", has 5000000 and the following single loan for financial enterprises largely independent verification right, such loans with recourse for more than 1 years is unable to recover, in accordance with the bank deposit account the principle of independent verification.

   But the attendant problems,Independent verification standards for new regulations cannot be used as the standard verification of tax expenditures, and tax expenses standard tax administration is very strict, did not give the commercial banks Small and micro businesses tax expenses write off non-performing loans preferential policies, so in the use of the new measures can only be paid after tax write off. Regional institutions smaller value shall write off the tax deductible.

   In this regard, the country will also introduce new measures. Vice Premier of the State Council Ma Kai recently in the national Small and micro businesses financial services experience exchange conference pointed out, the Small and micro businesses non-performing loans shall be given special support, including simplified verification procedures, the pre tax deduction.