The Macro Prudential Assessment Framework of China

Research Article
Open access

The Macro Prudential Assessment Framework of China

Shuzhen Zhao 1*
  • 1 Beijing University of Technology    
  • *corresponding author zhaosz123@emails.bjut.edu.cn
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/19/20230139
AEMPS Vol.19
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-81-2
ISBN (Online): 978-1-915371-82-9

Abstract

This paper first introduces the basic concepts of macro-prudential assessment (MPA), and briefly introduces the background of MPA policy implementation, the key indicators of process and MPA assessment, the reward and punishment mechanism, as well as the purpose of China's macro-prudential assessment system. On this basis, this paper selected 15 listed banks as samples to analyze the achievement of the key indicators of MPA. In addition, it analyzes the influence of MPA evaluation system on bank management, introduces the broad credit standard to restrain the asset allocation mode; capital becomes the core constraint; the development mode needs to be adjusted. In addition, the countermeasures of strengthening the capital control, cultivating the awareness of enterprise capital saving, strengthening the strategic management, innovating the asset allocation system, improving the price management system, promoting reasonable pricing, innovating the development model, doing risk prevention and other improvement measures under the MPA mechanism are discussed.

Keywords:

macro prudential assessment, banking industry, China

Zhao,S. (2023). The Macro Prudential Assessment Framework of China. Advances in Economics, Management and Political Sciences,19,206-217.
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References

[1]. Ma, T.: Study on the influence effect and internal mechanism of non-performing asset securitization on the capital adequacy ratio of banks. Hebei University of Economics and Business, 2022.

[2]. Li Y.: Relationship between sufficient capital and the sound operation of commercial banks. Business Watch, 2022 (01): 31-33.

[3]. Zhang J.: Research on risk early warning of commercial Banks in Listed cities. Shenyang University of Technology, 2021.

[4]. Yang C.: The impact of the dual-pillar regulation of "monetary policy and macro-prudential policy" on bank credit risk. Yunnan University of Finance and Economics, 2020.

[5]. Yan X.: The People's Bank of China head office survey and Statistics Department research group. The Broad Credit Research Study. Shanghai Finance, 2019 (04): 1-16.

[6]. Qin Y.: Research on the Broad Credit Risk Management of Commercial Banks under the MPA System. Southwestern University of Finance and Economics, 2019.

[7]. Ren D., Zhang Y., & Yin L. Research on broad credit statistics under the macro-prudential policy framework. Research on Financial Development, 2018 (05): 56-63.

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[17]. China Everbright Bank 2020-2022 Annual Report. http://www.cebbank.com/site/ceb_homepage33/investor_relations3/financial_reports20/h_share42/index.html, last accessed 2023/1/8.

[18]. China Construction Bank 2020-2022 Annual Report. http://www.ccb.com/eng/investor/performancereports/annual_reports/index.shtml, last accessed 2023/1/8.

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[21]. Bank of Beijing 2020-2022 Annual Report. https://www.bankofbeijing.com.cn/en/investment/secondlist?column=1590188709410660352, last accessed 2023/1/8.

[22]. Bank of Shanghai 2020-2022 Annual Report. https://www.bankofshanghai.com.hk/en/Channel/xinxi.html, last accessed 2023/1/8.

[23]. Wang X., Xie X.: Broad credit, capital adequacy ratio and monetary policy robustness. Economics and Management, 2018, 32 (03): 40-43 + 78.

[24]. Huang Z. MPA assessment of the impact on small and medium-sized banks and their coping strategies. Finance and Economy, 2018 (04): 46-48.

Cite this article

Zhao,S. (2023). The Macro Prudential Assessment Framework of China. Advances in Economics, Management and Political Sciences,19,206-217.

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About volume

Volume title: Proceedings of the 2023 International Conference on Management Research and Economic Development

ISBN：978-1-915371-81-2(Print) / 978-1-915371-82-9(Online)
Editor：Javier Cifuentes-Faura, Canh Thien Dang
Conference website: https://2023.icmred.org/
Conference date: 28 April 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.19
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Ma, T.: Study on the influence effect and internal mechanism of non-performing asset securitization on the capital adequacy ratio of banks. Hebei University of Economics and Business, 2022.

[2]. Li Y.: Relationship between sufficient capital and the sound operation of commercial banks. Business Watch, 2022 (01): 31-33.

[3]. Zhang J.: Research on risk early warning of commercial Banks in Listed cities. Shenyang University of Technology, 2021.

[4]. Yang C.: The impact of the dual-pillar regulation of "monetary policy and macro-prudential policy" on bank credit risk. Yunnan University of Finance and Economics, 2020.

[5]. Yan X.: The People's Bank of China head office survey and Statistics Department research group. The Broad Credit Research Study. Shanghai Finance, 2019 (04): 1-16.

[6]. Qin Y.: Research on the Broad Credit Risk Management of Commercial Banks under the MPA System. Southwestern University of Finance and Economics, 2019.

[7]. Ren D., Zhang Y., & Yin L. Research on broad credit statistics under the macro-prudential policy framework. Research on Financial Development, 2018 (05): 56-63.

[8]. SPD Bank 2020-2022 Annual Report. https://eng.spdb.com.cn/investor_relations/, last accessed 2023/1/8.

[9]. Ping An Bank 2020-2022 Annual Report. https://ebank.pingan.com.cn/ir#/pc/index.html/home/relation/relationPage/changehome, last accessed 2023/1/8.

[10]. Hua Xia Bank 2020-2022 Annual Report. https://www.hxb.com.cn/en/abouthuaxiabank/investorrelationship/informationdisclosureannualreport/index.shtml, last accessed 2023/1/8.

[11]. China Minsheng Bank. https://ir.cmbc.com.cn/en/investor-relations/financial-information/financial-reports/, last accessed 2023/1/8.

[12]. China Merchants Bank 2020-2022 Annual Report. https://english.cmbchina.com/CmbIR/intro.aspx?type=report, last accessed 2023/1/8.

[13]. Industrial Bank 2020-2022 Annual Report. https://www.cib.com.cn/en/aboutCIB/investor/reports/, last accessed 2023/1/8.

[14]. Agricultural Bank of China 2020-2022 Annual Report. https://www.abchina.com/en/investor-relations/performance-reports/annual-reports/, last accessed 2023/1/8.

[15]. Bank of Communications 2020-2022 Annual Report. https://www.hk.bankcomm.com/hk/shtml/hk/en/2005773/2500020/list.shtml?channelId=2005773, last accessed 2023/1/8.

[16]. Industrial and Commercial Bank of China 2020-2022 Annual Report. http://www.icbc-ltd.com/en/column/1438058343653851171.html, last accessed 2023/1/8.

[17]. China Everbright Bank 2020-2022 Annual Report. http://www.cebbank.com/site/ceb_homepage33/investor_relations3/financial_reports20/h_share42/index.html, last accessed 2023/1/8.

[18]. China Construction Bank 2020-2022 Annual Report. http://www.ccb.com/eng/investor/performancereports/annual_reports/index.shtml, last accessed 2023/1/8.

[19]. Bank of China 2020-2022 Annual Report. https://www.boc.cn/en/investor/ir3/, last accessed 2023/1/8.

[20]. China Citic Bank 2020-2022 Annual Report. https://www.cncbinternational.com/about-us/investor-relations/interim-and-annual-reports/en/index.jsp, last accessed 2023/1/8.

[21]. Bank of Beijing 2020-2022 Annual Report. https://www.bankofbeijing.com.cn/en/investment/secondlist?column=1590188709410660352, last accessed 2023/1/8.

[22]. Bank of Shanghai 2020-2022 Annual Report. https://www.bankofshanghai.com.hk/en/Channel/xinxi.html, last accessed 2023/1/8.

[23]. Wang X., Xie X.: Broad credit, capital adequacy ratio and monetary policy robustness. Economics and Management, 2018, 32 (03): 40-43 + 78.

[24]. Huang Z. MPA assessment of the impact on small and medium-sized banks and their coping strategies. Finance and Economy, 2018 (04): 46-48.

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