China Eximbank held 2021 Video Conference on Risk Prevention and Control and Asset Preservation

2021-02-10

    China Eximbank held the 2021 Video Conference on Risk Prevention and Control and Asset Preservation in Beijing on 8 February. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the conference summarized the Bank’s major work at the earlier stage and the main issues it is now facing, and made arrangements for risk prevention and control and asset preservation for 2021. Chairman Hu Xiaolian made important instructions, Vice Chairman and President Wu Fulin delivered a speech and Vice President Sun Ping presided over the conference. Zeng Mingzi, Chief Inspector of the Discipline and Supervision Office at the Bank, conveyed relevant requirements and put forward the Bank’s requirements for future work. Chief Risk Officer Li Zhongyuan made work report to the conference. Equity directors and supervisors of the Bank and the Discipline and Supervision Office at the Bank were invited to the conference. Heads of departments at the headquarters attended the conference at the main venue and heads of branches attended via video link. 

 

    Chairman Hu Xiaolian pointed out in her instructions that since 2020, all staff in the Bank's lines of risk management and legal affairs have taken the initiative to get well-prepared to tackle the difficulties head on. By giving full play to the leading and coordinating role of their work, the whole line has done a great job in helping the Bank achieve substantial results in its three-year battle against risks. Facing the current complex and severe external environment and the arduous task of accelerating economic and social development while maintaining coronavirus control measures on a continuing basis, all staff in the Bank's lines of risk management and legal affairs must follow Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, focus on fulfilling the Bank’s mission, seize the initiative and strengthen their leading and coordinating role to take a more systematic, strategic, pragmatic and forward-looking approach in defusing risks. Efforts should be made to mitigate existing risks and prevent potential ones. Risk prevention and control should be carried out at an earlier stage and risks of key projects ought to be tackled with concrete efforts. In such ways, the management efficiency of the lines of risk management and legal affairs will be comprehensively enhanced and the Bank will have the confidence and courage to win a complete victory in forestalling and defusing risks.

    At the conference, it was noted that focusing on fulfilling their mission and achieving the goal of risk mitigation, lines of risk management and legal affairs spared no effort in protecting assets from loss and made steady progress in handling risks. Tasks in forestalling and defusing risks were successfully accomplished, with the non-performing loan ratio falling from 1.66% in 2018 to 1.62% at the end of 2020. Meanwhile, solid progress was made in defusing risks of key projects, thus enabling the Bank to take the initiative in risk mitigation and enhance its capability of asset preservation. All these were hard-won achievements in risk prevention and control.

    It was requested at the conference that the Bank should earnestly implement the decisions and requirements of its 2021 work conference to achieve the goal of forestalling and defusing risks by conducting risk prevention and control at an earlier stage, carrying out strict post-loan monitoring, increasing efforts in mitigating risks, disposing of non-performing loans well and strengthening the prevention and control of overseas risks. Each business unit should live up to its responsibility in risk prevention and control, spare no effort in protecting assets from loss and step up efforts in the recovery of assets that have been written off. By leveraging their strengths in information, strategy and top-level design and giving full play to the role of relevant business lines, departments at the headquarters should take the initiative to provide better services. This way a benign interactive mechanism of coordinated operation could be formed.

    It was emphasized at the conference that the Bank should make its political stance clearer and enhance the sense of responsibility and mission. Great attention should be paid to the people behind the projects at risk and the internal supervision and coordination mechanism should be put into full use to coordinate the prevention and control of corruption risks both at home and abroad. Law- and rule-violating activities such as seeking personal gains through loans, internal and external collusion and transfer of interests must be resolutely penalized and the Bank should draw lessons from specific cases, strengthen risk prevention and keep the alarm bell ringing.

    During the conference, heads of six branches of the Bank including Shanghai Branch shared their successful experience and good practices in risk mitigation and asset preservation. It was pointed out that the precious experience and tenacious fighting spirit, gained through the hard work and painstaking exploration of the Bank's business lines of risk management and legal affairs, needs to be carried forward.

    It was pointed out that there are still many arduous tasks to be accomplished before the Bank can achieve the goal of risk prevention and control for 2021. The Bank must, acting in accordance with the work arrangements made by its Party Committee, reinforce confidence and determination, maintain strategic focus, strengthen bottom-line thinking, enhance the awareness of potential risks and adopt and adjust its prevention and control measures in a timely manner according to the new trends and new characteristics of the evolving financial risks. Building on the achievements made in forestalling and defusing risks over the past three years, the Bank must make persistent efforts with high morale and a steady work style to accomplish the goals of risk prevention and control set by the Party Committee with high quality.