Henan Xiuwu Rural Commercial Bank Company Limited

Henan Xiuwu Rural Commercial Bank Co., Ltd

Henan Xiuwu Rural Commercial Bank Co., Ltd. was registered in Jiaozuo Administration for Industry and Commerce on November 4, 2010, and its legal representative is Han Dajun.

According to the 2017 annual report, the non-performing loan ratio of Henan Xiuwu agricultural commercial bank in 2017 was 20.74%, the capital adequacy ratio fell to - 0.75%, and the provision coverage rate was only 43.44%.

In February 2018, the former CBRC issued the notice on adjusting the regulatory requirements for loan loss reserves of commercial banks, which adjusted the regulatory requirements for provision coverage from 150% to 120% ~ 150%, that is, the minimum requirement is 120%. This means that the capital adequacy ratio, non-performing loan ratio and provision coverage ratio of Henan Xiuwu agricultural commercial bank all deviate from the reasonable range.

Development status

As of the end of 2017, Xiuwu rural commercial bank, which was born out of Henan Xiuwu rural credit cooperatives, had total assets of 6.987 billion yuan, various deposit balances of 4.976 billion yuan and various loans of 3.154 billion yuan. in 2017, the non-performing loan ratio was 20.74%, the capital adequacy ratio fell to - 0.75%, and the provision coverage ratio was only 43.44%.

Annual report explosion

The core business indicators of Henan Xiuwu agricultural commercial bank are really surprising. However, many interviewees in the industry pointed out that the simple case can not be equated with the collapse of ABC in a large area. This is the hidden risk exposure of the original stock after the current round of strengthening supervision, not the sudden new risk. in 2017, the bank achieved an operating revenue of 150 million yuan, a year-on-year increase of 9.5%; however, its net profit was 3 million yuan, a year-on-year sharp drop of 92.86%; its capital adequacy ratio decreased from 12.92% at the end of 2016 to - 0.75% at the end of 2017, and its provision coverage ratio decreased from 191.06% to 43.44%. according to regulatory requirements, the capital adequacy ratio of rural commercial banks should not be lower than 10.5%, and the non-performing loan ratio should not be higher than 5%. In terms of provision coverage ratio, in February 2018, the former CBRC issued the notice on adjusting the regulatory requirements for loan loss reserves of commercial banks, and the regulatory requirements for provision coverage ratio were adjusted from 150% to 120% ~ 150%, that is, the minimum requirement was 120%. This means that the capital adequacy ratio, non-performing loan ratio and provision coverage ratio of Henan Xiuwu agricultural commercial bank all deviate from the reasonable range.

Nature of Business

The business scope of the company includes absorbing public deposits, issuing short-term, medium-term and long-term loans, and handling domestic settlement business.