CBIRC is consulting on draft provisional rules for regulatory assessment of commercial banks’ financial services for micro and small enterprises. CBIRC has drafted these rules to further alleviate the financing difficulties for micro and small enterprises (MSEs). The rules will guide and encourage commercial banks to thoroughly implement the decisions and work arrangements of the central government on financial support for MSEs and to continuously improve the quality and efficiency of MSE financial services. The deadline of the feedback is May 09, 2020. CBIRC has also issued questions and answers (Q&As) related to these draft rules.
The key points covered in the draft rules include the following:
- Clarifying assessment scope and setting standardized indicators. The rules note that comprehensive assessment shall be made on commercial banks over credit provision, establishment of relevant system and mechanism, implementation of key regulatory policies, innovation of products and services, and supervision and inspection related to MSE financial services, with specific indicators and assessment standards.
- Specifying the assessment mechanism and standardizing the approach and process. CBIRC headquarters and local offices will establish a regulatory assessment mechanism that mainly targets banking institutions with legal person status and conduct annual assessment. The assessment process will include banks’ self-assessment, regulatory information collection, preliminary regulatory assessment, regulatory review, assessment result reporting, filing, and other related work.
- Strengthening the application of assessment results and providing incentives and guidance. The rules specify how the assessment results will be applied and emphasize coordination with relevant policies and measures. The aim is for the regulatory assessment results to provide better incentives for commercial banks to improve MSE financial services.
Related Links (in English and Chinese)
Comment Due Date: May 09, 2020
Keywords: Asia Pacific, China, Banking, SME, Governance, Q&A, CBIRC
Previous ArticleBaFin and Bundesbank Postpone Stress Test Exercise Amid COVID Crisis
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.
ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.
EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).
PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.
The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.
FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.
OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.
To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).
HM Treasury announced that G7 Finance Ministers and Central Bank Governors met ahead of COP 26, the 2021 UN Climate Change Conference, and agreed on green agenda.