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
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.