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
ECB published Guideline 2021/975, which amends Guideline ECB/2014/31, on the additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral.
EIOPA published a report, from the Consultative Expert Group on Digital Ethics, that sets out artificial intelligence governance principles for an ethical and trustworthy artificial intelligence in the insurance sector in EU.
HKMA published the seventh and final issue of the Regtech Watch series, which outlines the three-year roadmap of HKMA to integrate supervisory technology, or suptech, into its processes.
EC launched a targeted consultation to improve transparency and efficiency in the secondary markets for nonperforming loans (NPLs).
BIS, Danmarks Nationalbank, Central Bank of Iceland, Norges Bank, and Sveriges Riksbank launched an Innovation Hub in Stockholm, making this the fifth BIS Innovation Hub Center to be opened in the past two years.
FDITECH, the technology lab of FDIC, announced a tech sprint that is designed to explore new technologies and techniques that would help expand the capabilities of community banks to meet the needs of unbanked individuals and households.
EC released the EU Taxonomy Compass, which visually represents the contents of the EU Taxonomy starting with the EU Taxonomy Climate Delegated Act.
FDIC is seeking comments on a rule to amend the interagency guidelines for real estate lending policies—also known as the Real Estate Lending Standards.
EIOPA published its annual report, which sets out the work done in 2020 and indicates the planned work areas for the coming months.
The ESRB paper that presents an analytical framework that assesses and quantifies the potential impact of a bank failure on the real economy through the lending function.