GLEIF Discusses Chinese Roadmap for LEI Adoption
GLEIF discussed the regulatory roadmap of China to promote nationwide adoption of the Legal Entity Identifier (LEI). The regulatory roadmap is part of the "One Belt One Road" initiative and unveils the national plans to increase LEI issuance by at least 170% between the end of 2020 and the end of 2022. The Chinese regulatory authorities are proactively driving LEI usage and have set ambitious plans for substantial near-term increases in LEI volume.
In the fourth quarter of 2020, four financial regulators (PBC, CBIRC, CSRC, and the State Administration of Foreign Exchange) in China released a report detailing the LEI implementation roadmap, which looks ahead to 2022. The report outlines the general objective of the roadmap and details key LEI implementation milestones over the next two years. GLEIF understands that the general objective of the roadmap is to establish a comprehensive LEI usage policy system across the financial system in China, in line with the international standards, by the end of 2022. By the end of 2020, the roadmap provides for proposed LEI application rules in scenarios such as RMB cross-border payments, digital RMB cross-border business, qualified foreign institutional investor and RMB qualified foreign institutional investor access, derivatives trading, securities trading, and listed company supervision. Then, by the end of 2021, the roadmap mentions proposed LEI application rules in areas such as the financial market transaction reporting system, credit rating, and application of special institutional codes by overseas institutions. By the end of 2022, the total LEI volume in Mainland China is expected to reach 100,000 and China expects to use LEI in scenarios such as digital identification of cross-border legal persons and to establish a mechanism for commercially sustainable operation of LEI.
GLEIF also welcomed the news that Chinese Financial Certification Authority (CFCA) has launched the first commercial demonstration of LEIs embedded within digital certificates. CFCA has simultaneously become the first Certification Authority to assume a Validation Agent role within the Global LEI System. The combined sum of these two initiatives (roadmap and demonstration of LEIs) is significant. This shows an advanced level of proactivity from regulatory authorities, which is driving LEI issuance to support financial services and banking ecosystems, simplify international trade, and enhance digital identity across the region.
Related Links
Keywords: International, Asia Pacific, China, Banking, Insurance, Securities, LEI, GLEIS, Roadmap, FCA, PBC, CBIRC, CSRC, GLEIF
Related Articles
ECB Amends Guideline on Temporary Collateral Easing Measures
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 Releases Report on Artificial Intelligence Governance Principles
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 to Increase Focus on Suptech and Regtech Cloud Adoption
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 Consults on Improving Transparency in Secondary Markets for NPLs
EC launched a targeted consultation to improve transparency and efficiency in the secondary markets for nonperforming loans (NPLs).
BIS and Nordic Central Banks Launch Innovation Hub in Stockholm
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.
FDIC Tech Sprint Aims to Explore Technologies to Reach Unbanked
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 Releases Sustainable Finance Taxonomy Compass
EC released the EU Taxonomy Compass, which visually represents the contents of the EU Taxonomy starting with the EU Taxonomy Climate Delegated Act.
FDIC Proposes Amendments to Real Estate Lending Standards
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 to Consider Liquidity Risk in Stress Test for 2021
EIOPA published its annual report, which sets out the work done in 2020 and indicates the planned work areas for the coming months.
ESRB Paper Discusses Measurement of Impact of Bank Failure via Lending
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.
