CBIRC and PBC Issue Measures to Identify Systemically Important Banks
CBIRC and PBC jointly issued measures for the assessment and identification of systemically important banks (SIBs) in China. The measures specify the method, scope, and procedures for this assessment and establish a four-dimensional assessment indicator system of systemic banks, with focus on size, correlation, substitutability, and complexity. In specific assessment processes, data reporting templates and instructions will be sent to banks that participate in the assessment, with a view to collecting the data for assessment. In the future, work will begin on formulating additional regulatory requirements that are to be imposed on the identified systemically important banks.
As per the stipulated process, quantitative assessment indicators will be used to calculate the systemic importance score of banks that participate in the assessment; those scoring as high as 100 will be included in the initial list of systemically important banks. Then, regulatory judgment will be made after taking other quantitative and qualitative information into consideration to comprehensively assess the systemic importance of the banks. For this exercise, the data of participating banks will be collected and analyzed, post which the initial list of systemically important banks will be proposed. The scope of participating banks is to be determined every year. Finally, any necessary adjustments will be made to the initial list based on supervisory judgments. The final list of systemically important banks will be confirmed by the Financial Stability and Development Committee (FSDC) of the State Council and jointly released by PBC and CBIRC.
Going forward, PBC will work with CBIRC to formulate additional regulatory requirements for systemically important banks in China. The regulatory requirements are expected to be imposed on systemically important banks with regard to metrics such as additional capital, leverage ratio, large exposure, corporate governance, recovery and resolution plans, information disclosure, and data reporting. Moreover, measures will be taken to establish an early correction mechanism to motivate systemically important banks to reduce complexity and systemic risks, establish and improve a sound internal capital constraint mechanism to strengthen banks’ capacity of guarding against risks and absorbing losses, and enhance their self-rescue capability to prevent the “too big to fail” risks. For systemically important banks of different groups and types, targeted policies, as well as differentiated schemes for additional regulation, will be implemented based on their operational characteristics and systemic risks. Meanwhile, a reasonable transition period will be arranged to ensure that the policies produce neutral effects and are implemented in a sound and orderly manner.
Related Links (in Chinese)
Keywords: Asia Pacific, China, Banking, Systemic Risk, Too Big to Fail, Q&A, D-SIBs, Reporting, CBIRC, PBC
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
BIS, SNB, and SIX Announce Successful Completion of CBDC POCRelated Articles
EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
BIS Hub Updates Work Program for 2022, Announces New Projects
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
EIOPA Consults on Review of Securitization Framework in Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
UK Authorities Issue Regulatory and Reporting Updates for Banks
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
BaFin Consults on Resolvability Requirements for Resolution Planning
The Federal Financial Supervisory Authority of Germany (BaFin) proposed to amend the “Capital Investment Conduct And Organization Ordinance” and issued a draft circular on the minimum resolvability requirements for resolution planning.
EBA Consults on Certain Standards and Guidelines Under CRR and BRRD
The European Banking Authority (EBA) proposed guidelines, for the resolution authorities, on the publication of the write-down and conversion and bail-in exchange mechanic, with the comment period ending on September 07, 2022.
OJK Publishes Regulatory Updates for Financial Sector Entities
The Financial Services Authority of Indonesia (OJK) is strengthening cooperation with the Australian Prudential Regulation Authority (APRA) and the Japanese Financial Services Agency (JFSA)
EU Publishes Rules on DLT and Data Governance
The European Parliament and the Council published Regulation 2022/868 on European data governance (Data Governance Act).
EBA Publishes Phase 2 of Reporting Framework 3.2
The European Banking Authority (EBA) published phase 2 of its reporting framework 3.2. The technical package supports the implementation of the updated reporting framework by providing standard specifications