CBIRC Clarifies Derivatives Rules, Notes Progress in Bank Governance
The China Banking and Insurance Regulatory Commission (CBIRC) published a Notice on application of rules related to derivatives counterparties, guiding opinions in support of technological innovations, and an update on the status of corporate governance in the banking and insurance sectors. The recently published Notice contains supplementary information for the application of the rules for measurement of default risk assets of derivatives counterparties. The rules stipulate that "qualified transactions between commercial banks and financial institutions can manage risk exposures and withdraw capital on a net basis." The Notice also aims to clarify the scope of the qualified master agreement and improve the "identification standards for margin derivatives transactions."
In another development, CBIRC published “Guiding Opinions on Supporting High-level Technological Self-reliance in the Banking and Insurance Industry,” along with the associated questions and answers (Q&A).In the "Guiding Opinion," CBIRC calls for more financial support for technological innovations. CBIRC also notes that it is necessary to explore new models of technological credit services and encourage the use of more flexible interest rate pricing and interest repayment methods, also stating that the regulator will actively support the direct financing of technology companies.
Finally, in the statement on corporate governance, CBIRC explained that it has achieved improvements in corporate governance in the banking and insurance sectors. In the past two years, CBIRC has steadily promoted the implementation of "Three-year Action Plan for Improving Corporate Governance in the Banking and Insurance Industry (2020-2022).” The regulator has focused on strengthening the development of regulations, continuously deepening the reform of corporate governance, effectively preventing and resolving financial risks, and promoting the steady improvement of the quality of corporate governance in the banking and insurance industry. Going forward, CBIRC plans to further strengthen supervision and reform the corporate governance of institutions by regulating the behavior and related transactions of major shareholders, optimizing the structure and operation mechanism of the board of directors, and improving the effectiveness of supervision.
Related Links (in Chinese)
- Press Release on Rules Related to Derivative Counterparties
- Q&A on Rules Related to Derivative Counterparties
- Press Release on Guiding Opinion
- Guiding Opinion
- Q&A on Guiding Opinion
- Statement on Corporate Governance
Keywords: Asia Pacific, China, Banking, Derivatives, Regulatory Capital, Default Risk, Counterparty Credit Risk, Master Netting Agreement, Netting Contract, Fintech, Governance, CBIRC
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.

Trevor Howes
IFRS 17 technical advisor; AXIS actuarial modeling system expert; extensive experience in life insurance and life reinsurance, with focus on modeling, valuation, and financial reporting
Previous Article
BoE Publishes Policy Statement on Approach to Setting MRELRelated 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.
EP Reaches Agreement on Corporate Sustainability Reporting Directive
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
PRA Consults on Model Risk Management Principles for Banks
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
EC Regulation Amends Standards for Calculating Credit Risk Adjustments
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
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.
EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
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.
BCBS Issues Climate Risk Principles while HKMA Expresses Its Support
The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.