Featured Product

    CBIRC Guidance on Regulating Non-Licensed Entities in Banking

    December 29, 2018

    CBIRC published guiding opinions on regulating non-licensed organizations in banking financial institutions. The term "banking financial institutions" in this guidance refers to financial institutions such as commercial banks and rural credit cooperatives established in the territory of the People's Republic of China as well as the state development banks and policy banks. The guidance became effective on the date of its issuance—that is, December 28, 2018.

    The guidance consists of 13 articles, covering the basic principles, normative requirements, regulatory responsibilities, and transitional period requirements. Article 1 clarifies that the non-licensed institutions that regulate the banking financial institutions in different places should follow the basic principles and describes these principles. Articles 2 to 7 cover the definition and classification of off-site non-licensees, in accordance with the substance over form principle, according to different degrees of risk spillover and risk management needs. Articles 8 to 10 clarify that after the completion of the rectification, the local regulatory agency assumes the main supervisory responsibility of the licensee in a different place while the "legal person supervision agency" assumes the supervisory duties of the non-operating organization and the regulatory body to strengthen the supervision linkage. Articles 11 through 13 cover the regulatory requirements for the transition period.

    The relevant regulatory requirements for banking financial institutions to establish non-operating institutions abroad are separately provided. Banking financial institutions shall regularly report the relevant situation of non-operating institutions in China to the legal person regulatory agency and the reporting frequency shall not be lower than once a year. The banking financial institutions shall, within three months from the date of issuance of this opinion, report the rectification plan of the non-licensed institutions in different places to the legal person supervision institution and complete the rectification within the transition period after approval. If there is any difficulty, the time limit for rectification may be appropriately postponed with the consent of the "legal person regulatory body." 

     

    Related Links (in Chinese)

    Effective Date: December 28, 2018

    Keywords: Asia Pacific, China, Banking, Guiding Opinion, Regulation of Non-licensed Institutions, Banking Financial Institutions, CBIRC

    Related Articles
    News

    MAS Amends Notice 610 on Reporting Templates for Banks in Singapore

    MAS published amendments to Notices 610 and 1003 related to submission of statistics and returns, along with the reporting templates and frequently asked questions (FAQs) associated with these Notices.

    January 24, 2020 WebPage Regulatory News
    News

    HKMA Updates Policy Module on Supervisory Review Process

    HKMA is issuing, by notice in the Gazette, revised versions of two Supervisory Policy Manual modules as statutory guidelines under section 7(3) of the Banking Ordinance. The Supervisory Policy Manual modules are CA-G-5 on “Supervisory Review Process” and SB-2 on “Leveraged Foreign Exchange Trading.”

    January 24, 2020 WebPage Regulatory News
    News

    PRA Amends Pillar 2 Capital Framework for Banks

    PRA published the policy statement PS2/20 that contains the final amendments to the Pillar 2 framework and provides feedback to responses to the consultation paper CP5/19 on updates related to Pillar 2 capital framework.

    January 23, 2020 WebPage Regulatory News
    News

    FED Proposes to Revise Information Collection Under Market Risk Rule

    FED proposed to revise and extend, for three years, FR 4201, which is the information collection under the market risk capital rule.

    January 22, 2020 WebPage Regulatory News
    News

    HKMA Consults on Stay Rules on Financial Contracts Under FIRO

    HKMA published proposals for making rules related to contractual stays on termination rights in financial contracts for authorized institutions under FIRO or the Financial Institutions (Resolution) Ordinance (Cap. 628).

    January 22, 2020 WebPage Regulatory News
    News

    MAS Amends Notices on Minimum Liquid Asset Requirements for Banks

    MAS published amendments to Notices 1015, 613, and 649 related to the minimum liquid assets (MLA) requirements.

    January 21, 2020 WebPage Regulatory News
    News

    APRA Publishes Submission on Fintech and Regtech

    APRA published its submission, to the Senate Select Committee, on financial technology and regulatory technology.

    January 21, 2020 WebPage Regulatory News
    News

    OSFI to Implement Operational Risk Capital Rules for Banks in Q1 2022

    OSFI decided to move domestic implementation of the revised Basel III operational risk capital requirements from the first quarter of 2021 to the first quarter of 2022.

    January 20, 2020 WebPage Regulatory News
    News

    ECB Consults on Guideline on Threshold for Credit Obligations Past Due

    ECB published a draft guideline, along with the frequently asked questions (FAQs), on the definition of the materiality threshold for credit obligations past due for less significant institutions.

    January 20, 2020 WebPage Regulatory News
    News

    OSFI Consults on Instruction Guide for Termination of Pension Plan

    OSFI is consulting on draft revisions to the instruction guide for termination of a defined benefit pension plan.

    January 20, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4526