General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
December 29, 2017

CBRC published a notice on the Administrative Measures to strengthen the capital supervision of financial asset management companies and to safeguard the stable operation of these asset companies. These measures enter into force on January 01, 2018. The measures have been formulated in accordance with the "Regulations of the People's Republic of China on Banking Supervision and Administration" and the "Regulations of the Financial Assets Management Companies."

The notice covers general provisions and specifies that these measures shall apply to a group of assets companies and their affiliates. The key topics covered in this capital approach include capital adequacy ratio calculation and regulatory requirements, risk-weighted asset measurement, group minimum capital requirements measurement, group regulatory requirements for capital, supervision, information disclosure, and by-laws. CBRC has set up a capital regulatory framework for asset-backed companies and has explored the formation of a system of capital measurement and regulatory rules applicable to asset-backed companies. However, the existing regulatory requirements are relatively fragmented and not systematic enough. Therefore, it became necessary to formulate a capital management approach specifically for asset-backed companies. Emphasis is on the following five aspects:

  • First, the bank sets appropriate regulatory standards for capital adequacy in light of the characteristics of the business operations of asset-backed companies, clarifies the regulatory requirements for Pillar II and regulatory requirements for information disclosure, and strengthens the regulatory oversight and market restraint.
  • Second, by setting a differentiated asset risk-weight, asset companies are guided to focus on the main businesses of non-performing assets, in accordance with the principle of "relative concentration and highlighting the major businesses."
  • The third is to impose prudential supervision requirements on non-financial subsidiaries that are not regulated but have investment and financing functions and high leverage in the assets and corporate groups to ensure full coverage of capital controls.
  • The fourth is to leverage the regulatory indicators and requirements into the "capital approach" to form a unified capital regulatory framework.
  • Fifth, it requires the parent companies and related subsidiaries of the Group to include credit risk, market risk, and operational risk in the scope of capital measurement—and in combination with the actual selection of the appropriate risk measurement method by the asset company.

 

Related Links (in Chinese)

Effective Date: January 01, 2018

Keywords: Asia Pacific, China, Securities, Asset Management Companies, Regulatory Capital, Disclosures, Proportionality, CBRC

Related Articles
News

HKMA Decides to Maintain Countercyclical Capital Buffer at 2.5%

HKMA announced that, in accordance with the Banking (Capital) Rules, the countercyclical capital buffer (CCyB) ratio for Hong Kong remains at 2.5%.

April 16, 2019 WebPage Regulatory News
News

EP Approves Agreement on Package of CRD 5, CRR 2, BRRD 2, and SRMR 2

The European Parliament (EP) approved the final agreement on a package of reforms proposed by EC to strengthen the resilience and resolvability of European banks.

April 16, 2019 WebPage Regulatory News
News

FDIC Consults on Approach to Resolution Planning for IDIs

FDIC approved an Advance Notice of Proposed Rulemaking (ANPR) and is seeking comment on ways to tailor and improve its rule requiring certain insured depository institutions (IDIs) to submit resolution plans.

April 16, 2019 WebPage Regulatory News
News

EP Resolution on Proposal for Sovereign Bond Backed Securities

The European Parliament (EP) published adopted text on the proposal for a regulation of the European Parliament and of the Council on sovereign bond-backed securities (SBBS).

April 16, 2019 WebPage Regulatory News
News

PRA Seeks Input and Issues Specifications for Insurance Stress Tests

PRA announced that it will conduct an insurance stress test for the largest regulated life and general insurers from July to September 2019.

April 15, 2019 WebPage Regulatory News
News

PRA Finalizes Policy on Approach to Managing Climate Change Risks

PRA published the policy statement PS11/19, which contains final supervisory statement (SS3/19) on enhancing banks’ and insurers’ approaches to managing the financial risks from climate change (Appendix).

April 15, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: First Update for April 2019

EBA published answers to nine questions under the Single Rulebook question and answer (Q&A) updates for this week.

April 12, 2019 WebPage Regulatory News
News

EIOPA Statement on Application of Proportionality in SCR Supervision

EIOPA published a supervisory statement on the application of proportionality principle in the supervision of the Solvency Capital Requirement (SCR) calculated in accordance with the standard formula.

April 11, 2019 WebPage Regulatory News
News

FED Updates Form and Supplemental Instructions for FR Y-9C Reporting

FED updated the form and supplemental instructions for FR Y-9C reporting. FR Y-9C is used to collect data from domestic bank holding companies, savings and loan holding companies, U.S intermediate holding companies, and securities holding companies with total consolidated assets of USD 3 billion or more.

April 11, 2019 WebPage Regulatory News
News

OSFI Finalizes Guidelines on Liquidity Adequacy and NSFR Disclosures

OSFI published the final Liquidity Adequacy Requirements (LAR) guideline and the net stable funding ratio (NSFR) disclosure requirements guideline.

April 11, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2920