CBIRC is consulting on the interim measures for the implementation of recovery and resolution plans of bancassurance institutions. The bancassurance institutions, as mentioned in these measures, refer to financial institutions established within the territory of the People’s Republic of China, such as commercial banks, rural credit cooperatives, and other financial institutions that accept public deposits, in addition to the financial asset management companies, financial leasing companies, and insurance companies. Comments can be provided on these interim measures by May 25, 2021. These measures shall come into force on the date of promulgation.
The measures cover basic principles behind establishment of a recovery and resolution plan mechanism, formulation of recovery and resolution plans, supervision and administration of such plans, and supplementary requirements or provisions related to these plans. The measures also detail the scope of application, internal governance structure of financial institutions, and working mechanism between supervisory departments. The measures set out objectives for development of recovery and resolution plans, content to be included in the recovery and resolution plans, and implementation process of recovery and resolution plans. The measures stipulate that institutions meeting certain thresholds should formulate recovery and resolution plans. As per the measures, the regulatory authority can also designate institutions that need to formulate recovery and resolution plans based on factors such as business characteristics, risk status, and spillover effects. If the previously issued relevant measures are inconsistent with this measure, they shall be implemented in accordance with the provisions of these measures.
Related Links (in Chinese)
Comment Due Date: May 25, 2021
Effective Date: Promulgation Date
Keywords: Asia Pacific, China, Banking, Insurance, Resolution Framework, Resolution Planning, Recovery Planning, Q&A, CBIRC
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