Featured Product

    PBC Updates Focus on Macro-Prudential Policy and Small Business Loans

    January 01, 2022

    The People’s Bank of China (PBC) published the guidelines, and the associated questions and answers (Q&A), that set out elements for establishing and improving the macro-prudential policy framework in China. The guidelines define the relevant concepts of macro-prudential policy, including macro-prudential policy framework, systemic financial risks, and macro-prudential management working mechanism. The policy framework guidelines cover aspects such as financial risk assessment, macro-prudential policy tools, transmission mechanisms, and governance mechanisms. The guidelines also set out the requirements to implement macro-prudential policies and explain the coordination among macro-prudential and other policies. Additionally, PBC announced the modified arrangements for two of the monetary policy instruments that provide direct support to micro and small businesses (MSBs), from January 01, 2022.

    One of these instruments supports deferred repayments on inclusive micro and small business loans while the other instrument supports inclusive unsecured micro and small business loans. The instrument supporting the deferred repayments on inclusive micro and small business loans will turn into the instrument supporting inclusive micro and small business loans. In line with the market-based principles, financial institutions and businesses may independently negotiate their terms on principal and interest repayments. From the beginning of 2022 to end of June 2023, for inclusive micro and small business loans issued by locally incorporated banks, PBC will provide funds in the amount of 1% of their incremental balance of these loans on a quarterly basis. Also, from the beginning of 2022, the support plan for inclusive unsecured micro and small business loans will be incorporated into the management of central bank lending to support rural development and micro and small businesses. The quota of RMB 400 billion of central bank lending, originally arranged for supporting inclusive unsecured micro and small business loans, may be used on a rolling basis. If necessary, PBC can further increase the quota.

    Keywords: Asia Pacific, China, Banking, Guidelines, Systemic Risk, Macro Prudential Policy, Q&A, SME, Lending, Loan Repayment, PBC

    Featured Experts
    Related Articles
    News

    EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation

    The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).

    May 23, 2022 WebPage Regulatory News
    News

    EBA Publishes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.

    May 23, 2022 WebPage Regulatory News
    News

    EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance

    The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks

    May 20, 2022 WebPage Regulatory News
    News

    NGFS Report Explores Quantification of Climate Risk Differentials

    The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations

    May 19, 2022 WebPage Regulatory News
    News

    EC Publishes Results on Review of Web Accessibility Directive

    The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.

    May 19, 2022 WebPage Regulatory News
    News

    MAS Consults on Adjustment Spreads for Conversion of SOR Contracts

    The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.

    May 18, 2022 WebPage Regulatory News
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8206