PBC published a statement on its Working Conference held in Beijing during January 02-03, 2020. The statement summarizes the main done in 2019 and outlines the work priorities for 2020. According to the meeting, in 2019, PBC resolutely guarded against major financial risks and worked toward continuous improvement of financial management and services. In 2020, work on recovery and resolution mechanism, preparation for macro-prudential stress tests, development of bond markets, and strengthening of the governance structure of policy banks will be some of the key areas in focus for the financial sector.
With respect to the work in 2020, the meeting stressed on the following key points:
- To prevent and resolve major financial risks. PBC will establish and improve the recovery and resolution mechanism, loss-sharing mechanism, and incentive and restraint mechanism of financial institutions. It will continue to carry out special rectification of Internet financial risks and establish a long-term supervision mechanism.
- Focus on alleviating the difficulty of financing for small and micro enterprises. PBC will improve the incentive mechanism for loan appraisal of small and micro enterprises and implement the credit due diligence and exemption system.
- To accelerate the improvement of the macro-prudential management framework. Macro-prudential stress test system will be prepared. PBC will speed up the establishment and improvement of a macro-prudential management mechanism for cross-border capital flows that integrate local and foreign currencies. It will also gradually expand the scope of macro-prudential policies, organize the implementation of systemically important bank assessments, and promote the implementation of supervision and management measures for financial holding companies.
- To deepen financial reform of financial markets and financial institutions. PBC will actively develop the bond market and strengthen the overall supervision of financial infrastructure. It will work to deepen the reform of small and medium banks and rural credit cooperatives, in addition to further improving the governance structure of policy banks.
- To strengthen research and development and application of financial technology. PBC will implement the development plan for fintech and strengthen rules for fintech supervision. IT will continue to steadily advance the development of digital currencies and further expand the application field of Global Legal Person Identification Code (LEI) in China.
- To comprehensively improve the level of financial services and financial management. PBC plans to deepen the pilot projects of regional financial reforms such as science and technology finance, green finance, inclusive finance, financial innovation, and regional coordinated development. It also plans to promote the modernization of central bank financial governance and further strengthen the anti-money laundering supervision.
Keywords: Asia Pacific, China, Banking, Securities, Macro-prudential Policy, Stress Testing, SME, Fintech, LEI, Resolution Framework, PBC
Previous ArticleOSFI Updates Manual of Reporting Forms and Instructions for Insurers
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.