Featured Product

    CBIRC Consults on Guidelines on Corporate Governance

    January 29, 2021

    CBIRC issued draft guidelines for banks and insurers to improve quality and efficiency of corporate governance. The guidelines specify that good corporate governance involves clear equity structure, sound organizational structure, clear boundaries of duties and high standards of professional ethics, effective risk management and internal controls, sound information disclosure mechanism, reasonable incentive and restraint mechanism, good stakeholder protection mechanism, and strong sense of social responsibility. The guidelines have been set out in response to the advocacy requirements of the G20/OECD Corporate Governance Principles. The comment period for the draft guidelines is open until March 01, 2021.

    The supplementary provisions of the guideline explain that commercial banks, insurance companies, and bancassurance institutions, as mentioned in these "standards" refer to large state-owned commercial banks in the form of joint stock limited companies, national joint-stock commercial banks, urban commercial banks, private banks, rural commercial banks, foreign banks, insurance group (holding) companies, property insurance companies, reinsurance companies, and life insurance companies. On issuance of the final corporate governance guidelines, the Guidelines on Corporate Governance of Commercial Banks and the Guiding Opinions on Regulating the Governance Structure of Insurance Companies (for Trial Implementation) shall be repealed. The draft guidelines on corporate governance stipulate some of the following key requirements for banking and insurance institutions:

    • The shareholders, directors, supervisors, and senior management personnel of these institutions shall abide by laws and regulations, regulatory provisions, and the company’s articles of association and perform their duties in accordance with their respective responsibilities, coordinate operations, and effective checks and balances.
    • Banking and insurance institutions shall, in accordance with regulatory provisions, establish a comprehensive risk management system that covers all business processes and operational links and matches the risk status of the company.
    • Institutions shall mandate in the company's articles of association that major shareholders need to make a written long-term commitment to the institution for capital supplementation as part of the institution's capital planning; the company's articles of association shall stipulate that the company needs to formulate a prudent profit distribution plan.
    • Banking and insurance institutions shall disclose important company information, including financial status, major risk information, and corporate governance information, in accordance with relevant regulatory provisions. The information disclosed by a bancassurance institution shall be true, accurate, complete, timely, concise and clear, and easy to understand. There shall be no false records, misleading statements or major omissions.
    • Regulatory agencies shall regularly conduct on-site or off-site evaluations on the corporate governance of the covered institutions. On communication of the regulator feedback on the results of the corporate governance regulatory assessment, the institution shall promptly report the relevant situation to the board of directors, the board of supervisors, and senior management and make timely corrections in accordance with the regulatory requirements.

     

    Related Links (in Chinese)

    Comment Due Date: March 01, 2021

    Keywords: Asia Pacific, China, Banking, Insurance, Governance, Disclosure, Internal Control, Disclosures, Operational Risk, CBIRC

    Related Articles
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514