Featured Product

    PBC Consults on Measures on Supervision of Financial Holding Companies

    July 26, 2019

    PBC published "Trial Measures" on supervision and management of financial holding companies in China. The deadline for comments on this consultation is August 24, 2019. These measures have been formulated to regulate the behavior of financial holding companies, strengthen the supervision and management of financial holding companies established by non-financial enterprises, and prevent systemic financial risks.

    The Measures define financial holding companies as entities that are legally established and have substantial control over two or more different types of financial institutions. As per PBC, according to the business function attributes, financial institutions include commercial banks (excluding rural banks), financial leasing companies, trust companies, financial asset management companies, securities companies, fund management companies, futures companies, life insurance companies, property insurance companies, reinsurance companies, insurance asset management companies, other financial institutions recognized by the financial management department. PBC will supervise financial holding companies provided that these companies meet certain conditions prescribed under these Measures while the financial regulatory authorities (such as CBIRC and CSRC) supervise the financial institutions controlled by financial holding companies. When the risk occurs, according to the principle of “who is supervised and who is responsible,” the corresponding regulatory body will take the lead in risk disposal. 

    The Measures consist of seven chapters, which cover general provisions, establishment and licensing, corporate governance and synergies, consolidated management and risk management, supervision and management, legal liability, and supplementary provisions. The Measures stipulate that a financial holding company should strengthen the management of related party transactions, its intra-group transactions with the financial institutions it controls, the financial institutions it holds, and the financial institutions and other institutions within the group, as well as with other related parties. The Measures also factor in a transition period for certain "enterprise groups" that have been already formed. At the end of the transition period, these enterprises should meet the regulatory requirements of the Measures and be checked and accepted by the respective "financial management department."

     

    Comment Due Date: August 24, 2019

    Keywords: Asia Pacific, China, Banking, Insurance, Securities, Financial Holding Companies, Systemic Risk, Financial Stability, Governance, PBC

    Featured Experts
    Related Articles
    News

    EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Reports Assess Impact of Pandemic on Financial Stability

    FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.

    November 17, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Implementation of Capital Review Changes

    RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.

    November 17, 2020 WebPage Regulatory News
    News

    IASB Announces Andreas Barckow as the New Chair from July 2021

    The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.

    November 17, 2020 WebPage Regulatory News
    News

    HKMA Consults on Capital Rules for Bank Equity Investments in Funds

    HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.

    November 17, 2020 WebPage Regulatory News
    News

    ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA

    ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).

    November 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6153