CBIRC published interim measures for supervision and management of financial leasing companies, along with questions and answers (Q&As) related to the measures. The interim measures clarify the business scope, scope of lease items, and prohibited businesses or activities of the financial leasing companies. The measure shall be implemented from the date of issuance. Additionally, CBIRC issued provisions on implementation procedures of administrative licensing for financial institutions supervised and managed by CBIRC. The provisions cover main procedural issues involved in the process of administrative licensing. The provisions shall come into force as of July 01, 2020.
The interim measures require that the financial leasing companies improve corporate governance, internal control, risk management, and related-party transactions. It strengthens the constraints of regulatory indicators. Some new prudential supervision indicators have been set up, including the proportion of financial leasing assets, fixed income securities investment, and business concentration to promote financial leasing companies to focus on their main businesses and enhance their risk prevention and control capabilities. The measures also set out provisions related to supervision, administration, and legal responsibilities. In the next step, CBIRC will focus to implement the measures and strengthen supervision and guidance.
Related Links (in Chinese and English)
- Notification on Interim Measures
- Notification on Provisions
- Interim Measures
- Q&As on Interim Measures
Effective Date: Date of Issuance (Interim Measures) and July 01, 2020 (Provisions)
Keywords: Asia Pacific, China, Banking, Insurance, Leasing, Financial Leasing, Administrative Licensing, Q&A, CBIRC
Previous ArticleHKMA Revises Supervisory Policy Module on Recovery Planning of Banks
The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.
The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).
The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.
The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.
The Hong Kong Monetary Authority (HKMA) is consulting on the draft Financial Institutions (Resolution) Ordinance (Cap. 628), or FIRO, Code of Practice chapter on liquidity and funding in resolution, until March 14, 2022.
The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.
The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).