CBIRC Sets Out Draft Rules for Responsibilities of Supervisory Bureaus
CBIRC is consulting on rules regarding the regulatory responsibilities of its "dispatched agencies" for the supervision of banking and insurance institutions. The dispatched agencies/institutions include supervisory bureaus stationed in provinces (autonomous regions and municipalities directly under the central government) and cities with separate plans (CBIRC Bureau), the supervisory branch of the cities (CBIRC Sub-Bureau), and the supervision groups set up in counties. The rules stipulate that CBIRC shall exercise vertical leadership over these dispatched offices. The "banking insurance financial institutions," as mentioned in these provisions, refer to, among others, commercial banks, policy banks, development banks, rural cooperative banks, village banks, foreign bank branches, foreign banks representative offices, rural credit cooperatives, rural mutual funds cooperatives, loan companies, insurance group (holding) companies, insurance companies, and insurance companies, which are regulated by the banking insurance regulatory agencies according to law. The comment period for this consultation ends on July 11, 2021.
The rules stipulate that CBIRC Bureau and Sub-Bureau shall be responsible for the direct supervision of banking and insurance financial institutions in their jurisdictions in accordance with laws, administrative regulations, and the provisions of CBIRC. The CBIRC shall, in accordance with laws and regulations, exercise unified supervision and administration over the banking and insurance industries throughout the country. The CBIRC may, according to actual needs, specify the institutions directly supervised by CBIRC and publish the list on the official website, along with the regulatory responsibility units of legal persons of financial institutions in the banking and insurance industries. According to the draft regulations, dispatched institutions shall perform their duties of supervision of banking and insurance sectors within their jurisdictions, safeguard the legal rights and interests of the parties, promote the legal and stable operation of the banking and insurance sectors in their jurisdictions, and prevent and resolve financial risks.
Dispatched institutions shall, in accordance with the relevant regulations, collect relevant data and information of banking and insurance financial institutions as well as track, monitor, and examine the operation of the banking and insurance industry within their jurisdiction. Dispatched institutions shall also report the operation and risks of the banking and insurance sector within their jurisdiction. Article 10 of the draft regulation stipulates that "CBIRC and its branches" shall supervise and manage the corporate governance, risk management, internal control, capital adequacy, solvency, asset quality, business activities, information disclosure, information technology and third-party cooperation of the banking and insurance financial institutions within their jurisdiction in accordance with the law. The specific supervisory matters shall be determined in accordance with the laws, administrative regulations, and the relevant provisions of the CBIRC. After these regulations come into effect, the interim provisions on the division of supervisory responsibilities and working procedures of CBRC (published in 2004) and the regulatory responsibilities of dispatched institutions of CIRC (published in 2016) shall be repealed.
Related Links (in Chinese)
Comment Due Date: July 11, 2021
Keywords: Asia Pacific, China, Banking, Insurance, Dispatched Institutions, Supervisory Bureaus, Banking Supervision, CBIRC
Previous Article
ESRB Recommends Reciprocation of Certain Macroprudential MeasuresRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.