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.
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Comment Due Date: July 11, 2021
Keywords: Asia Pacific, China, Banking, Insurance, Dispatched Institutions, Supervisory Bureaus, Banking Supervision, CBIRC
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