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
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.
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.
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.
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)
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).
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.
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.
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.
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)
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.
