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
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
EC Mandates ESAs to Propose Amendments to SFDR Technical Standards
The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.
EBA Examines Supervisory Practices, Issues Deposits Reporting Template
The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),
SNB Updates NSFR Forms and FINMA Consults on Operational Risk Circular
The Swiss National Bank (SNB) published Version 1.2 of the reporting forms (NSFR_G and NSFR_P) on the net stable funding ratio (NSFR) of banks, along with the associated documentation.
US Agency Publications Address Basel, Reporting, and CECL Developments
The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances
