General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
June 01, 2018

CBIRC issued "Measures for the Administration of Joint Credit Granting of Banking Financial Institutions (Trial Implementation)." As per the measures, when multiple banking financial institutions grant credit to the same company, they shall establish information-sharing mechanisms to jointly collect, aggregate, and cross-validate corporate operations and financial information. Corporate creditor banking financial institutions shall sign a joint credit member bank agreement and establish a joint credit committee. The measures shall come into force on the date of issue.

The joint credit committee shall monitor the situation concerning the operation and management of the enterprise, operational efficiency, investment in major projects, external guarantees, related transactions, cross-default, and other credit risk related conditions. All members of the joint credit committee shall sign a joint credit framework agreement (hereinafter referred to as the "bank-enterprise agreement") between banks and enterprises. The joint credit committee shall establish joint meeting system and a joint meeting shall be held once every quarter in principle. In the event of a major event, the lead bank or a member bank that accounts for more than one-third of the total amount of the creditor’s right of the member bank shall submit the temporary joint meeting. The joint credit committee shall monitor the situation concerning the operation and management of the enterprise, operational efficiency, investment in major projects, external guarantees, related transactions, cross-default and other credit risk related conditions. 

The measures are intended to curb corporate long-term financing and over-financing and to effectively prevent and control major credit risks. They are formulated in accordance with the laws and regulations of the Banking Supervision and Administration Law of the People's Republic of China and the Law of the People's Republic of China on Commercial Banks. CBIRC intends to evaluate these measures in due course and will revise and improve them as necessary.

 

Related Links (in Chinese)

Effective Date: June 01, 2018

Keywords: Asia Pacific, China, Banking, Credit Risk, Joint Credit Committee, Corporate Debt, CBIRC

Related Articles
News

HKMA Decides to Maintain Countercyclical Capital Buffer at 2.5%

HKMA announced that, in accordance with the Banking (Capital) Rules, the countercyclical capital buffer (CCyB) ratio for Hong Kong remains at 2.5%.

April 16, 2019 WebPage Regulatory News
News

EP Approves Agreement on Package of CRD 5, CRR 2, BRRD 2, and SRMR 2

The European Parliament (EP) approved the final agreement on a package of reforms proposed by EC to strengthen the resilience and resolvability of European banks.

April 16, 2019 WebPage Regulatory News
News

FDIC Consults on Approach to Resolution Planning for IDIs

FDIC approved an Advance Notice of Proposed Rulemaking (ANPR) and is seeking comment on ways to tailor and improve its rule requiring certain insured depository institutions (IDIs) to submit resolution plans.

April 16, 2019 WebPage Regulatory News
News

EP Resolution on Proposal for Sovereign Bond Backed Securities

The European Parliament (EP) published adopted text on the proposal for a regulation of the European Parliament and of the Council on sovereign bond-backed securities (SBBS).

April 16, 2019 WebPage Regulatory News
News

PRA Seeks Input and Issues Specifications for Insurance Stress Tests

PRA announced that it will conduct an insurance stress test for the largest regulated life and general insurers from July to September 2019.

April 15, 2019 WebPage Regulatory News
News

PRA Finalizes Policy on Approach to Managing Climate Change Risks

PRA published the policy statement PS11/19, which contains final supervisory statement (SS3/19) on enhancing banks’ and insurers’ approaches to managing the financial risks from climate change (Appendix).

April 15, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: First Update for April 2019

EBA published answers to nine questions under the Single Rulebook question and answer (Q&A) updates for this week.

April 12, 2019 WebPage Regulatory News
News

EIOPA Statement on Application of Proportionality in SCR Supervision

EIOPA published a supervisory statement on the application of proportionality principle in the supervision of the Solvency Capital Requirement (SCR) calculated in accordance with the standard formula.

April 11, 2019 WebPage Regulatory News
News

FED Updates Form and Supplemental Instructions for FR Y-9C Reporting

FED updated the form and supplemental instructions for FR Y-9C reporting. FR Y-9C is used to collect data from domestic bank holding companies, savings and loan holding companies, U.S intermediate holding companies, and securities holding companies with total consolidated assets of USD 3 billion or more.

April 11, 2019 WebPage Regulatory News
News

OSFI Finalizes Guidelines on Liquidity Adequacy and NSFR Disclosures

OSFI published the final Liquidity Adequacy Requirements (LAR) guideline and the net stable funding ratio (NSFR) disclosure requirements guideline.

April 11, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2920