CBIRC Notice on Use of Credit Risk Mitigation Tools in Insurance
CBIRC published a notice on "participation of insurance funds in credit risk mitigation tools and credit protection tools." Credit risk mitigation tools and credit protection instruments referred to in this notice refer to credit derivatives used to manage credit risk. The notice aims to allow and regulate the participation of insurance funds in the business of credit derivatives. It is intended to further enrich the use of insurance funds and provide hedging measures for credit risk management.
The notice defines the purpose of participation. It is stipulated that the participation of insurance funds in the credit derivative products business is limited to hedging risks and may not be used as a credit risk-bearer. The notice also provides clarification regarding the qualifications of the participants. The insurance institutions need to have the ability to use derivatives and credit risk management capabilities to participate in the credit derivatives business. The notice mentions that insurance institutions should formulate corresponding management systems and operational procedures, monitor and regularly assess risks, and submit monthly, quarterly, and annual reports to CBIRC.
Related Links (in Chinese)
Keywords: Asia Pacific, China, Insurance, Credit Derivatives, Credit Risk Mitigation Tools, Credit Risk, Hedging, CBIRC
Related Articles
|
News
EBA Single Rulebook Q&A: Second Update for October 2019EBA updated the Single Rulebook question and answer (Q&A) tool with answers to ten questions.
October 11, 2019
WebPage
Regulatory News
|
|
News
OCC Revises Minimum Threshold for Banks to Conduct Stress TestsOCC issued the final rule that amends its company-run stress testing requirements under the 12 CFR 46 in Code of Federal Regulations.
October 10, 2019
WebPage
Regulatory News
|
|
News
US Agencies Update Management Interlock Rules Under DIMIAUS Agencies (FDIC, FED, and OCC) issued a final rule that increases the thresholds in the major assets prohibition for management interlocks for purposes of the Depository Institution Management Interlocks Act (DIMIA).
October 10, 2019
WebPage
Regulatory News
|
|
News
US Agencies Finalize Rules to Closely Match Bank Risk ProfilesUS Agencies (OCC, FED, and FDIC) finalized rules that tailor the regulations for domestic and foreign banks to more closely match their risk profiles.
October 10, 2019
WebPage
Regulatory News
|
|
News
CPMI-IOSCO and FSB on Governance Arrangements for OTC DerivativesCPMI and IOSCO published a report that identifies key criteria, functions, and bodies for the governance arrangements.
October 09, 2019
WebPage
Regulatory News
|
|
News
EIOPA Launches Field Test on Templates Under 2020 Solvency II ReviewEIOPA, as part of the 2020 Solvency II reporting and disclosure review, launched a field test on the revised and newly proposed reporting templates.
October 09, 2019
WebPage
Regulatory News
|
|
News
US Agencies Adopt Rule on Appraisals for Real Estate TransactionsUS Agencies (FDIC, FED, and OCC) adopted the final rule to amend regulations requiring appraisals of real estate for certain transactions
October 08, 2019
WebPage
Regulatory News
|
|
News
US Agencies Finalize Amendments to Simplify Volcker RuleUS Agencies (CFTC, FDIC, FED, OCC, and SEC) finalized amendments to the regulations implementing section 13 of the Bank Holding Company Act, also known as the Volcker Rule.
October 08, 2019
WebPage
Regulatory News
|
|
News
EC Report Explores Application and Challenges of Blockchain TechnologyThe Joint Research Center of EC published a report exploring the challenges and impact of distributed ledger technologies.
October 08, 2019
WebPage
Regulatory News
|
|
News
BIS and SNB Sign Agreement on Innovation Hub Center in SwitzerlandBIS and SNB signed an operational agreement on the BIS Innovation Hub Center in Switzerland.
October 08, 2019
WebPage
Regulatory News
|
