CBIRC Notice on Use of Credit Risk Mitigation Tools in Insurance

By Regulatory News

May 15, 2019

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

BoE Issues Statement on Adoption of Risk-Free Rates in Sterling Market

David Hardoon of MAS Examines Fintech as Solution for Risk Management


News FSB Examines Financial Stability Aspects of Bigtech and Cloud Services FSB published two reports that consider the financial stability implications from the offering of financial services by bigtech firms and the adoption of cloud computing and data services across a range of functions at financial institutions. December 09, 2019 WebPage Regulatory News
News APRA Specifies Capital Treatment of Equity Investments in ABGF APRA published a letter to the authorized deposit-taking institutions outlining the regulatory capital treatment of their equity investments in the Australian Business Growth Fund (ABGF). December 09, 2019 WebPage Regulatory News
News EBA Publishes Action Plan on Sustainable Finance EBA published the Action Plan on sustainable finance for banks. December 06, 2019 WebPage Regulatory News
News EBA Single Rulebook Q&A: Second Update for December 2019 EBA updated the Single Rulebook question and answer (Q&A) tool with answers to three questions under the Capital Requirements Regulation (CRR) and the second Payment Services Directive (PSD 2). December 06, 2019 WebPage Regulatory News
News APRA Publishes Proposal to Increase Transparency of Banking Data APRA proposed to substantially increase the volume and breadth of data it makes publicly available on authorized deposit-taking institutions, including banks, credit unions, and building societies. December 05, 2019 WebPage Regulatory News
News ESMA Consults on Guide to Internal Controls for Credit Rating Agencies ESMA launched a consultation on the guidelines on internal controls for credit rating agencies (CRAs). December 05, 2019 WebPage Regulatory News
News EU Finalizes Directive and Prudential Rules for Investment Firms EU published, in the Official Journal of the European Union, the Directive (2019/2034) and Regulation (2019/2033) on the prudential requirements and supervision of investment firms. December 05, 2019 WebPage Regulatory News
News OSFI Revises Guideline on Principles for Management of Liquidity Risk OSFI finalized Guideline B-6 on the principles for the management of liquidity risk. December 05, 2019 WebPage Regulatory News
News ESAs Publish Draft Amendments to Bilateral Margin Requirements ESAs published joint draft regulatory technical standards to amend the Delegated Regulation on the risk mitigation techniques for non-cleared over-the-counter (OTC) derivatives as well as a joint statement on the introduction of fallbacks in OTC derivative contracts and the requirement to exchange collateral. December 05, 2019 WebPage Regulatory News
News RBNZ Releases Final Decisions Related to Capital Review for Banks RBNZ released a paper that sets out its final decisions following the comprehensive review of its capital framework for banks, known as the Capital Review. December 05, 2019 WebPage Regulatory News

RESULTS 1 - 10 OF 4289