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
SEC Finalizes Capital and Margin Requirements for Security-Based SwapsSEC adopted a package of rules and rule amendments to establish capital, margin, and segregation requirements for security-based swaps, under Title VII of the Dodd-Frank Act.
August 22, 2019
WebPage
Regulatory News
|
|
News
ECB Revises Prudential Provisioning Expectations for New NPEsECB is revising its supervisory expectations for prudential provisioning of new non-performing exposures (NPEs) specified in the “Addendum to the ECB Guidance to banks on non-performing loans” (Addendum)
August 22, 2019
WebPage
Regulatory News
|
|
News
CFTC Proposes to Revise Information Collection on Margin RequirementsCFTC is requesting comments on the burdens associated with certain aspects of the Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants (final rule).
August 21, 2019
WebPage
Regulatory News
|
|
News
FASB to Delay Effective Date for Insurance Contracts StandardFASB issued a proposed Accounting Standards Update that would grant all insurance companies that issue long-duration contracts, such as life insurance and annuities, additional time to apply the standard that addresses this area of financial reporting.
August 21, 2019
WebPage
Regulatory News
|
|
News
EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.9EBA published phase 2 of its technical package on the reporting framework 2.9, which includes validation rules, Data Point Model (DPM) data dictionary, and XBRL taxonomies.
August 21, 2019
WebPage
Regulatory News
|
|
News
FSB Publishes Responses to Its Consultation Related to SME FinancingFSB published responses received to the consultation on a report on the evaluation of the effects of financial regulatory reforms on small and medium-sized enterprise (SME) financing.
August 21, 2019
WebPage
Regulatory News
|
|
News
APRA Revises Related Entities Standard for BanksAPRA published a strengthened prudential standard APS 222 on associations with related entities, with the aim to mitigate contagion risk within banking groups.
August 20, 2019
WebPage
Regulatory News
|
|
News
EBA and ESMA Issue Joint Response to EC Letter on Crypto-AssetsEBA and ESMA issued a joint response to the EC letter, from July 19, 2019, on crypto-assets.
August 20, 2019
WebPage
Regulatory News
|
|
News
FSB on Responses to Consultation on Wind-Down of Trading PortfoliosFSB published responses received to the consultation on the solvent wind-down of the derivatives and trading book portfolio of a global systemically important bank (G-SIB).
August 19, 2019
WebPage
Regulatory News
|
|
News
FSB Publishes Responses to Consultation on Resolvability DisclosuresFSB published responses received to the consultation on disclosures for resolution planning and resolvability of banks.
August 19, 2019
WebPage
Regulatory News
|
