Featured Product

    CBIRC and PBC Consult on Measures to Evaluate and Identify D-SIBs

    November 26, 2019

    CBIRC and PBC are consulting on the evaluation measures for systemically important banks in China. The evaluation measures set out rules for the assessment and identification of systemically important banks and are intended to improve the regulatory framework for systemically important financial institutions in China. The measures apply to commercial banks, development banks, and policy banks established in accordance with the law. The data used in the evaluation are group consolidation data and the scope of the consolidation is determined in accordance with the supervision and consolidation scope of CBIRC. The comment period for this consultation expires on December 11, 2019. The key questions and answers (Q&A) regarding these evaluation measures have also been published.

    These measures represent a significant step toward strengthening macro-prudential management and guarding against the “too-big-to-fail” risks challenging the systemically important banks in China. The measures also address critical institutional arrangements for the prevention and mitigation of major financial risks. The measures will help to identify banks exerting systemic influence on financial system in China, boost the transparency and feasibility of the recognition of systemically important banks in China, and contribute to the sound operation of these banks. The measures consist of four chapters and 20 articles. The measures are aimed to evaluate the systemic importance of participating banks, identify systemically important banks in China, publish a list of systemically important banks each year, and conduct differentiated supervision of systemically important banks based on the list to reduce the possibility of major risks and prevent systemic risk.

    As a next step, CBIRC and PBC propose to send data submission templates and data reporting instructions to 30 eligible banks under review, collect data of 2018, and conduct 2019 evaluation of systemically important banks. Scores indicating the systemic importance of 30 banks will be calculated with quantitative assessment indicators. Tier-one assessment indicators include size, interconnectedness, substitutability, and complexity—each of which carries a weight of 25%. Every tier-one indicator comprises several tier-two indicators. Banks whose scores are above a certain threshold will be included in an initial list of systemically important banks. Next, by taking into consideration other quantitative and qualitative information, a supervisory judgment is proposed to be made on the systemic importance of the banks. CBIRC and PBC will then jointly release the final list of systemically important banks upon recognition of the Financial Stability and Development Committee (FSDC) under the State Council.

     

    Related Links (in Chinese)

    Comment Due Date: December 11, 2019

    Keywords: Asia Pacific, China, Banking, Macro-Prudential Measures, Systemic Risk, Too Big to Fail, Q&A, Reporting, D-SIBs, PBC, CBIRC

    Featured Experts
    Related Articles
    News

    HKMA Announces Repayment Deferment Under Payment Holiday Scheme

    HKMA, together with the Banking Sector Small and Medium-Size Enterprise (SME) Lending Coordination Mechanism, announced a ninety-day repayment deferment for trade facilities under the Pre-approved Principal Payment Holiday Scheme.

    August 05, 2020 WebPage Regulatory News
    News

    ESRB Paper Presents Alternative Approach to EBA Stress Test Proposal

    The Advisory Scientific Committee of ESRB published a response, in the form of an Insights Paper, to the EBA proposals for reforms to the stress testing framework in EU.

    August 05, 2020 WebPage Regulatory News
    News

    MAS Announces Key Initiatives to Support Adoption of SORA

    MAS announced several initiatives to support adoption of the Singapore Overnight Rate Average (SORA), which is administered by MAS.

    August 05, 2020 WebPage Regulatory News
    News

    BoE Updates Template and Definitions for Form ER

    BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.

    August 05, 2020 WebPage Regulatory News
    News

    PRA to Extend Temporary High Balance Coverage Amid COVID Crisis

    PRA published the policy statement PS19/20 on the final policy for extending coverage under the Financial Services Compensation Scheme (FSCS) for Temporary High Balance.

    August 04, 2020 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure and Reporting of MREL and TLAC

    EBA published the final draft implementing technical standards for disclosures and reporting on the minimum requirements for own funds and eligible liabilities (MREL) and the total loss-absorbing capacity (TLAC) requirements in EU.

    August 03, 2020 WebPage Regulatory News
    News

    EBA Releases Erratum for Phase 2 Package on Reporting Framework 2.10

    EBA published an erratum for the phase 2 of technical package on the reporting framework 2.10.

    August 03, 2020 WebPage Regulatory News
    News

    EC Sets Out Updated Technical Information for Solvency II Calculations

    EC published the Implementing Regulation 2020/1145, which lays down technical information for calculation of technical provisions and basic own funds.

    August 03, 2020 WebPage Regulatory News
    News

    US Agencies Issue Statement on Additional COVID-19 Loan Accommodations

    FFIEC, on behalf of its members that include US Agencies such as CFPB, FDIC, FED, NCUA, and OCC, issued a joint statement that sets out prudent risk management and consumer protection principles for financial institutions to consider while working with borrowers.

    August 03, 2020 WebPage Regulatory News
    News

    PRA Consults on Implementation of Certain Provisions of CRD5

    PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).

    July 31, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5622