CBIRC published measures to strengthen the supervision of corporate governance of banking and insurance institutions. The measures apply to commercial banks and commercial insurance institutions established in accordance with the law in China, including large state-owned commercial banks, joint-stock commercial banks, urban commercial banks, private banks, rural commercial banks, foreign banks, insurance group (holding) companies, insurance companies, mutual insurance companies, and captive companies. The measures shall be implemented as of the date of promulgation. Additionally, CBIRC published questions and answers (Q&A) related to the measures.
The key topics covered in the measures include general rules, evaluation content and methods, evaluation procedures and division of labor, evaluation results and applications, supplementary rules, and evaluation tables for corporate governance of commercial banks and insurance institutions. The evaluation content of the measures mainly includes eight aspects: party leadership, shareholder governance, board governance, supervisory board and senior management governance, internal risk control, connected transaction governance, market discipline, and other stakeholder governance. CBIRC will use the results of corporate governance supervision and evaluation as an important basis for allocating regulatory resources, taking regulatory actions, and strengthening the evaluation of the assessment results in areas such as market access, on-site inspection and approval, and regulatory rating.
Related Links (in Chinese)
Effective Date: Promulgation Date
Keywords: Asia Pacific, China, Banking, Insurance, Governance, CBIRC
Previous ArticleBCBS Consults on Guidelines on Prudential and AML/CFT Supervision
Next ArticleBIS Paper Examines Shadow Banking System in China
The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.