CBIRC on Decision to Amend Rules on Foreign-Funded Banks and Insurers
CBIRC published a State Council Order on the decision to amend the regulations of PBC on foreign-funded banks and insurance companies. The decision takes effect as of the date of promulgation. The revision of some articles of the two regulations is mainly to implement the opening-up policies approved by the central government on the market entry and business scope of foreign banks and insurance companies in China. CBIRC also published questions and answers (Q&As) related to the decision to amend the regulations.
The main revisions to the regulations on foreign-funded banks include the following:
- Removing the total asset requirement, as of the previous year-end prior to application, for the sole or controlling shareholder to establish a wholly foreign-owned bank, for the sole or major foreign shareholder to establish a Sino-foreign joint venture bank, and for a foreign bank to set up a branch in China, in addition to removing the condition that the sole or major Chinese shareholder of a Sino-foreign joint venture bank shall be a financial institution.
- Allowing foreign banks to concurrently set up wholly foreign-owned subsidiaries and branches, or concurrently set up Sino-foreign joint venture banks and foreign bank branches in China.
- Relaxing restrictions on foreign banks' business scope and allowing them to engage in issuance, redemption, and underwriting of government bonds. The threshold for foreign-bank branches to take time deposits from citizens in China has been lowered from RMB 1 million to RMB 500,000 per transaction and the approval requirement for foreign-funded banks to engage in RMB business is also removed.
- Improving regulatory measures for foreign bank branches, relaxing the requirement for foreign bank branches to hold a certain proportion of interest-bearing assets, and relaxing the restrictions on the proportion of RMB capital to RMB risk assets for foreign bank branches in China whose capital adequacy ratio continues to meet relevant regulations.
The main revisions to the regulations on foreign-funded insurance companies include the following:
- Removing the requirement that a foreign-insurance company applying for establishing a foreign-funded insurance company in China shall have been engaged in insurance business for more than 30 years and have established a representative office in China for more than 2 years
- Foreign insurance group companies are allowed to invest and set up foreign-funded insurance companies in China
- Overseas financial institutions are allowed to take shares in foreign-funded insurance companies in China
Related Links
Effective Date: October 15, 2019
Keywords: Asia Pacific, China, Banking, Insurance, Foreign-funded Banks, Foreign-funded Insurance Companies, Capital Adequacy, Opening-up Policy, State Council, PBC, CBIRC
Previous Article
BoE Proposes to Discontinue Collection of Form VPRelated Articles
BIS Paper Studies Impact of Fintech Lending on Small Businesses in US
The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.
UK Regulators Issue CRR Changes and Stress Test Scenarios for Banks
The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).
EBA Launches EU-Wide Transparency Exercise in 2022
The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.
SRB on CRR Quick-Fix to Policy for Multiple Point of Entry Banks
The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."
EC Rule Lists Advanced Economies for Market Risk Capital Calculations
The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.
EBA Publishes Final Regulatory Standards on STS Securitizations
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
ECB Further Reviews Costs and Benefits Associated with IReF
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
EBA Publishes Funding Plans Report, Receives EMAS Certification
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
