Featured Product

    CBIRC and PBC Publish Regulations for Systemically Important Banks

    October 15, 2021

    The China Banking and Insurance Regulatory Commission (CBIRC) and the People's Bank of China (PBC) have published additional regulations on systemically important banks, which shall come into force on December 01, 2021. The key provisions included in the regulations cover additional regulatory requirements, recovery and resolution planning, and prudential supervision. CBIRC published a set of questions and answers on these additional regulations as well as the list of nineteen banks of systemic importance.

    The regulations clarify the requirements for additional regulatory indicators, including additional capital and additional leverage ratios. According to the regulations, systemically important banks have been divided into five groups. Banks in the first to fifth groups are subject to additional capital requirements of 0.25%, 0.5%, 0.75%, 1%, and 1.5%, respectively. The additional leverage ratio requirement is 50% of the additional capital requirement of systemically important banks. The regulations also clarify the requirements for recovery and resolution planning. Systemically important banks shall formulate group-level recovery and resolution plans and submit them, for review, to the crisis management team led by PBC. The regulations clarify the requirements for prudential supervision, including information related to reporting and disclosure, risk data aggregation and risk reporting, and corporate governance requirements.

    Additionally, CBIRC and PBC have released the list of domestic systemically important banks (D-SIBs) in China and have identified nineteen systemically important banks in China based on 2020 data. These nineteen systemically important banks include six state-owned commercial banks, nine joint-stock commercial banks, and four city commercial banks. CBIRC and PBC have divided these banks in five groups:

    • First group includes Ping An Bank, China Everbright Bank, Hua Xia Bank, China Guangfa Bank, Bank of Ningbo, Bank of Shanghai, Bank of Jiangsu, and Bank of Beijing
    • Second group includes Shanghai Pudong Development Bank, China CITIC Bank, China Minsheng Bank, and China Postal Savings Bank
    • Third group includes Bank of Communications, China Merchants Bank, and Industrial Bank
    • Fourth group includes the Industrial and Commercial Bank of China, Bank of China, China Construction Bank, and Agricultural Bank of China
    • No banks have entered the fifth group

     

    Related Links (in Chinese)

    Effective Date: December 01, 2021

    Keywords: Asia Pacific, China, Banking, Regulatory Capital, Leverage Ratio, Resolution Framework, D-SIBs, Resolution Planning, Basel, Systemic Risk, PBC, CBIRC

    Featured Experts
    Related Articles
    News

    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.

    September 20, 2022 WebPage Regulatory News
    News

    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.

    September 15, 2022 WebPage Regulatory News
    News

    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).

    September 15, 2022 WebPage Regulatory News
    News

    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.

    September 15, 2022 WebPage Regulatory News
    News

    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.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514