CBIRC announced that the banking and insurance sectors in China continue to be healthy and to maintain a good momentum. Risks in key areas are effectively prevented and controlled, with capital adequacy ratios for commercial banks and insurance companies remaining adequate. The non-performing loan ratio of the banking sector was generally stable, along with the liquidity of commercial banks.
The proportion of liquidity, liquidity coverage, and net stable funds reached 55.8%, 140.2% and 122.1%, respectively. The main liquidity indicators of small and medium-size banks generally met the regulatory requirements. Risk resilience remains stable. At the end of July, the provision coverage ratio of commercial banks was 188.1%, an increase of 10.3 percentage points over the same period of the previous year. With more innovative tools to supplement capital through multiple channels, commercial banks have issued more than CNY 700 billion of non-fixed-term bonds and second-class capital bonds this year, further strengthening their capital and consolidating their risk resistance. At present, the capital adequacy ratio of commercial banks has reached 14.12%, an increase of 0.58 percentage points over the same period of the previous year. The insurance companies' comprehensive solvency adequacy ratio was 245.3% and the core solvency adequacy ratio was 233.4%, both of which remained within a reasonable range.
Related Link (in Chinese): News Release
Keywords: Asia Pacific, China, Banking, Insurance, NPLs, Capital Adequacy, Liquidity Risk, NSFR, Basel, CBIRC
ECB published Guideline 2021/975, which amends Guideline ECB/2014/31, on the additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral.
EIOPA published a report, from the Consultative Expert Group on Digital Ethics, that sets out artificial intelligence governance principles for an ethical and trustworthy artificial intelligence in the insurance sector in EU.
HKMA published the seventh and final issue of the Regtech Watch series, which outlines the three-year roadmap of HKMA to integrate supervisory technology, or suptech, into its processes.
EC launched a targeted consultation to improve transparency and efficiency in the secondary markets for nonperforming loans (NPLs).
BIS, Danmarks Nationalbank, Central Bank of Iceland, Norges Bank, and Sveriges Riksbank launched an Innovation Hub in Stockholm, making this the fifth BIS Innovation Hub Center to be opened in the past two years.
FDITECH, the technology lab of FDIC, announced a tech sprint that is designed to explore new technologies and techniques that would help expand the capabilities of community banks to meet the needs of unbanked individuals and households.
EC released the EU Taxonomy Compass, which visually represents the contents of the EU Taxonomy starting with the EU Taxonomy Climate Delegated Act.
FDIC is seeking comments on a rule to amend the interagency guidelines for real estate lending policies—also known as the Real Estate Lending Standards.
EIOPA published its annual report, which sets out the work done in 2020 and indicates the planned work areas for the coming months.
The ESRB paper that presents an analytical framework that assesses and quantifies the potential impact of a bank failure on the real economy through the lending function.