The China Banking and Insurance Regulatory Commission (CBIRC) published the administrative measures for internal control of wealth management companies, which come into force on the day of promulgation. These measures apply to, among others, the wealth management companies that might have a bank as the parent entity. Recently, the People’s Bank of China (PBC) added two foreign banks to the list of financial institutions eligible for Carbon Emission Reduction Facility or CERF. In yet another recent development, the regulators PBC and CBIRC released a list of the country's systemically important banks for 2022.
PBC added Deutsche Bank (China) and Societe Generale (China) to the list of financial institutions eligible for CERF. This move demonstrates the government’s emphasis on green transition and its firm stance on opening-up. The Chinese government treats foreign and domestic financial institutions equally and grants national treatment to foreign institutions to support their development in the country. The PBC will consider adding other willing and qualified foreign financial institutions to the list in the next step, in an effort to tap into their advantages in green finance and facilitate China's transition to green and low-carbon economy.
To strengthen the macro-prudential management and regulation of systemically important banks, PBC and CBIRC recently completed the assessment of China’s SIBs for 2022 according to the Measures for Assessment of Systemically Important Banks. Nineteen banks were designated as systemically important, consisting of six state-owned commercial banks, nine joint-stock commercial banks, and four city commercial banks. The systemically important banks fall into five groups, with no bank being included in Group Five this time. Group One contains nine banks: China Minsheng Bank, China Everbright Bank, PingAn Bank, Huaxia Bank, Bank of Ningbo, China Guangfa Bank, Bank of Jiangsu, Bank of Shanghai, and Bank of Beijing. Group Two contains three banks: China Citic Bank, Postal Savings Bank of China, and Shanghai Pudong Development Bank. Group Three contains three banks: Bank of Communications, China Merchants Bank, and Industrial Bank. Group Four contains four banks: Industrial and Commercial Bank of China, Bank of China, China Construction Bank, and Agricultural Bank of China. Moving forward, in accordance with the Additional Regulatory Provisions on Systemically Important Banks (Trial), PBC and CBIRC will continue to deliver on additional regulation of systemically important banks, enhance synergies between macro-prudential management and micro-prudential regulation, and facilitate sound operation and healthy development of systemically important banks.
Keywords: Asia Pacific, China, Banking, Wealth Management, Compliance Risk, Internal Control, Sustainable Finance, ESG, Green Finance, Low Carbon Economy, CERF, PBC, CBIRC
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