CBIRC and PBC Publish Updates for Financial Sector Entities
The China Banking and Insurance Regulatory Commission (CBIRC) published a draft decision amending certain administrative licensing regulations and issued a "notice on further strengthening financial support for the development of small and micro enterprises in 2022." In addition, the People’s Bank of China (PBC) published an exposure draft on the Law on financial stability.
Below are key highlights of the recent updates:
- CBIRC is requesting opinions on the "decision on amending some administrative licensing regulations.” The amendments include reducing the scope of examination and approval for the qualifications of bank executives, optimizing the relevant qualifications, optimizing the scope and mechanism for the examination and approval of bank issuance of bonds, and revising certain clauses in accordance with the principle of consistency between China and foreign countries.
- The key work areas highlighted in the notice for small and micro enterprises include continuously improving the financial supply of small and micro enterprises, improving the multi-level credit supply system for small and micro enterprises, further enhancing the availability of loans for small and micro enterprises, continuing the policy of deferred repayment of principal and interest, strengthening financial support for the technological innovation of small and micro enterprises, effectively strengthen risk management and data governance, and strengthening of credit information sharing and application.
- The PBC exposure draft includes provisions related to financial risk prevention, financial risk defusing, financial risk resolution, legal liabilities, and supplementary provisions. The draft law will strengthen financial risk prevention and early correction so that risks are identified and managed at an early stage. It will establish a market- and law-based risk resolution mechanism, and specify the sources and use of risk resolution funds, improve risk resolution measures and tools to protect the legitimate rights and interests of market entities. Also, it will hold those who commit illegal and irregular conducts accountable, thereby consolidating the financial safety net and holding the bottom line that no systemic financial risk should occur.
Related Links (in Chinese)
- CBIRC Press Release on Draft Amendments to Licensing Regulations
- CBIRC Press Release on Financial Support for SMEs
- Notice on Financial Support for SMEs
Keywords: Asia Pacific, China, Banking, Licensing, Administrative Licensing, SMEs, Credit Risk, Financial Stability, Lending, CBIRC, PBC
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