CBIRC Issues Licensing Requirements for Chinese Commercial Banks
The China Banking and Insurance Regulatory Commission (CBIRC) issued the application materials catalog and format requirements for administrative licensing of Chinese-funded commercial banks, published a Notice, along with questions and answers (Q&As), for classification and regulation of trust companies, released a Notice on promoting key tasks of rural revitalization in 2023, and announced results of the three-year action plan to improve corporate governance in the banking and insurance industries.
Below is a summary of the recent updates:
- CBIRC issued application materials catalogue and format requirements to improve the standardization and effectiveness of administrative licensing work. As a next step, CBIRC will continue to deepen the reform of "decentralization, regulation and service", actively implement various measures to optimize the business environment, and continuously improve the standardization and facilitation of administrative licensing work of Chinese-funded commercial banks.
- The Notice on rural revitalization in 2023 requires the banking and insurance industries to strengthen the construction of rural financial service capabilities, improve the rural financial service system, build hierarchical institutional service system with complementary advantages, deepen the construction of the internal exclusive mechanism of banking institutions, and increase the inclination of internal resources in agriculture-related finance. The Notice aims to strengthen the post-loan management of agricultural credit, prevent agricultural credit risks, avoid excessive credit, illegal fees, etc., and strengthen the promotion and dissemination of financial knowledge in rural areas. The Notice requires continuous strengthening of supervision and assessment guidance, and a steady increase in agriculture-related credit investment.
- The Notice on trust business classification aims to clarify the boundaries of trust business and service content, guide trust companies to take advantage of institutional advantages and industry competitiveness in a standardized manner, promote the high-quality development of the trust industry, and help build a modern socialist country. The functions of various trust businesses can be classified as asset services, asset management, and public welfare and charity based on the nature of trust services. Going forward, CBIRC will guide trust companies to improve their internal management systems in accordance with the requirements of this Notice, refine the classification standards in light of regulatory requirements and company business characteristics, and conduct comprehensive and accurate classification of trust business based on the nature of trust services. The Notice will come into effect on June 01, 2023.
- The results of three-year action plan to improve corporate governance show that the organic integration of party leadership and corporate governance has been deepened further, issues related to ownership structure, shareholder equity and related transactions has been resolved, steady improvement was recorded in the performance of government entities, along with improvements in incentive and restraint mechanism, internal risk control and external supervision mechanism and safeguarding the legitimate rights and interests of stakeholders.
Related Links (in Chinese)
- CBIRC on Licensing Requirements for Commercial Banks
- Notice on Trust Business Classification
- Q&As on Trust Business Classification
- Notice on Promoting Rural Revitalization in 2023
- Results on Corporate Governance
Keywords: Asia Pacific, China, Banking, Credit Risk, Basel, Rural Credit, Agricultural Lending, Bank Licenses, CBIRC
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
UK Authorities Issue Reporting and Regulatory Updates for BanksRelated Articles
ISSB Sustainability Standards Expected to Become Global Baseline
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
BCBS Assesses NSFR and Large Exposures Rules in US
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.
Global Agencies Focus on ESG Data, Climate Litigation and Nature Risks
At the global level, supervisory efforts are increasingly focused on addressing climate risks via better quality data and innovative use of technologies such as generative artificial intelligence (AI) and blockchain.
ISSB Standards Shine Spotlight on Comparability of ESG Disclosures
The finalization of the IFRS sustainability disclosure standards in late June 2023 has brought to the forefront the themes of the harmonization of sustainability disclosures
EBA Issues Several Regulatory and Reporting Updates for Banks
The European Banking Authority (EBA) recently issued several regulatory publications impacting the banking sector.
BCBS Proposes to Revise Core Principles for Banking Supervision
The Basel Committee on Banking Supervision (BCBS) launched a consultation on revisions to the core principles for effective banking supervision, with the comment period ending on October 06, 2023.
US Proposes Final Basel Rules, Transition Period to Start in July 2025
The U.S. banking agencies (FDIC, FED, and OCC) recently proposed rules implementing the final Basel III reforms, also known as the Basel III Endgame.
FSB Report Outlines Next Steps for Climate Risk Roadmap
The Financial Stability Board (FSB) recently published the second annual progress report on the July 2021 roadmap to address climate-related financial risks.
EBA Plans on Ad-hoc ESG Data Collection and Climate Scenario Exercise
The recognition of climate change as a systemic risk to the global economy has further intensified regulatory and supervisory focus on monitoring of the environmental, social, and governance (ESG) risks.