Featured Product

    PBC to Launch Carbon Financing Tools, Improve Ratings in Bond Market

    August 09, 2021

    The People's Bank of China (PBC), the National Development and Reform Commission, the Ministry of Finance, the China Banking and Insurance Regulatory Commission (CBIRC), and the China Securities Regulatory Commission jointly released a notice on promoting the sound development of the credit rating business in the bond market. The notice sets out requirements for credit rating agencies regarding improving the rating method system, as well as corporate governance and internal control mechanism, and enhancing information disclosure. It also emphasizes on improving the credit rating ecosystem and requires strong oversight of rating agencies.

    The notice on credit ratings in the bond market is market-oriented and driven by rule of law and the reform initiative to align with international practice. The notice promotes better rating quality and rating differential classification, so that credit ratings can play a better role in risk disclosure and pricing. It helps maintain a fair and equitable market, and drives the credit rating business to better support the sound overall development of the bond market. Going forward, PBC will continue to work with other departments to strengthen the oversight of the credit rating business. It will ensure that rating agencies fully play their role as “gatekeeper” to support the continuous sound development of the bond market.

    In addition to this, PBC, in its Monetary Policy Implementation Report for the second quarter of 2021, committed to promoting the design of carbon emission reduction policy support tools. PBC has established carbon emission reduction support tools to provide low-cost funds to support financial institutions to provide preferential interest rates for key projects with significant carbon emission reduction effects. The report noted that the design of the new instruments would be in accordance with the “principles of marketization, the rule of law, and internationalization” and it will “embody openness and transparency.” The financial institution can calculate the carbon emission reduction driven by the loan and disclose the carbon emission reduction information to the public. From the perspective of social supervision, the information disclosed by financial institutions is to be verified by a third-party professional institution.

     

    Keywords: Asia Pacific, China, Banking, Insurance, Securities, Credit Ratings, Bond Market, Credit Rating Agency, Credit Risk, ESG, Carbon Pricing, Low-Carbon Economy, Climate Change Risk, CBIRC, PBC

    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