CBRC Consults on Licensing Measures for Foreign Funded Banks
CBRC is consulting the public on amendments to its decision on implementing administrative measures for foreign-funded banks. CBRC intends to amend the measures for the implementation of administrative licensing matters of foreign-funded banks. Comments are due by January 27, 2018.
The amendments are intended to facilitate further expansion and opening up of the banking sector, minimize administrative licensing issues by simplifying administrative licensing procedures, and further standardize the market access standards for foreign-funded banks. The key amendments relate to the following three aspects:
- The regulations on the conditions, procedures, and application materials for the establishment of foreign-funded corporate banks for investment and establishment of domestic banking financial institutions have been added to provide a clear legal basis for foreign-funded corporate banks to conduct equity investments in banking financial institutions.
- The examination and approval of the four businesses of foreign-funded banks, such as the provision of overseas wealth management services for foreign customers, the handling of foreign wealth management services on behalf of clients, the securities investment fund custody business, and the drawing-off of interest-earning assets by liquidated foreign-funded financial institutions, were abolished and the reporting system implemented.
- The third amendment is to further standardize the market access standards for Chinese-foreign banks: the preparatory procedures for the establishment and opening of the merged branch and the approval of the opening of branches only; optimizing the conditions for foreign-funded banks to raise debt and capital to replenish the instruments; simplifying the qualification examination process for senior executives, The transfer of funds between the banks in a foreign exchange or the shift to a lower post should be changed from pre-approval to filing.
Related Links (in Chinese)
Comment Due Date: January 27, 2018
Keywords: Asia Pacific, China, Banking, Administrative Licensing, Foreign Funded Banks, CBRC
Related Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards