PBC published a statement on its Working Conference held in Beijing during January 02-03, 2020. The statement summarizes the main done in 2019 and outlines the work priorities for 2020. According to the meeting, in 2019, PBC resolutely guarded against major financial risks and worked toward continuous improvement of financial management and services. In 2020, work on recovery and resolution mechanism, preparation for macro-prudential stress tests, development of bond markets, and strengthening of the governance structure of policy banks will be some of the key areas in focus for the financial sector.
With respect to the work in 2020, the meeting stressed on the following key points:
- To prevent and resolve major financial risks. PBC will establish and improve the recovery and resolution mechanism, loss-sharing mechanism, and incentive and restraint mechanism of financial institutions. It will continue to carry out special rectification of Internet financial risks and establish a long-term supervision mechanism.
- Focus on alleviating the difficulty of financing for small and micro enterprises. PBC will improve the incentive mechanism for loan appraisal of small and micro enterprises and implement the credit due diligence and exemption system.
- To accelerate the improvement of the macro-prudential management framework. Macro-prudential stress test system will be prepared. PBC will speed up the establishment and improvement of a macro-prudential management mechanism for cross-border capital flows that integrate local and foreign currencies. It will also gradually expand the scope of macro-prudential policies, organize the implementation of systemically important bank assessments, and promote the implementation of supervision and management measures for financial holding companies.
- To deepen financial reform of financial markets and financial institutions. PBC will actively develop the bond market and strengthen the overall supervision of financial infrastructure. It will work to deepen the reform of small and medium banks and rural credit cooperatives, in addition to further improving the governance structure of policy banks.
- To strengthen research and development and application of financial technology. PBC will implement the development plan for fintech and strengthen rules for fintech supervision. IT will continue to steadily advance the development of digital currencies and further expand the application field of Global Legal Person Identification Code (LEI) in China.
- To comprehensively improve the level of financial services and financial management. PBC plans to deepen the pilot projects of regional financial reforms such as science and technology finance, green finance, inclusive finance, financial innovation, and regional coordinated development. It also plans to promote the modernization of central bank financial governance and further strengthen the anti-money laundering supervision.
Keywords: Asia Pacific, China, Banking, Securities, Macro-prudential Policy, Stress Testing, SME, Fintech, LEI, Resolution Framework, PBC
Previous ArticleOSFI Updates Manual of Reporting Forms and Instructions for Insurers
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.