CBIRC Outlines Approach to Address Issues in Shadow Banking Sector
CBIRC issued a notice that discusses the outstanding issues for shadow banking and cross-sector financial businesses that have been discovered in the supervision and inspection of relevant institutions in recent years; it also puts forward work requirements for standardized rectification of these issues. In addition, CBIRC published a set of questions and answers (Q&A) on the issues in shadow banking and cross-sector financial businesses. CBIRC has also published a set of Q&A related to the measures taken by CBIRC to address the impact of COVID-19 pandemic.
The issues reported by CBIRC mainly focused on inadequate implementation of the "new asset management regulations" and "new financial management regulations," improper isolation of business risks, and ineffective control over non-standard investment businesses. While reporting the issue, CBIRC puts forward four requirements for regulating and rectifying shadow banking and cross-sector financial businesses. These requirements are improving ideological understanding and establishing a correct development concept; highlighting the focus of work and carrying out in-depth rectification work; strengthening prudent operation and promoting the transformation of business standards; and improving the quality and effectiveness of supervision work. CBIRC requires all bancassurance institutions to implement their main responsibilities and comprehensively investigate existing problems.
CBIRC emphasized that the regulatory authorities at all levels will maintain their regulatory power, adhere to supervision in accordance with the law, and persevere in cracking down on violations of laws and regulations in shadow banking and cross-financial businesses. It is necessary to standardize and rectify prominent problems in shadow banking and cross-sector financial businesses, further unblock financing channels, guide funds to serve the real economy with higher quality, and provide precise financial services for epidemic prevention and control, resumption of work and production, and real economy development.
Related Links (in Chinese)
Keywords: Asia Pacific, China, Banking, Insurance, Shadow Banking, Q&A, COVID-19, CBIRC
Previous Article
BNB Extends Loan Moratorium, Maintains CCyB at 0.5% Amid CrisisRelated Articles
EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis
The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.
EBA Mulls Inclusion of Environmental & Social Risks to Pillar 1 Rules
The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.
BCBS Consults on Disclosure of Crypto-Asset Exposures of Banks
As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.
BCBS and EBA Publish Results of Basel III Monitoring Exercise
The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.
PRA Updates Timeline for Final Basel III Rules, Issues Other Updates
The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.
US Treasury Sets Out Principles for Net-Zero Financing
The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.
EC Launches Survey on G7 Principles on Generative AI
The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.
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.
