CBIRC issued a notice on further enhancing the quality and efficiency of financial services for "small and micro-enterprise (SME)" in 2019. The notice revolves around the guiding ideology of effectively increasing the proportion of bank credit in the total financing of SMEs and the overall decline of financing costs for SMEs. In terms of risk management and control, under the premise that the credit risk of SMEs is generally controllable, the tolerance rate of non-performing loans (NPLs) of inclusive SMEs will be relaxed to no more than 3 percentage points. As of the end of 2018, the national loan balance of SMEs was CNY 33.49 trillion, accounting for 23.81% of all loans.
Related Links (in Chinese)
Keywords: Asia Pacific, China, Banking, SME, NPLs, Risk Management, CBIRC
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).
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.
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.
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.
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
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.
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.
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.
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
The Swiss Federal Council recently decided to further develop the Swiss Climate Scores, which it had first launched in June 2022.