Featured Product

    CBIRC Issues Measures to Manage Liquidity Risk for Commercial Banks

    May 25, 2018

    CBIRC issued measures for the management of liquidity risk of commercial banks, with the effective date of implementation being July 01, 2018. The measures introduce three quantitative indicators: net stable funding ratio (NSFR), high-quality liquid asset adequacy ratio, and the liquidity matching ratio.

    NSFR measures the long-term funding stability of a bank and it applies to commercial banks with assets of CNY 200 billion or more. The high-quality liquid asset adequacy ratio measures whether banks possess sufficient high-quality liquid assets to cover their short-term liquidity needs under stressful conditions and is applicable to commercial banks with asset sizes of less than CNY 200 billion. The liquid asset adequacy ratio is subject to phased compliance. For commercial banks, this ratio should reach 80% by the end of 2018 and 100% by the end of June 2019.

    The liquidity matching ratio is intended to further improve liquidity risk monitoring system. It measures the maturity allocation structure of major assets and liabilities of banks and is applicable to all commercial banks. The liquidity matching ratio will be implemented starting from January 01, 2020 and will be temporarily monitored before 2020. Liquidity risk supervision indicators in China include liquidity coverage ratio, net stable funding ratio, liquidity ratio, liquidity matching ratio, and high liquidity asset adequacy ratio.

     

    Related Links (in Chinese)

    Effective Date: July 01, 2018

    Keywords: Asia Pacific, China, Banking, Liquidity Risk, NSFR, Liquidity Matching Ratio, Proportionality, CBIRC

    Related Articles
    News

    Regulators Fine Goldman Sachs for Risk Management Failures

    FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).

    October 23, 2020 WebPage Regulatory News
    News

    Canada Hosts International Conference of Banking Supervisors

    BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.

    October 22, 2020 WebPage Regulatory News
    News

    FCA Proposes More Measures to Help Insurance Customers Amid Crisis

    FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.

    October 21, 2020 WebPage Regulatory News
    News

    EBA Issues Opinion to Address Risk Stemming from Legacy Instruments

    EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.

    October 21, 2020 WebPage Regulatory News
    News

    ESRB Publishes Non-Bank Financial Intermediation Risk Monitor for 2020

    ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).

    October 21, 2020 WebPage Regulatory News
    News

    HM Treasury Publishes Policy Statement Amending Benchmarks Regulation

    HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.

    October 21, 2020 WebPage Regulatory News
    News

    APRA Initiates Action Against a Bank for Liquidity Compliance Breach

    APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.

    October 21, 2020 WebPage Regulatory News
    News

    PRA Consults on Implementation of Certain Provisions of CRD5 and CRR2

    PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).

    October 20, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Rule to Reduce Impact of Large Bank Failures

    US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).

    October 20, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Rule on Net Stable Funding Ratio Requirements

    US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.

    October 20, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6004