CBIRC Consults on Rules for Administrative Licensing of Foreign Banks
CBIRC published draft implementation measures on administrative licensing of foreign banks. The draft measures include provisions to regulate the implementation of administrative licensing of foreign-funded banks by CBIRC; clarify the administrative licensing matters, conditions, procedures and deadlines; and protect the legitimate rights and interests of an applicant. The deadline for comments is December 08, 2019. The measures shall be implemented as of the date of promulgation. Additionally, the Measures for the Implementation of Administrative Licensing Matters by Foreign Banks, of the China Banking Regulatory Commission (CBRC Order No. 3 of 2018), shall be repealed simultaneously.
Foreign-funded banks referred to in these measures include wholly foreign-owned banks, Chinese-foreign joint venture banks, foreign bank branches, and foreign bank representative offices. Wholly foreign-owned banks, Chinese-foreign joint venture banks, and foreign bank branches are collectively referred to as foreign-funded banks' business institutions. The matters of a foreign-funded bank that shall be subject to administrative permission from CBIRC include establishment of the institution, change of the institution, termination of the institution, scope of business, qualifications of directors and senior managers, and other administrative regulations as required by laws, administrative regulations, and the State Council License matters.
Related Links (in Chinese)
Comment Due Date: December 08, 2019
Effective Date: Date of Promulgation
Keywords: Asia Pacific, China, Banking, Foreign-Funded Banks, Bank Licenses, CBIRC
Related Articles
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.
Global Agencies Focus on ESG Data, Climate Litigation and Nature Risks
At the global level, supervisory efforts are increasingly focused on addressing climate risks via better quality data and innovative use of technologies such as generative artificial intelligence (AI) and blockchain.
ISSB Standards Shine Spotlight on Comparability of ESG Disclosures
The finalization of the IFRS sustainability disclosure standards in late June 2023 has brought to the forefront the themes of the harmonization of sustainability disclosures
EBA Issues Several Regulatory and Reporting Updates for Banks
The European Banking Authority (EBA) recently issued several regulatory publications impacting the banking sector.
BCBS Proposes to Revise Core Principles for Banking Supervision
The Basel Committee on Banking Supervision (BCBS) launched a consultation on revisions to the core principles for effective banking supervision, with the comment period ending on October 06, 2023.
US Proposes Final Basel Rules, Transition Period to Start in July 2025
The U.S. banking agencies (FDIC, FED, and OCC) recently proposed rules implementing the final Basel III reforms, also known as the Basel III Endgame.
FSB Report Outlines Next Steps for Climate Risk Roadmap
The Financial Stability Board (FSB) recently published the second annual progress report on the July 2021 roadmap to address climate-related financial risks.
EBA Plans on Ad-hoc ESG Data Collection and Climate Scenario Exercise
The recognition of climate change as a systemic risk to the global economy has further intensified regulatory and supervisory focus on monitoring of the environmental, social, and governance (ESG) risks.