Featured Product

    PBC Publishes the 2019 Financial Stability Report for China

    November 25, 2019

    PBC released the 2019 China Financial Stability Report, which gives a comprehensive view of the soundness of the financial system in China since 2018. The report highlights that the financial sector in China has upheld the underlying principle of pursuing progress while ensuring stability. Overall, the financial risks, which have been rapidly building up over the past years, are being mitigated gradually while the existing financial risks are being resolved in an orderly manner. Financial markets are stable, financial regulatory rules have been further improved, and systemic financial risks have been forestalled.

    The report highlights that after over a year of rectification and with multiple measures taken, preventing and defusing financial risks made headway so that the macro leverage ratio was effectively stabilized. Institutions with high risks, such as Baoshang Bank, were dealt with in a stable, orderly manner. Vigorous measures were taken to straighten out financial order so that existing risks were reduced steadily. Local, structural liquidity risks of small and medium-size banks were tackled prudently, while bond defaults of private enterprises were handled step by step. New rules on asset management were rolled out and guidelines for the regulation of systemically important financial institutions were released to shore up the institutional weaknesses of regulation. The Chinese economy remains highly resilient, as the operation of major financial institutions is sound and stable and macro policy instruments and regulatory mechanisms are adequate.

    The report also mentions that financial risks have begun to show new features and new trends of evolution. While incremental risks related to institutions of special concern and all sorts of illicit financial activities have been contained effectively, more work needs to be done to resolve existing risks. As financial markets are highly sensitive to external shocks, the risks of abnormal market fluctuations should be closely watched. According to the report, in the past year, under the command and coordination of the State Council Financial Stability and Development Committee, PBC worked with other concerned agencies to apply tailored policies to different risks.

    To address the problem of institutional inadequacy, sustained efforts were made to advance regulatory reform and shore up regulatory weaknesses. PBC strengthened routine risk monitoring and assessment and ensured that contingency plans for the resolution of different risks were put in place. Meanwhile, in defusing and resolving risks, PBC focused on the pace and intensity of policy implementation while carrying out preemptive adjustment and fine-tuning as needed. Work was also done to prevent risks that may arise from risk resolution. As a result, the stable operation of financial markets and financial institutions was effectively guaranteed.

     

    Keywords: Asia Pacific, China, Banking, Securities, Financial Stability Report, Systemic Risk, Liquidity Risk, Resolution Framework, PBC

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BCBS Issues Climate Risk Principles while HKMA Expresses Its Support

    The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8280