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

    EC Rule on Contractual Recognition of Write Down and Conversion Powers

    The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.

    September 17, 2021 WebPage Regulatory News
    News

    APRA Issues Further Guidance on Application of Securitization Standard

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.

    September 16, 2021 WebPage Regulatory News
    News

    SRB Provides Update on Approach to Prior Permissions Regime

    The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.

    September 16, 2021 WebPage Regulatory News
    News

    APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.

    September 15, 2021 WebPage Regulatory News
    News

    EBA Finalizes Guidance to Assess Breaches of Large Exposure Limits

    The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.

    September 15, 2021 WebPage Regulatory News
    News

    PRA Finalizes Changes to Consolidated Prudential Rules Under CRD5/CRR2

    The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.

    September 15, 2021 WebPage Regulatory News
    News

    EBA Revises Guidelines on Stress Tests of Deposit Guarantee Schemes

    The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).

    September 15, 2021 WebPage Regulatory News
    News

    Nordea Bank and EIB Sign Agreement to Fund Green Projects in Nordics

    The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.

    September 15, 2021 WebPage Regulatory News
    News

    HKMA Endorses Industry Guidance to Support LIBOR Transition

    The Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).

    September 14, 2021 WebPage Regulatory News
    News

    OCC Issues Booklet on Supervision of Problem Banks

    The Office of the Comptroller of the Currency (OCC) issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook. The booklet covers information on timely identification and rehabilitation of problem banks and their advanced supervision, enforcement, and resolution when conditions warrant.

    September 13, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7481