Featured Product

    CBIRC Notice on Regulating Structured Deposit Business of Banks

    October 18, 2019

    CBIRC issued a notice on further regulating the structured deposit business of commercial banks. The notice defines "structural" (or "structured") deposits and sets strict distinction between structural deposits and general deposits. It also requires banks to formulate and implement corresponding risk management policies and procedures and put forward accounting and management requirements for structured deposits. The notice shall be implemented as of the date of promulgation. CBIRC also published questions and answers (Q&As) related to the notice.

    The term "structural deposit" as used in this notice refers to the deposits embedded in financial derivatives absorbed by commercial banks. It is linked to fluctuations in interest rates, exchange rates, indices, and so on or linked to the credit situation of an entity, so that depositors are undertaking certain risks. Commercial banks issuing structural deposits shall have the qualification of general derivatives trading business and follow the relevant regulatory provisions on derivatives trading. Commercial banks shall strengthen compliance management on the sales of structured deposits in accordance with the relevant provisions of the Wealth Management Rules and improve information disclosure to protect the legitimate rights and interests of investors. Regulatory agencies shall strengthen off-site supervision and on-site examination and take regulatory measures or impose administrative penalties according to laws and regulations.

    As for the arrangement of transition period, the notice adopts the policy arrangement of setting up transition period and "dividing the old from the new" (grandfathering). The transition period shall be 12 months starting from the date of implementation of the notice. During the transition period, commercial banks can continue to issue the former structural deposits (old products), yet these products shall be strictly controlled within the overall scale of existing products and be reduced in an orderly way. After the transition period, structured deposits newly issued by commercial banks shall conform to the provisions of this notice. For commercial banks that cannot comply with the provisions of this notice due to special reasons after the end of the transition period, with the consent of the banking regulatory authority, appropriate arrangements could be adopted. In the next step, CBIRC will further strengthen the supervision and management of structured deposit business and urge commercial banks to strictly implement relevant regulatory provisions to effectively prevent risks. 


    Related Links 

    Effective Date: October 18, 2019

    Keywords: Asia Pacific, China, Banking, Structured Deposits, General Deposits, Risk Management, Q&A, CBIRC

    Related Articles

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News

    DNB Publishes Multiple Reporting Updates for Banks

    DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.

    February 28, 2023 WebPage Regulatory News

    NBB Sets Out Climate Risk Expectations, Issues Reporting Updates

    The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting

    February 24, 2023 WebPage Regulatory News

    EBA Updates Address Securitization Standards and DGS Guidelines

    The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.

    February 21, 2023 WebPage Regulatory News

    FSB Publishes Letter to G20, Sets Out Work Priorities for 2023

    The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023

    February 20, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8793