Featured Product

    CBIRC Amends Licensing Rules for Certain Banking Sector Entities

    October 23, 2022

    The China Banking and Insurance Regulatory Commission (CBIRC) issued a "Decision" amending certain administrative licensing regulations for Chinese-funded commercial banks, small and medium-size rural banking institutions, and foreign-funded banks. The "Decision" will come into force on October 08, 2022.

    The amendments include reducing the scope of examination and approval for the qualifications of bank executives, optimizing the scope and mechanism for the examination and approval of bank issuance of bonds, and revising some clauses in accordance with the principle of consistency between China and foreign countries. The amended Article 65 states that "State-owned commercial banks, Postal Savings Bank, and joint-stock commercial banks apply for capital instruments." The planned issuance quota of non-capital debt instruments, including the total loss-absorbing capacity of global systemically important banks, shall be accepted, reviewed, and decided by CBIRC, which shall make a written decision of approval or disapproval within 3 months from the date of acceptance. Moreover, "a city commercial bank's application for the planned issuance quota of capital instruments shall be accepted, reviewed and decided by the local provincial dispatched office. The local provincial dispatched office shall make a written decision of approval or disapproval within 3 months from the date of acceptance." " Commercial banks can independently determine the specific instrument variety, issuance time, batch, and scale within the approved quota, and complete the issuance within 24 months after approval.

    With respect to the amendments to the approval of bank bond issuance, state-owned commercial banks, postal savings banks, and joint-stock commercial banks shall report to CBIRC within 10 days after the issuance of non-capital bonds while the city commercial banks shall report to the local provincial agency within 10 days after the issuance of non-capital bonds. Another requirement is to clarify the issuance mechanism of capital bonds. Relevant institutions can independently determine the specific instrument types, issuance time, batches, and scales within the approved quota. Institutions should complete the issuance within 24 months after approval. The "Decision" is intended to promote the streamlining of administration and decentralization, optimize the banking market access procedures, and build a consistent system of market access rules inside and outside the country.

     

    Related Links (in Chinese)

     

     

    Keywords: Asia Pacific, China, Banking, Bank Licenses, Basel, TLAC, Regualtory Capital, CBIRC

    Featured Experts
    Related Articles
    News

    EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS

    The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.

    February 23, 2024 WebPage Regulatory News
    News

    ECB to Expand Climate Change Work in 2024-2025

    Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.

    February 23, 2024 WebPage Regulatory News
    News

    BIS Bulletin Examines Cognitive Limits of Large Language Models

    The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.

    January 25, 2024 WebPage Regulatory News
    News

    ECB is Conducting First Cyber Risk Stress Test for Banks

    As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.

    January 24, 2024 WebPage Regulatory News
    News

    EBA Continues Momentum Toward Strengthening Prudential Rules for Banks

    A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.

    January 24, 2024 WebPage Regulatory News
    News

    EU and UK Agencies Issue Updates on Final Basel III Rules

    The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards

    December 19, 2023 WebPage Regulatory News
    News

    Industry Agency Expects Considerable Uptake for Swiss Climate Scores

    The Swiss Federal Council recently decided to further develop the Swiss Climate Scores, which it had first launched in June 2022.

    December 18, 2023 WebPage Regulatory News
    News

    BCBS Consults on Disclosure of Climate Risks, Issues Other Updates

    The Basel Committee on Banking Supervision (BCBS) launched consultation on a Pillar 3 disclosure framework for climate-related financial risks, with the comment period ending on February 29, 2024.

    December 18, 2023 WebPage Regulatory News
    News

    US Government Moves to Regulate Development and Use of AI Models

    The U.S. President Joe Biden signed an Executive Order, dated October 30, 2023, to ensure safe, secure, and trustworthy development and use of artificial intelligence (AI).

    December 18, 2023 WebPage Regulatory News
    News

    MAS Launches Gprnt Digital Platform for ESG Reporting for SMEs

    The Monetary Authority of Singapore (MAS) launched an integrated digital platform, Gprnt, also known as “Greenprint.”

    November 29, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8949