CBIRC Issues Measures for Banks and Insurers in Response to Emergency
CBIRC published the "Administrative Measures on Financial Services for Banking and Insurance Institutions in Response to Emergencies," which will be implemented from the date of issuance. CBIRC has, in conjunction with the relevant departments, issued targeted policies and measures in response to the epidemic to ensure continuity of basic financial services and promote bancassurance institutions to support the real economy to resume development as soon as possible. The bancassurance institutions shall establish and improve the emergency response management system and management system within six months from the date of implementation of these measures and report to the bancassurance regulatory agency. CBIRC also published key questions and answers related to the measures.
The measures implement the basic concepts of combining support for the real economy with maintaining the soundness of the financial system, providing convenient financial services with effective risk prevention, and adherence to the bottom line of prudential supervision and flexible response to emergencies. The bancassurance institutions mentioned in these measures refer to banking financial institutions and insurance companies. The banking financial institutions mentioned in these measures refer to financial institutions established within the territory of the People's Republic of China, such as commercial banks, rural credit cooperatives, and other financial institutions that absorb public deposits as well as development financial institutions and policy banks.
The measures clarify the definition of emergencies, the basic principles of response, and the organization and management system arrangements. The measures emphasize the need to maintain the bottom line of risk while providing financial services and financial support. Emphasis is placed on strengthening pre-loan review and post-loan management; preventing customers from improperly obtaining, using financing facilities, or preferential conditions; preventing multiple and excessive credit extensions; and preventing misappropriation of financing. Banking financial institutions shall, for loans that meet the provisions on loan reduction, exemption, and write-off, strictly follow procedures and conditions for loan reduction or write-off, do a good job in loan collection management and asset preservation, and effectively safeguard legal financial claims. The measures require institutions to conduct business retrospective and post-assessment in a timely manner, strictly prevent behavior that violate the legal rights of customers, and strengthen public opinion monitoring, management, and response.
The measures also stipulate that CBIRC can actively adjust regulatory indicators and temporarily exempt bancassurance institutions from taking regulatory measures or imposing administrative penalties. It is also emphasized that bancassurance institutions must not take the opportunity to distribute dividends and distribute or increase the remuneration packages of "directors, supervisors, and senior managers."
Related Links (in Chinese)
Effective Date: Issuance Date
Keywords: Asia Pacific, China, Banking, Insurance, Governance, Remuneration Practices, Dividend Distribution, Business Continuity, COVID-19, Credit Risk, CBIRC
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Dieter Van der Stock
IFRS subject matter expert; LDTI subject matter expert; accounting authority; risk management specialist
Previous Article
FED Revises Information Collection Under Market Risk Capital RuleRelated Articles
NGFS Seeks Public Feedback on Climate Risk Assessment Scenarios
The Network for Greening the Financial System (NGFS) launched its first user feedback survey on climate scenarios, with the feedback period ending on February 27, 2023.
EBA Launches Stress Tests for Banks, Issues Other Updates
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
