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
Dieter Van der Stock
IFRS subject matter expert; LDTI subject matter expert; accounting authority; risk management specialist
Previous Article
HKMA Announces Results of Survey on Credit Conditions of SMEsRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
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.
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.
