Featured Product

    CBIRC and PBC Establish CCyB Mechanism in China, Set CCyB at 0%

    September 30, 2020

    CBIRC and PBC issued a notice establishing the mechanism for countercyclical capital buffer (CCyB), which came into force as of September 30, 2020. The notice specifies the provision methods, coverage, and evaluation mechanism of CCyB in China, by referring to international practices as well as the relevant requirements put forward by BCBS. In line with the current systemic financial risk assessments and pandemic containment needs, the ratio for CCyB shall be initially set at zero and banking financial institutions shall be free from the extra capital management requirements.

    CBIRC and PBC will take into consideration factors such as macroeconomic and financial conditions, the level of leverage ratio, and soundness of the banking sector in a comprehensive manner. The requirements for CCyB will be re-evaluated and adjusted on a regular basis to forestall systemic financial risks. The establishment of the mechanism for CCyB serves as a significant move to improve the macro-prudential policy framework and enrich the macro-prudential policy toolkit. It is conducive to further promoting the sound operation of banking financial institutions, enhancing countercyclical adjustments of macro-prudential policies, and cushioning the negative effects of procyclical fluctuations and unexpected shocks of financial risks, with the aim to safeguard the stable operation of the financial system in China.

     

    Related Link (in Chinese): Press Release

    Effective Date: September 30, 2020

    Keywords: Asia Pacific, China, Banking, CCyB, Basel, Regulatory Capital, Systemic Risk, Macro-Prudential Policy, PBC, CBIRC

    Featured Experts
    Related Articles
    News

    APRA Publishes Results of Climate Risk Self-Assessment Survey

    The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.

    August 04, 2022 WebPage Regulatory News
    News

    ACPR Publishes Updates Related to CRD IV and Covered Bonds

    The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).

    August 03, 2022 WebPage Regulatory News
    News

    EIOPA Publishes Guidance on Climate Change Scenarios in ORSA

    The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).

    August 02, 2022 WebPage Regulatory News
    News

    EBA and ECB Respond to Proposals on Sustainability Disclosures

    The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.

    August 01, 2022 WebPage Regulatory News
    News

    BIS Report Notes Existing Gaps in Climate Risk Data at Central Banks

    A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.

    July 29, 2022 WebPage Regulatory News
    News

    EBA Publishes Multiple Regulatory Updates for Regulated Entities

    The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.

    July 29, 2022 WebPage Regulatory News
    News

    EIOPA Issues SII Taxonomy and Guide on Sustainability Preferences

    The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.

    July 29, 2022 WebPage Regulatory News
    News

    EESC Opines on Proposals on CRR and European Single Access Point

    The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).

    July 29, 2022 WebPage Regulatory News
    News

    HM Treasury Publishes Multiple Regulatory Updates in July 2022

    HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.

    July 29, 2022 WebPage Regulatory News
    News

    APRA Consults on Prudential Standard for Operational Risk

    The Australian Prudential Regulation Authority (APRA) is seeking comments, until October 21, 2022, on the introduction of CPS 230, which is the new cross-industry prudential standard on operational risk management.

    July 28, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8422