Global regulatory agencies have set up China's four major banks into system importance financial institutions. Now China will list more institutions on this list, which may include brokers and insurance companies.
Chinese regulatory agencies will identify more financial institutions as systematic financial institutions. This is the latest measures to control financial risks after ten years of debt growth.
A policy framework jointly released by multiple regulators on Tuesday was paved to the agencies that are generally referred to as the generally known as the generally known as a TOO BIG to Fail.Global regulatory agencies have previously selected the four major commercial banks in China into this type, and now China may also include other financial institutions on this list.
In a statement issued at the same time, the People's Bank of China (PBOC) pointed out that the newly used regulatory framework adopted in the world after the global financial crisis in 2008 will be a template for Chinese regulatory agencies to carry out regulatory work at the national level.The statement specifically mentioned the Financial Stability Board and the Basel Committee On Banking Supervisor.The former is an international regulatory agency founded in 2009 in 2009, and the latter formulated an international standard for capital adequacy ratio for banks.
The People's Bank of China said: We urgently need institutional arrangements for the identification, supervision and disposal of system importance financial institutions in Hellip; Hellip; make up for the shortcomings of supervision, and effectively maintain the steady operation of the financial system.
Chinese leaders and global financial regulatory agencies have repeatedly warned that China's ten years of rapid credit growth has risked financial stability and long -term economic growth.The Chinese banking system exceeded the euro area last year and became the largest banking system in the world.
Last year, the Chinese regulatory agency set off a regulatory storm, focusing on slowing debt growth and combating the complexity of financial business.It is believed that the increasing complexity in financial business is largely caused by financial institutions to set up regulations to avoid lending restrictions.
The Financial Stability Council puts the Industrial and Commercial Bank of China (ICBC) and the Bank of China (BOC) mdash; MDASH; according to the size of the assets, the largest and fourth largest commercial banks in China, MDASH; MDASH;G-SIFI) is the same as Western companies such as Goldman Sachs and Wellsfargo.
Banks that are identified as G-SIFI need to meet higher capital adequacy ratios, and the higher the capital adequacy ratio requires the rigorous requirements of the banks.
China Second Macau China Construction Bank (CCB) has recently been adjusted from secondary to three levels.Agricultural Bank (ABC).CCB was transferred to the three levels to reflect the impact of regulatory strengthening in the past year.
China's newly released guidance refers to securities companies, insurance companies, and non -commercial policy banks (the largest of which is the National Development Bank (CDB)) as a potential system important institution.
The names of the specific institutions are not mentioned in the document, but CITIC Securities and Ping An Insurance (mdash; mdash; calculate the assets, the largest securities company and the largest insurance company MDASH; mdash;Under the new framework, it may face stricter supervision.
The People's Bank of China stated that it will formulate implementation rules with banks, insurance and securities regulators.
In the context of the continuous opening up of China's financial system, the implementation of international risk control standards, partly to allow Chinese financial institutions to integrate with foreign markets, Southwest Securities (Southwest Securities) Beijing non -bank financial analyst Lang Daqun.
In addition to the latest announcement, China has recently tightened the supervision of financial holding companies to deal with systemic risks.Financial holding companies are defined as groups with subsidiaries in multiple financial business areas.
Participants of a related pilot project include Ant Financial, Ant Financial, and China Merchants Group.This framework may eventually cover other holding companies, such as Ping An, Citic Group and China Everbright Group.
In July last year, the Chinese government established the Financial Stability and Development Commission (Financial Stability and Development Commission), which was responsible for coordinating various financial regulatory agencies to block loopholes.
According to the institutional reform plan that the Chinese people are approved by the Chinese people in March this year, the Chinese government also combines the bank and insurance regulatory agencies into one to combat the regulatory arbitrage of large -scale financial groups engaged in a variety of businesses.
Jia Yizhen Supplement Report
Translator/He Li
