1. People's Republic of China Financial Sector Assessment Program : Basel Core Principles for Effective Banking Supervision
- Author
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International Monetary Fund and World Bank
- Subjects
RESERVE REQUIREMENTS ,BANKING OVERSIGHT ,CREDIT OFFICER ,SETTLEMENT SYSTEMS ,INFLATIONARY PRESSURES ,DEPOSIT ,EMPLOYMENT ,BROAD MONEY ,ASSET PRICE ,INFORMATION TECHNOLOGY ,INTERNATIONAL ACCOUNTING STANDARDS ,DEPOSIT INSURANCE ,FINANCIAL SECTOR ASSESSMENT ,LEGAL AUTHORITY ,RURAL CREDIT ,FEDERAL RESERVE ,LENDER OF LAST RESORT ,MUNICIPALITIES ,DUE DILIGENCE ,CAPITAL REQUIREMENTS ,CONTAGION ,CONSUMER PRICE INDEX ,BANK CUSTOMER ,CREDIT GROWTH ,EXCHANGE CONTROL ,GOOD FAITH ,AUDITORS ,EQUITY INVESTMENTS ,MARKET CAPITALIZATION ,TRANSPARENCY ,FINANCIAL MARKETS ,CURRENT ASSETS ,ISSUANCES ,CREDITORS ,FEDERAL RESERVE BANK ,MARKET DETERMINATION ,CORPORATE GOVERNANCE ,DEBIT CARDS ,PROPERTY RIGHTS ,BANKING INDUSTRY ,STATE BANKS ,BUSINESS ENTERPRISES ,LOAN PORTFOLIOS ,ASSET MANAGEMENT ,ACCESS TO FINANCIAL SERVICES ,MONETARY POLICY ,INTERNAL CONTROLS ,FINANCIAL DIFFICULTIES ,FOREIGN BANKS ,LIQUIDITY ,SMALL BUSINESS ,CREDIT RISK ,ACCOUNTING PRINCIPLES ,FINANCIAL SERVICES ,AUTONOMOUS REGIONS ,COLLEGE DEGREE ,DEBTS ,MANAGEMENT INFORMATION SYSTEMS ,INCENTIVES TO SAVE ,ADVANCED ECONOMIES ,AUDITS ,PRIVATE PROPERTY ,SMALL BANKS ,BANKRUPTCY ,GOVERNMENT FUNDING ,JOINT-STOCK COMPANIES ,LENDER ,CONSOLIDATION ,RETURN ON ASSETS ,PROPERTY LAW ,LOCAL GOVERNMENT ,SMALL BUSINESS LENDING ,CAPITAL MARKETS ,CREDIT PROVISION ,REGULATORY FRAMEWORK ,RETAIL INTEREST ,FINANCIAL SYSTEM ,FISCAL POLICY ,LEGAL PROVISIONS ,ECONOMIC REFORM ,EXCHANGE RATE ,FINANCIAL INSTITUTIONS ,REGULATION ,HOUSEHOLDS ,ECONOMIC POLICIES ,SOCIAL SAFETY NETS ,BOND ,BANKS ,REGULATORY SYSTEM ,BORROWING ,CAPITAL ADEQUACY RULES ,CAPITAL INJECTIONS ,LOAN ,CONSOLIDATED SUPERVISION ,SECURITIES ,NONPERFORMING LOANS ,BANK CAPITAL ,INFORMATION DISCLOSURE ,CREDIT RISK MANAGEMENT ,DEVELOPMENT BANK ,REAL ESTATE ,SUPERVISORY FRAMEWORK ,PROFESSIONAL DEVELOPMENT ,CAPITALIZATION ,RETURN ON EQUITY ,SUPERVISORY AUTHORITIES ,TRANSPORT ,LAWS ,FINANCIAL CONTRACTS ,LIQUIDITY RISK ,DEPOSITORS ,ACCOUNTABILITY ,TRANSACTION ,NET INTEREST MARGIN ,FINANCIAL DATA ,BANKING SYSTEM ,FINANCIAL SECTOR REGULATION ,BANKING SUPERVISION ,INSURANCE COMPANIES ,REGULATORY OBJECTIVES ,OPERATIONAL RISK ,SAVINGS BANKS ,ELECTRONIC PAYMENT ,MATURITIES ,BANK LENDING ,BANKING LAW ,MANDATES ,ASSET QUALITY ,RESOURCE ALLOCATION ,BANKERS ASSOCIATION ,ANTI-MONEY LAUNDERING ,POSTAL SAVINGS ,AUDITING ,INFORMATION SHARING ,MACROECONOMIC ADJUSTMENTS ,CONSUMER PROTECTION ,PROBLEM BANKS ,DISCLOSURE REQUIREMENTS ,RISK MANAGEMENT ,PAYMENT SYSTEM ,FINANCIAL RATIOS ,MARKET STRUCTURE ,CREDIT SUPPORT ,WAGES ,DEVELOPMENT FINANCE ,PAYMENT SERVICES ,STOCK EXCHANGES ,SAFETY NET ,LEGISLATIVE FRAMEWORK ,OPERATIONAL RISKS ,APPROVAL PROCESS ,AFFILIATES ,INTEREST RATE RISK ,MACROECONOMIC ENVIRONMENT ,BANKING SECTOR ,BOND MARKETS ,PREFECTURES ,CAPITAL ADEQUACY ,CROSS-BORDER BANKING ,FINANCIAL MANAGEMENT ,CHEAP MONEY ,AUTONOMY ,CENTRAL BANK ,RETURN ,MARKET DISCIPLINE ,FINANCIAL INFORMATION ,BANKING REGULATION ,FOREIGN EXCHANGE ,LEGAL PROTECTION ,ACCOUNTING ,COMMERCIAL BANK ,FINANCIAL LEASING ,RATING AGENCIES ,VILLAGE ,LOCAL GOVERNMENTS ,PENALTIES ,PRUDENTIAL REGULATION ,BANK FAILURES ,FINANCIAL STABILITY ,INSURANCE ,SOCIAL DEVELOPMENT ,BANKING SECTOR ASSETS ,EXTERNAL AUDITORS ,COMMERCIAL BANKING ,LENDING POLICIES ,INFORMATION DISCLOSURE REQUIREMENTS ,LEGISLATION ,INTERNATIONAL BANK ,BANKING SECTOR REFORM ,BANKRUPTCY LAWS ,NONBANK FINANCIAL INSTITUTIONS ,MONETARY FUND ,MARKET RISK ,ACCOUNTANT ,ASSET MANAGEMENT COMPANIES ,LOAN CLASSIFICATION ,RURAL CREDIT COOPERATIVES ,LEGAL FRAMEWORK ,CASH FLOWS ,VALUE PAYMENT SYSTEM ,FINANCE COMPANIES ,BANK ASSETS ,NATIONAL ECONOMIC POLICIES ,SAVINGS ,BANK SUPERVISION ,RISK MEASUREMENT ,FINANCIAL STRENGTH ,SUBSIDIARIES ,INTEREST RATE ,FINANCIAL REPORTING ,CASH PAYMENT ,NEGOTIABLE INSTRUMENTS ,NONBANK INSTITUTIONS ,EXPENDITURE - Abstract
The China Banking Regulatory Commission (CBRC) has maintained its momentum in regulation and supervision in the face of exceptional growth in scale and increasing complexity of the banking system. Equally, the CBRC has risen to the demands of the international regulatory reform agenda, delivering timely revisions to its body of regulations and maturing its supervisory practices through investing in essential new skills, enhancing methodologies, and broadening its interactions with the industry. In this context, the clarity of supervisory requirements and expectations communicated to the industry is a strength of the CBRC. Recent organizational reforms, in 2015, building on other internal reforms, will serve the CBRC well in delivering its supervisory mandate. While pursuit of financial stability is recognized as fundamentally important, concerns must be acknowledged as to whether the CBRC would, in practice, always be able to act on its primary, stability, objective, especially if government policies, whether focused growth and expansion, or social protection, conflicted with prudential considerations. The China Banking Regulatory Commission (CBRC) has achieved a high degree of compliance with the Basel Core Principles for Effective Banking Supervision (BCPs). Notwithstanding the revision to the BCP methodology, which raised the standards expected of supervisory authorities, the CBRC has demonstrated progress in almost all areas. Nevertheless, further maturing is needed, and taken together the recommendations of this report seek to support the CBRC in developing deeper and more comprehensive diagnostic capabilities, which ought to facilitate early, effective and preventative actions as necessary. It is essential that the CBRC’s achievements in recent years are consolidated as new challenges and complexities in the system will continue to emerge. In particular, it is essential that the CBRC obtain the resources to expand its range and depth of skills before developments in the industry leave it unable to maintain meaningful oversight and authority, not least of the four Global Systemically Important Banks (GSIBs). Building on the supervisory vision expressed in prestige CBRC publications such as the Annual Report, a detailed forward strategy for supervision, covering three to five years, would serve as a vehicle for the CBRC to articulate its case for resources.
- Published
- 2017