BEIJING, Dec. 28 (Xinhua) -- China Banking and Insurance Regulatory Commission (CBIRC) released on Tuesday interim measures on comprehensive regulatory rating of foreign banks' branches in China to ensure their stable operation, reported Xinhua Finance.
The measures contain seven chapters including the general provisions, core factors rating, head office support assessment, comprehensive regulatory rating, rating procedures, application of rating results and supplementary provisions.
It specifies the definition, scale of application, main principles, rating factors, basic procedures and results application of ratings of foreign banks' branches in China.
For core factors rating, four rating factors are included, namely the risk management, operation control, compliance and asset quality. For head office support assessment, foreign bank head offices' operating environment risks, financial conditions and management capability, and supports to branches in China are contained.
Compared with the existing regulatory rating rules for foreign banks' branches, the measures adjust and optimize the weighting settings of rating factors and grading of ratings.
It resets the weightings of risk management, operation control, compliance and asset quality in core factors rating at 40 percent, 30 percent, 20 percent and 10 percent respectively so as to underpin the importance of compliance in rating and increase the rationality of the rating system.
It also improves setting of the special adjustment items by adding circumstances such as significant defects in operation and management or drastic risk surge caused by operating strategy adjustment to the items for extra score deduction.
As CBIRC announcement says, the measures taking effect from November 30, 2022, will help guide foreign banks' branches in China to optimize their risk management systems and risk governance levels. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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