Photo taken in April 2018 shows the building of China Banking and Insurance Regulatory Commission. (Xinhua/Li Xin)
BEIJING, Feb. 13 (Xinhua) -- Commercial banks in China are to encounter a new set of measures for classification of their financial asset risks as from July 1, 2023, reported Xinhua Finance on February 11.
The rules, jointly released by China Banking and Insurance Regulatory Commission and People's Bank of China on February 11, aim at further promoting commercial banks to precisely identify and appraise their credit risks and reflect the true quality of their assets.
In the principle of authenticity, timeliness, prudence and independence, commercial banks are required to classify the risks of all their financial assets that carry credit risks and are on or off their balance sheets.
Compared with the lending risk classification guidance issued in 2007, the new measures expand the scope of financial assets for risk classification.
The measures also highlight a classification philosophy centering upon the performance capacity of debtors and further defining the objective indicators and requirements for risk classification. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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