CHONGQING, Dec. 4, (Xinhua)--China Banking Regulatory Commission (CBRC) Chongqing Office has recently launched mechanisms of banking business innovation regulation interaction and risk assessment for China (Chongqing) Pilot Free Trade Zone (Chongqing FTZ). With the addition of relevant policies launched earlier, the banking regulation policy system of Chongqing FTZ has been established.
The regulatory documents released this time are the Notice on Trying out the Mechanism of Banking Business Innovation Regulation Interaction in China (Chongqing) Pilot Free Zone and the Notice on Conducting Business Risk Assessment in China (Chongqing) Pilot Free Zone, aiming to explore a new model of innovative regulation.
Based on the mechanisms, CBRC Chongqing Office will guide institutions in conducting self-assessment and regulatory audit on new non-administrative licensing products (businesses) under certain conditions in the fields that are not covered by the existing access regulations, covered by the existing access regulations but prescribed implicitly and meet the needs of the real economy and financial policy orientation but have no detailed operation rules. And it will send feedback on assessment results based on materials provided by institutions, and guide institutions in conducing pioneer operations of innovative business in Chongqing FTZ.
To effectively prevent financial risks in the open environment of Chongqing FTZ, the mechanisms require banking financial institutions to prudentially assess the risks in key fields, including market risk, counterparty credit risk, country risk and liquidity risk, and to establish a perfect mechanism of risk management in Chongqing FTZ.
Chongqing previously released the Guiding Opinions on Banking Financial Services in China (Chongqing) Pilot Free Trade Zone, the Notice on Printing and Issuing the Trial Implementation Rules for Simplifying the Method of Banking Institution and Executive Access to China (Chongqing) Pilot Free Trade Zone and the Notice on Establishing the System of Banking Statistical and Monitoring in China (Chongqing) Pilot Free Trade Zone.
CBRC Chongqing Office will conduct regulatory assessment and continuous supervision to banking financial institutions, take compulsory regulatory measures against the behavior of false self-assessment and violating laws, regulations and the rules of prudential regulation, including ordering to suspend business, and imposing administrative punishments in accordance with law on the institutions and responsible persons involved.
(Contributed by Zhang Chi, edited by Tong Wei)