China Banking Regulatory Commission
Established in 2003, the China Banking Regulatory Commission (CBRC) is responsible for the regulation and supervision of Chinas banking sector. The CBRC is an independent agency under the State Council, the Central Peoples Government of the Peoples Republic of China.
The primary responsibilities of the CBRC are the development of measures and policies to ensure the stability of the banking system and to prevent and fight money laundering, fraud and other crimes. The CBRC also acts as a regulator for the banking industry, setting standards, issuing guidelines, carrying out inspections of financial institutions, and supervising the operations and activities of banking organizations.
The CBRC has four main areas of responsibility: supervision and regulation of the banking industry, enforcement of rules in the banking sector, enforcement of international standards, and coordination of related banking regulation.
The CBRC focuses on three main elements: risk assessment and management, consumer protection, and financial innovation and service development.
The risk assessment and management efforts include establishing capital requirements, conducting stress tests, and reviewing the creditworthiness of banking institutions periodically. The consumer protection efforts include making sure banks provide customers with accurate and timely information and ensuring fairness in such areas as interest rates, penalty fees, and dispute resolution. The financial innovation and service development efforts include promoting the development and use of new banking products and services in China that are safe and efficient.
The CBRC carries out its supervisory work as part of a larger financial system risk management strategy. The CBRC has developed a comprehensive framework that includes risk control functions such as credit risk management and capital adequacy requirements for banks. The risk control framework also includes policies such as the classification of credit assets, monitoring of relevant banking activities, and implementation of corrective measures in order to ensure safety, soundness, and stability of the banking system.
In order to ensure the safety of the banking system, the CBRC also implements a regulatory system that covers areas such as capital requirements, know your customer (KYC) regulations, customer identity verification, and anti-money laundering regulations.
The CBRC also takes an active role in promoting the development of a stable, open, and well-functioning financial markets. This includes promoting the development of innovative financial products and services, such as securitization, mutual fund markets, venture capital funds, and offshore banking services. The CBRC has also established channels and mechanisms for the free flow of capital and investment between China and the world.
The CBRC is committed to an open and transparent regulatory regime that is designed to protect consumers, promote financial stability, and encourage economic development. The CBRC strives to achieve its goals through the development and implementation of regulations, guidelines, and policies that are consistent and fair; it also plays an active role in supporting and strengthening the banking sector. The CBRC will continue to be proactive and engaged in policy-making and enforcement in order to ensure that the banking sector remains stable and successful.
