Sunday, September 14, 2008

China Banking Regulatory Commission

The China Banking Regulatory Commission is an agency of China authorized by the to regulate the Chinese banking sector.

Main functions

*Formulate supervisory rules and regulations governing the banking institutions;
*Authorize the establishment, changes, termination and business scope of the banking institutions;
*Conduct on-site examination and off-site surveillance of the banking institutions, and take enforcement actions against rule-breaking behaviors;
*Conduct fit-and-proper tests on the senior managerial personnel of the banking institutions;
*Compile and publish statistics and reports of the overall banking industry in accordance with relevant regulations:
*Provide proposals on the resolution of problem deposit-taking institutions in consultation with relevant regulatory authorities;
*Responsible for the administration of the supervisory boards of the major State-owned banking institutions; and Other functions delegated by the State Council;

Supervisory focuses

*Conduct consolidated supervision to assess, monitor and mitigate the overall risks of each banking institution as a legal entity;
*Stay focused on risk-based supervision and improvement of supervisory process and methods;
*Urge banks to put in place and maintain a system of internal controls:
*Enhance supervisory transparency in line with international standards and practices。

Regulatory objectives

* Protect the interests of depositors and consumers through prudential and effective supervision;
* Maintain market confidence through prudential and effective supervision;
* Enhance public knowledge of modern finance though customer education and information disclosure;
* Combat financial crimes.

Supervisory and regulatory criteria

* Promote the financial stability and facilitate financial innovation at the same time;
* Enhance the international competitiveness of the Chinese banking sector;
* Set appropriate supervisory and regulatory boundaries and refrain from unnecessary controls;
* Encourage fair and orderly competition;
* Clearly define the accountability of both the supervisor and the supervised institutions; and
* Employ supervisory resources in an efficient and cost-effective manner.

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