China Banking Regulatory Commission
Encyclopedia
The China Banking Regulatory Commission (CBRC) is an agency of the People's Republic of China
(PRC) authorised by the State Council
to regulate the banking sector of the PRC except the territories of Hong Kong and Macau, both of which are special administrative region
s. In response to their swelling debt loads, undercapitalization and non-transparent business practices, the government of China recapitalized the banks and set up the CBRC as the country’s independent banking regulator in 2003. Liu Mingkang
was appointed its first chairman and served until 2011, when he was replaced by Shang Fulin
.
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
(PRC) authorised by the State Council
State Council of the People's Republic of China
The State Council of the People's Republic of China , which is largely synonymous with the Central People's Government after 1954, is the chief administrative authority of the People's Republic of China. It is chaired by the Premier and includes the heads of each governmental department and agency...
to regulate the banking sector of the PRC except the territories of Hong Kong and Macau, both of which are special administrative region
Special administrative region
A special administrative region, or SAR may be:People's Republic of China* Special Administrative Region of the People's Republic of China, self-governing country subdivision in Hong Kong and Macau...
s. In response to their swelling debt loads, undercapitalization and non-transparent business practices, the government of China recapitalized the banks and set up the CBRC as the country’s independent banking regulator in 2003. Liu Mingkang
Liu Mingkang
Liu Mingkang graduated from the University of London in 1987. In 1988 he received an MBA from the Cass Business School. He served as chairman of the China Banking Regulatory Commission from its creation in 2003 until he reached the retirement age of 65...
was appointed its first chairman and served until 2011, when he was replaced by Shang Fulin
Shang Fulin
Shang Fulin is a politician of the People's Republic of China. He served as president of the China Securities Regulatory Commission until October, 2011, when he was appointed to lead the China Banking Regulatory Commission.- Biography :...
.
Main functions
- Formulate supervisory rules and regulations governing the banking institutions;
- Authorise 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.