The CBRC Released the Recent Focuses of Regulation and Supervision


Since the beginning of 2017, the China Banking Regulatory Commission (CBRC) has identified the general directions and key areas of banking regulation and supervision according to the principle of making progress while maintaining stability. On one hand, the banking sector should be guided to focus on main business, support supply-side structural reform, strengthen reform and innovations in systems and mechanisms, as well as improve its capacity to serve the real economy. On the other hand, the CBRC should intensify banking supervision, guard against and resolve financial risks, maintain financial security and stability, and firmly defend the bottom line of avoiding systematic risks.


As for guiding the banking industry in serving the real economy, the CBRC issued the Guiding Opinions on Enhancing the Quality and Efficiency of the Banking Industry Serving Real Economy. It clarified that the banking industry should strongly support major national strategies, i.e. the Belt and Road Initiative, coordinated development of Beijing, Tianjin and Hebei, and Yangtze River Economic Belt Initiative, actively promote industrial transformation and upgrading, and continuously enhancing financial service level of agro-related areas and small and micro-sized enterprises. Meanwhile, the CBRC should put forward detailed measures in the following aspects, such as promoting reform and innovation in system and mechanism of the banking industry, optimizing external environments, improving relevant infrastructure and enhancing the internal impetus of the banking industry to serve the real economy.


The CBRC actively guided large or medium-sized commercial banks in setting up financial inclusion affairs departments, urged them to build scientific governance mechanisms and organizational structures, in a bid to improve the coverage, availability and satisfaction of financial service.


In light of risk prevention and control, the CBRC should well conduct the investigation of loopholes in regulatory systems, speed up the efforts to make up for the deficiencies in regulatory systems according to international standards, firmly combat any violations of laws and regulations, and guard against the concentration and contagion of risks so as to better serve the real economy.


Controlling and eliminating risks helps enhance the capacity of serving the real economy and promote the sound and sustainable development and prosperity of the entire financial system. Latest data show that NPL ratio of commercial banks was 1.74%; the provision coverage ratio was 178.8%; Capital adequacy ratio was 13.3%. At present, the banking industry, together with the entire financial system, has achieved stable operation in general and risks are under control.


As an important part of national security, financial security also functions as a major basis for stable and healthy economic development. The CBRC should attach paramount importance to guarding against banking risks. Strengthening regulation and tackling violations would play a significant role in promoting sound development of the banking industry and enhancing economic and financial vitalities. The CBRC will make classified risk solution plans and push banking institutions to conduct legal and compliant operations so as to maintain financial security and stability.




Copyright: China Banking Regulatory Commission
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