The CBRC Issued the Decision on Amending the Implementation Rules on Administrative Licensing of Chinese Commercial Banks

 

Recently, in order to implement the administrative approval reform, further streamline administration and delegate power, and enhance banks’ risk resistance capacity, the CBRC issued the Implementation Rules on Administrative Licensing of Chinese Commercial Banks (hereinafter referred to as the “Decision”).

 

The Decision made amendments to 8 articles in the Implementation Rules on Administrative Licensing of Chinese Commercial Banks. Major amendments include: 1) the approval process of “preparation for establishment” and “opening” of banks’ sub-branches are combined into one, which is the “opening” approval process; 2) the “exit” and “entry” processes for domestic commercial banks to set up, invest in, and purchase domestic financial institutions are integrated; 3) the requirements for domestic commercial banks to set up, invest in, and purchase domestic financial institutions and issue debts and capital supplementary instruments are optimized; 4) the approval process of the qualification of senior executives is further simplified: where the senior executives take positions at the same or lower level in other banking institutions which fall into the same category compared with previous ones, they are no longer required to obtain prior approval from the CBRC, but only required to put on records; and, 5) the requirements for foreign banks to invest in domestic commercial banks are explicitly stated.

 

The above amendments embodied CBRC’s efforts in further streamlining administration and delegating power and optimizing the approval process,  and also reflected CBRC’s determination to support banks to supplement capital, enhance banks’ capacity to resist risks, guarantee the sound and stable development of the banking sector, and improve inclusive financial services.

 

While further streamlining administration and delegating power, the CBRC will also make continuous efforts in improving the prudential rules and regulations, intensifying on-site examinations and regulatory penalty, and defending the bottom line of no systemic or regional financial risks.

 

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