held 2012 Large Bank Supervisory Work Conference
January 11th to 12th, the CBRC held the 2012 large bank supervisory work conference
which reviewed the developments and supervisory progress of large banks in
2011, analyzed the latest situation and challenges facing large banks’ reform, development
and supervision, and outlined the supervisory focuses in 2012. Chairman SHANG
Fulin attended and addressed the meeting, while Vice Chairman ZHOU Mubing presided the conference.
conference reviewed and acknowledged the developments and supervisory progress
of large banks in 2011. Firstly, the offsite surveillance system featuring
CARPLES risk indicators framework was fully implemented. While CARPLES
framework was incorporated into the internal assessment mechanism of banks, the
assessment was conducted both on a solo and consolidated basis, together with
the application of systemic supervisory benchmark. Secondly, corrective work
was further promoted to sort out lending to Local Government Funding Platforms
(LGFP), with both dynamic monitoring and on-site examination undertaken to
cross-check the bottom line and mitigate risks. Thirdly, broad examinations on
compliance of credit extension were carried out, with a series of problematic loans
being resolved and violations of rules being addressed. Fourthly, the licensing
work was further improved, including the optimization in licensing procedures
and other services. Fifthly, banks’ sound operations were further emphasized.
The corporate governance was further enhanced by intensifying supervision of
the performance of directors, while banks’ risk management capabilities further
strengthened by conducting assessment on banks to implement Basel II. Last but
not least, banks were guided to better serve the real economy through implementing
new rules on loan disbursement, improving financial services and stepping up
credit support to major national projects and micro-business.
the conference gained consensus that the year 2012 will continue to be denominated
by lackluster global economic growth and daunting challenges facing domestic
economy. As the major player of the banking sector, large commercial banks are
expected to adjust its growth rate, better implement new rules of loan disbursement,
gradually mitigate risks, promote business model transfer and improve financial
services along the way.
conference outlined the concrete supervisory work of large banks in 2012. First
is to give full play to on-site examination to identify and mitigate major
risks, including credit, market and operational risks, while at the same time
to guide banks to perform dynamic stress tests. Second is to take advantage of
implementing new international regulatory rules to enhance the supervision on
systemically important banks (SIBs). CARPLES framework should be integrated
into the supervision of SIBs so as to improve the consolidated supervisory capability and
improve crisis management contingency planning. Third is to urge banks to
establish risk review compliance planning and capital replenishment measures in
the process of implementing Basel II. Fourth is to accelerate the issuance of
guidelines on banks performance assessment, call banks to establish sound
annual operational planning and improve performance assessment mechanism. Fifth
is to require banks to better serve the real economy through implementing
national supporting rules on micro-business and rural undertakings, sorting out
fee-charging banking activities and promoting banking innovation.
conference was attended by director-generals of all the CBRC supervisory
departments, local offices, and chairmen, presidents, chairmen of supervisory
board and other senior executives of five large commercial banks.