Xinhua News Agency, Beijing, January 16 (Reporter Li Yanxia) The reporter learned from the China Banking and Insurance Regulatory Commission that the China Banking and Insurance Regulatory Commission, in conjunction with the National Development and Reform Commission, the People’s Bank of China, and the China Securities Regulatory Commission, has formulated working procedures for creditor committees of financial institutions, clarifying the role of the debt committee, The coverage of members of the Debt Committee has been expanded.
The China Banking Regulatory Commission stated that in recent years, the China Banking Regulatory Commission has established a creditor committee system for banking financial institutions, which has alleviated the credit risks of banking financial institutions in an orderly manner.
The work rules summarized the characteristics of the debt problems of risky enterprises in the early stage and the successful experience in the operation of the debt committee, and further improved the existing debt committee system in accordance with the requirements of the new situation and new tasks.
The "Notice on Printing and Distributing the Working Procedures of Creditor Committees of Financial Institutions" clarified that the creditor committees are consultative, self-disciplined, and temporary organizations that carry out their work in accordance with the principles of marketization, rule of law, fairness and justice, and categorized policy implementation.
The notice expanded the coverage of the members of the Debt Committee, clarifying that non-financial debt companies with large debt scales and difficulties, 3 or more holding claims (including loans, bonds, etc.), asset management products holding claims, Banking insurance institutions and securities and futures fund management institutions, etc., as bond trustees may initiate the establishment of debt committees.
The notice clearly stated that in principle, the debt committee shall be established by financial institutions or their branches that directly hold creditor's rights to the enterprise.
Involving central enterprises or major and complex enterprise groups, debt committees may be established at the level of the corporate headquarters of financial institutions.
If the joint credit enterprise has debt risks, the lead bank may promote the establishment of a debt committee.
The notice also clarifies the requirements for cracking down on evasion of financial debts, supports financial institutions in jointly cracking down on evasion of financial debts, and gives full play to the role of industry self-discipline and dishonesty punishment mechanisms.