Zhongxin Finance, January 14th, according to the official website of the China Banking and Insurance Regulatory Commission, on the 14th, the China Banking and Insurance Regulatory Commission issued the "Administrative Measures for the Related Transactions of Banking and Insurance Institutions", which made a series of regulations on the related transactions of banking and insurance institutions.

  According to the "Measures", the credit balance of a banking institution to a single related party shall not exceed 10% of the net capital of the banking institution at the end of the previous quarter.

The total credit extension balance of a banking institution to a group customer of a single affiliated legal person or unincorporated organization shall not exceed 15% of the net capital of the banking institution at the end of the previous quarter.

The credit balance of the banking institution to all related parties shall not exceed 50% of the net capital of the banking institution at the end of the previous quarter

.

  When calculating the credit balance, the margin deposit provided by the related party and the pledged bank deposit certificate and treasury bond amount can be deducted when the credit is granted.

Banking institutions and related parties conducting inter-bank business shall comply with the relevant regulations on inter-bank business at the same time.

The inter-bank business between banking institutions and domestic and overseas affiliated banks, and the business between foreign-funded banks and banks within the parent bank group may not be subject to the ratio provisions listed in paragraph 1 of this article and the standards for major affiliated transactions in Article 14 of these Measures.

  The Measures also stipulate that banking and insurance institutions shall not evade approval or regulatory requirements for major related-party transactions by covering up related relationships, splitting transactions, and other concealed methods.

Banking institutions are not allowed to provide funds to related parties directly through or through inter-bank, wealth management, off-balance sheet and other businesses, breaking the ratio limit or violating regulations

.

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