Identifying my country’s Systemically Important Banks to Strengthen Supervision and Preventing Risks——Persons in charge of relevant departments of the People’s Bank of China and the China Banking and Insurance Regulatory Commission answered reporters’ questions on the “Measures for the Evaluation of Systemically Important Banks”

　　Identifying my country’s Systemically Important Banks to Strengthen Supervision and Preventing Risks——Persons in charge of relevant departments of the People’s Bank of China and the China Banking and Insurance Regulatory Commission answered reporters’ questions on the “Measures for the Evaluation of Systemically Important Banks”

　　Xinhua News Agency, Beijing, December 3 -

　　Xinhua News Agency reporter Wu Yu

　　In order to improve the regulatory framework for systemically important financial institutions in China, the People's Bank of China and the China Banking and Insurance Regulatory Commission jointly issued the "Measures for the Evaluation of Systemically Important Banks" on the 3rd.

Why evaluate my country's systemically important banks?

How to evaluate?

How to supervise in the future?

The heads of relevant departments of the People's Bank of China and the China Banking and Insurance Regulatory Commission answered reporters' questions on related issues.

　　Since the 2008 international financial crisis, strengthening the supervision of systemically important financial institutions and preventing "big to fail" problems have become an important part of the global financial regulatory reform.

　　The reporter learned that since 2011, the Financial Stability Board has released a list of global systemically important banks every year and has formed a relatively clear regulatory policy framework.

Four banks including Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and Construction Bank have all been selected into the list of global systemically important banks.

　　Why evaluate my country's systemically important banks?

The heads of relevant departments of the People’s Bank of China and the China Banking and Insurance Regulatory Commission stated that systemically important financial institutions are large in scale, highly complex, and highly related to other financial institutions. Once problems occur, they may be highly contagious to the financial system and affect macroeconomic operations It may also produce a larger impact.

　　Therefore, in accordance with the framework guidelines issued by the Basel Committee on Banking Supervision, countries have also established a domestic systemically important banking supervision policy framework based on their actual conditions.

In November 2018, the People's Bank of China, the China Banking Regulatory Commission and the China Securities Regulatory Commission jointly issued the "Guiding Opinions on Improving the Supervision of Systemically Important Financial Institutions", which clarified the overall institutional framework for the evaluation and identification, additional supervision, and restoration of systemically important financial institutions in my country .

　　The heads of relevant departments of the People's Bank of China and the China Banking and Insurance Regulatory Commission stated that the People's Bank of China, in conjunction with the China Banking and Insurance Regulatory Commission, has formulated an evaluation method to lay the foundation for the subsequent release of the list of systemically important banks and the implementation of additional regulatory requirements.

The "Measures for the Evaluation of Systemically Important Banks" came into effect on January 1, 2021, identifying my country's systemically important banks and publishing a list every year.

　　So, how to evaluate my country's systemically important banks?

　　The evaluation method clarifies the evaluation method, evaluation scope, evaluation process and work division of my country's systemically important banks, and establishes the evaluation index system of my country's systemically important banks from the four dimensions of scale, relevance, substitutability and complexity.

In the specific evaluation, the data submission template and data filling instructions will be sent to the participating banks, and the participating banks will be collected and evaluated.

　　According to the evaluation process, quantitative evaluation indicators are first used to calculate the systemic importance score of participating banks. Banks with a score of 100 are included in the initial list of systemically important banks.

Then combine other quantitative and qualitative information to make supervisory judgments and comprehensively evaluate the systemic importance of participating banks.

After the final list of systemically important banks is determined by the Financial Stability and Development Committee of the State Council, it will be jointly issued by the People's Bank of China and the China Banking and Insurance Regulatory Commission.

　　When talking about follow-up supervisory measures, the heads of relevant departments of the People's Bank of China and the China Banking and Insurance Regulatory Commission stated that the People's Bank of China will work with the China Banking and Insurance Regulatory Commission to formulate additional regulatory requirements for systemically important banks after the evaluation measures are released.

It is proposed to put forward regulatory requirements for systemically important banks in terms of additional capital, leverage ratio, large risk exposure, corporate governance, recovery plan, information disclosure, and data submission. An early correction mechanism will also be established to promote the reduction of systemically important banks. Complexity and systemic risks, establish and improve the internal capital restraint mechanism, enhance the ability of banks to resist risks and absorb losses, improve their self-rescue ability, and prevent "big to fail" risks.

　　The reporter learned that when formulating and implementing additional regulatory requirements, the People's Bank of China and the China Banking and Insurance Regulatory Commission will give full consideration to factors such as the macroeconomic situation, banks' capital supplement needs and services to the real economy, and rationally arrange the timing of their introduction.

　　The relevant department heads of the People’s Bank of China and the China Banking and Insurance Regulatory Commission stated that for different groups and types of systemically important banks, they will implement classified policies based on their operating characteristics and systemic risk performance, match differentiated additional regulatory implementation plans, and set reasonable transitional arrangements. , To ensure that the policy is neutral in impact and implemented in a stable and orderly manner.