Banking regulatory bureaus, policy banks, state-owned commercial banks, joint-stock commercial banks, China Postal Savings Bank, trust companies, enterprise group finance companies and financial leasing companies directly supervised by CBRC:
The Twelfth Five-Year Plan clearly proposes to participate in a new round of revision of international financial standards. On December 16th, 21, the Basel Committee issued the Third Basel Accord (Basel
III), and required the member economies to complete the formulation and revision of corresponding regulatory laws and regulations within two years. The new regulatory standards will be implemented on January 1st, 213, and the standards will be fully met by January 1st, 219. The Third Basel Accord establishes a new financial supervision mode combining micro-prudence with macro-prudence, greatly improves the capital supervision requirements of commercial banks, and establishes a global consistent quantitative standard for liquidity supervision, which will have a far-reaching impact on the business model of commercial banks, the stability of the banking system and even the macro-economy implementation. In order to promote the implementation of new international regulatory standards for China's banking industry and enhance the stability of the banking system and the international competitiveness of domestic banks, this guidance is formulated.
I. Overall objectives and guiding principles
(I) Overall objectives
According to the reform, development and supervision of domestic banking industry, we will build a banking supervision framework that is future-oriented, in line with national conditions and in line with international standards, promote the implementation of the "Twelfth Five-Year Plan" in the banking industry, further deepen the reform, change the development mode, improve the development quality and enhance the stability and competitiveness of the banking industry.
(II) Guiding Principles
1. Based on the reality of the domestic banking industry and drawing lessons from the achievements of international financial supervision reform, improve the prudential supervision standards of the banking industry. Based on the reality of China's banking reform and development, we should adhere to effective supervision practice, learn from the Third Basel Accord, improve the sound standards of China's banking industry, and build a set of prudential supervision system arrangements to maintain the long-term sound implementation of the banking system.
2. Macro-prudential supervision and micro-prudential supervision are organically combined. Considering China's economic cycle and the development trend of financial market as a whole, we should scientifically design regulatory standards such as capital adequacy ratio, leverage ratio, liquidity and loan loss provision and reasonably determine regulatory requirements, which reflect the requirements of prudent supervision based on countercyclical macro view and fully reflect the individual risks and systemic risks faced by banking financial institutions.
3. the unification of regulatory standards and the flexibility of regulatory practice are combined. In order to ensure the fairness of banking competition, the regulatory standards applicable to all kinds of banking financial institutions should be uniformly set, while the regulatory standards for systemically important banks should be appropriately raised, and differentiated transitional arrangements should be set according to the situation of different institutions to ensure the smooth transition of all kinds of banking financial institutions to the new regulatory standards.
4. Give overall consideration to supporting sustained economic growth and maintaining the stability of the banking system. The banking system is the main channel of China's financing system. During the transition period, the regulatory authorities will closely monitor the micro-impact of the new regulatory standards on banking financial institutions and the macro-view effect on the implementation of the real economy, comprehensively evaluate the costs and benefits, and strengthen policy coordination with relevant departments to avoid the possible negative impact of the implementation of the new regulatory standards on credit supply and economic development.
II. Improving the prudential supervision standards of the banking industry
According to the new supervision standards of bank capital and liquidity determined by the Third Basel Accord, on the basis of comprehensively evaluating the effectiveness of the existing prudential supervision system, we will improve the supervision standards of capital adequacy ratio, leverage ratio, liquidity and loan loss provision, establish a more forward-looking and organically unified prudential supervision system arrangement, and enhance the ability of banking financial institutions to resist risks. ?
(1) Strengthen the supervision of capital adequacy ratio
1. Improve the calculation method of capital adequacy ratio. First, strictly define capital and improve the loss absorption capacity of regulatory capital. Revise the regulatory capital from the current two-level classification (tier 1 capital and tier 2 capital) to three-level classification, namely, core tier 1 capital, other tier 1 capital and tier 2 capital; Strictly implement the deduction provisions for core tier 1 capital, and improve the loss-absorbing ability of capital instruments. The second is to optimize the calculation method of risk-weighted assets and expand the risk scope of capital coverage. Adopting differentiated credit risk weighting methods to promote banking financial institutions to improve their credit risk management capabilities; Clarify the capital requirements of operational risk; Improve the risk weight of complex financial instruments such as transactional business, asset securitization business and OTC derivatives trading. ?
2. Improve the regulatory requirements for capital adequacy ratio. Adjust the current two minimum capital adequacy requirements (the ratio of tier-one capital and total capital to risk assets is not less than 4% and 8% respectively) to three levels of capital adequacy requirements: First, clarify the three minimum capital adequacy requirements, namely, the core tier-one capital adequacy ratio, tier-one capital adequacy ratio and capital adequacy ratio are not less than 5%, 6% and 8% respectively. The second is to introduce a countercyclical capital supervision framework, including: 2.5% retained excess capital and -2.5% countercyclical excess capital. The third is to increase the additional capital requirement of systemically important banks, tentatively set at 1%. After the implementation of the new standard, the capital adequacy ratios of systemically important banks and non-systemically important banks are not less than 11.5% and 1.5% respectively under normal conditions; If there is systematic excessive credit growth, commercial banks need to accrue countercyclical excess capital. ?
3. Establish regulatory standards for leverage ratio. Introduce the regulatory standard of leverage ratio, that is, the ratio of tier-one capital to the adjusted balance of assets on and off the balance sheet is not less than 4%, make up for the shortage of capital adequacy ratio, and control the accumulation of leverage ratio of banking financial institutions and banking system.
4. Arrange the transition period reasonably. The new capital supervision standards will be implemented from January 1, 212, and systemically important banks and non-systemically important banks should reach the new capital supervision standards by the end of 213 and 216 respectively. After the transition period, all banks should disclose their capital adequacy ratio and leverage ratio according to the new regulatory standards. ?
(II) Improve liquidity risk supervision
1. Establish a multi-dimensional liquidity risk supervision standard and monitoring index system. Establish a number of liquidity risk supervision and monitoring indicators, such as liquidity coverage ratio, net stable financing ratio, liquidity ratio, loan-to-deposit ratio, dependence on core liabilities, liquidity gap ratio, customer deposit concentration and interbank liabilities concentration, among which the liquidity coverage ratio and net stable financing ratio shall not be less than 1%. At the same time, promote banking financial institutions to establish a multi-scenario, multi-method, multi-currency and multi-time span internal monitoring index system for liquidity risk.
2. guide banking financial institutions to strengthen liquidity risk management. Further clarify the prudential supervision requirements of liquidity risk management of banking financial institutions, improve the level of refinement and specialization of liquidity risk management, strictly supervise and inspect measures, correct imprudent behaviors, urge commercial banks to reasonably match the term structure of assets and liabilities, and enhance the ability of the banking system to cope with liquidity pressure shocks. ?
3. Arrange the transition period reasonably. The new liquidity risk supervision standard and monitoring index system have been implemented since January 1, 212. The liquidity coverage ratio and the net stable financing ratio are given two years and five years respectively. Banking financial institutions should meet the regulatory requirements of liquidity coverage ratio and the net stable financing ratio by the end of 213 and 216 respectively.
(III) Strengthen the supervision of loan loss provision
1. Establish the supervision standard of loan provision ratio and provision coverage ratio. The loan provision ratio (the ratio of loan loss provision to loans) is not less than 2.5%, and the provision coverage ratio (the ratio of loan loss provision to non-performing loans) is not less than 15%. In principle, the regulatory requirements for loan loss provision of banking financial institutions are determined according to the higher method.
2. Establish a dynamic adjustment loan loss reserve system. According to the different stages of economic development, the differences in loan quality and profitability of banking financial institutions, the regulatory requirements for loan loss provision will be dynamically and differentially adjusted: the requirements for loan loss provision will be appropriately raised in the economic upswing period, and appropriately lowered in the economic downturn period according to the loan write-off; According to the loan quality and profitability of a single banking financial institution, the loan loss reserve requirements are appropriately adjusted. ?
3. transitional arrangements. The new standards have been implemented since January 1, 212, and systemically important banks should meet the standards before the end of 213; For non-systemically important banks, the regulatory authorities will set differentiated transitional arrangements and encourage them to meet the standards in advance: banking financial institutions with strong profitability and less provision for loan losses should meet the standards before the end of 216; Individual banking financial institutions with low profitability and more loan loss reserves should meet the standards before the end of 218. ?
iii. enhancing the effectiveness of systemically important bank supervision
according to the business model and supervision practice of large domestic banks, the supervision department will strengthen the supervision of systemically important banks from the aspects of market access, prudential supervision standards, continuous supervision and supervision cooperation.
1. Make clear the definition of systemically important bank. The evaluation of domestic systemically important banks mainly considers four factors: scale, relevance, complexity and substitutability, and the regulatory authorities will establish an evaluation methodology and a continuous evaluation framework for systemically important banks.
2. Maintain the firewall arrangement and improve the pre-admission supervision. In order to prevent the business model of systemically important banks from being too complicated and reduce the contagion of risks in different financial markets, we continue to adopt structural restrictive supervision measures: First, we will maintain the firewall between the existing banking system and the capital market, between banks and controlling shareholders, and between banks and affiliated institutions to prevent cross-border and cross-industry contagion of risks. Second, strictly restrict banking financial institutions from engaging in complex and highly leveraged trading business to avoid taking excessive risks. The third is to prudently promote the comprehensive management pilot. A formal post-evaluation system will be established for banks that conduct pilot comprehensive operations. For banks that fail to reach the average profit level of their industries within a reasonable time limit, the regulatory authorities will require them to quit the industry.
3. Improve prudential supervision requirements. In addition to additional capital requirements, the regulatory authorities will put forward higher prudential supervision requirements for systemically important banks as appropriate to enhance their ability to cope with external shocks. First, systemically important banks are required to issue self-help bonds to improve their ability to absorb losses. The second is to improve liquidity supervision requirements. The third is to further tighten the restrictions on large-value risk exposure and moderately reduce the proportion of loans made by systemically important banks to single borrowers and group customers to net capital. Fourth, improve the regulatory standards of consolidated risk management at the group level, including risk preference setting at the group level, unified risk management policies, information management system construction, intra-group transactions, etc. ?
4. Strengthen continuous supervision. First, the supervision resources are inclined to systemically important banks, giving front-line supervisors broader powers and strengthening supervision over the decision-making process and implementation process of systemically important banks, so as to identify risks and take intervention measures as soon as possible. The second is to enrich and expand the suite off-site supervision system, improve the risk supervision and evaluation framework of systemically important banks, and timely warn, effectively identify and quickly dispose of risks. The third is to further enhance the ability of systemically important banks to accurately strike on-site inspections, urge systemically important banks to strengthen corporate governance and risk management, and prevent and correct unsafe and unstable business practices. The fourth is to combine functional supervision with institutional supervision, and adopt supervision means such as product analysis, model verification, stress testing and peer evaluation to ensure that supervision technology can adapt to the increasingly complicated trend of systemically important banking business and organization. Fifth, guide and supervise systemically important banks to formulate recovery and disposal plans and crisis management plans, and enhance their self-protection ability. ?
5. Strengthen regulatory cooperation. In terms of cross-border cooperation, we will establish an evaluation mechanism for the regulatory capacity of overseas regulatory authorities, improve the mechanism of joint regulatory meetings of banks with important cross-border operating systems, improve the quality of information exchange, and strengthen cooperation in market access, off-site supervision, on-site inspection and crisis management. In terms of cross-industry cooperation, under the unified leadership of the State Council, the regulatory authorities will strengthen coordination and cooperation with the People's Bank of China, the securities regulatory authorities and the insurance regulatory authorities, build a "seamless" financial regulatory system, and improve the risk assessment of non-banking business of banking groups. ?
iv. further promoting the implementation of the new capital accord
scientific measurement and evaluation of capital and risk-weighted assets is the basis for the implementation of the new regulatory standards. Banking financial institutions should continuously strengthen risk management in terms of corporate governance, policy process, risk measurement, data base and information technology system in accordance with the general requirements of "the New Capital Accord and the Third Basel Accord are promoted simultaneously, and the first pillar and the second pillar are considered as a whole". In 211, the regulatory authorities will revise the Measures for the Management of Capital Adequacy Ratio. Banking financial institutions should accurately measure regulatory capital requirements according to the relevant methods established in the new Measures for the Administration of Capital Adequacy Ratio, covering all kinds of risks in an all-round way; At the same time, build a comprehensive risk management framework, improve the internal capital evaluation program, and strengthen the micro-foundation for the steady implementation of the banking industry.
For banking financial institutions whose assets on and off the balance sheet, international activity and business complexity have reached a certain level, the high-level capital measurement method in the New Capital Accord should be implemented according to the new regulatory requirements. At present, the first batch of implementing banks that have completed a round of pre-evaluation should actively rectify the main problems in the implementation of the first pillar according to the evaluation opinions, and actively promote the construction of the second pillar and the third pillar, so as to apply for formal implementation as soon as possible. Other banking financial institutions that should implement high-level methods or voluntarily according to regulatory requirements should strengthen communication with regulatory authorities and formulate implementation plans as soon as possible.
for other banking financial institutions that don't implement the high-order capital measurement method, the regulatory capital requirements for market risk and operational risk should be measured by adopting the standard method required by the new Capital Adequacy Ratio Management Measures on the basis of the existing credit risk capital measurement at the end of 211; In accordance with the relevant requirements of the second pillar, we will promptly establish an internal capital adequacy evaluation program to identify, evaluate, monitor and report all kinds of major risks, ensure that the capital level is compatible with the risk situation and management ability, and ensure that the capital planning is compatible with the bank's operating conditions, risk trends and long-term development strategies. Before the end of 216, all banking financial institutions should establish a comprehensive risk management framework and an internal capital adequacy ratio assessment program that are suitable for the bank's scale and business complexity.
V. Work Requirements
The implementation of the new regulatory standards is a long-term systematic project that concerns the whole region. Banking financial institutions should accurately understand the essence of the new regulatory standards, fully understand the significance of implementing the new regulatory standards, strengthen cooperation, and actively and steadily make all preparations for the implementation of the new regulatory standards.
(I) Formulating supporting regulatory regulations
In order to ensure the implementation of the new regulatory standards as scheduled, in 211, the regulatory authorities will revise and improve the Measures for the Administration of Capital Adequacy Ratio of Commercial Banks, as well as the relevant policies on liquidity risk supervision and systemically important banking supervision, for the implementation of the new regulatory standards.