,China
7 views

China orders banks, insurers to draft 'living wills': report

This is to ensure that troubled financial institutions won't end up needing costly bailouts.

The China Banking and Insurance Regulatory Commission (CBIRC) is now requiring sizable banks and insurers to prepare “living wills" in the event that they encounter financial difficulties, reports Reuters.

The goal for such recovery plans is to ensure that Chinese financial institutions don’t end up needing costly bailouts in the wake of risk events without contingency plans, and to maintain financial stability, the watchdog said.

Banks, rural credit cooperative and other deposit-taking institutions with consolidated assets at home and abroad of no less than $47b (CNY300b) should draft such plans, as well as insurers with no less than $31b (CNY200b) of total domestic and international on-book assets.

In addition, eligible financial institutions should first make use of their own assets and ask for help from their own shareholders before turning to the government for support, CBIRC said.

A grace period will be given for the implementation of the rules, the regulator added, without stating specific deadlines.

Here’s more from Reuters.

Get Asian Banking & Finance in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Until October, 1% of each transaction made using the card will be donated to Kantha Bopha Children's Hospital.
It’s meant to further support its securities services operations in Busan.
Called Project Nexus, the blueprint outlines how countries can integrate their retail payment systems onto a single cross-border network.
Local financial firms are expected to remain resilient even should the economy slip into a recession again.
The number of HNWIs is expected to reach 3.9 million in 2021 or 60.6% of the population.
Banks have to remain consistent and continuous in testing best practices.
Shares were priced at the top end, at KRW39,000 ($34).
In January, 1.2 million transactions were carried out via the SGQR.
Its launch will require legal changes to the nation’s foreign exchange and IT rules.
But less than half of consumers are impressed with the digital financial services currently offered.
Treasury teams can mobilize liquidity and fund intraday payments in real-time.
Customers have the option to pay their tax balances in full or partially.