The evaluation method of systemically important banks has been implemented! 30 banks were included in the evaluation

category:Finance
 The evaluation method of systemically important banks has been implemented! 30 banks were included in the evaluation


It is understood that this assessment method is only the basis for improving the regulatory framework of systemically important banks in China. The additional regulatory provisions are in the process of internal consultation, and will be open to the public after they mature. The central bank and the China Banking and Insurance Regulatory Commission will also issue a list of systemically important banks.

Strengthening the supervision of systemically important financial institutions

The reporter learned that in November this year, the Financial Stability Board (FSB) has just updated the list of global systemically important banks (g-sibs), among which Chinas four major banks are all listed. In addition, Chinas Bank of communications, China Merchants Bank, industrial development, Shanghai Pudong development, CITIC, Everbright, Minsheng, Ping An, Guangfa, Huaxia Bank, Bank of Beijing and Bank of Shanghai have also entered the scope of global systemically important banks.

From the perspective of international practice, European and American countries have strengthened the central banks supervision of systemically important financial institutions and large banks in regulatory reform after deeply reflecting on the lessons of the international financial crisis. The United States has implemented higher prudential supervision standards for bank holding companies with assets of more than 100 billion US dollars. At the same time, it has set up a large institutional supervision coordination committee (liscc) within the Federal Reserve to supervise 11 systemically important banks.

The European regulatory system reform is more thorough. Since 2014, a single regulatory mechanism has been implemented, and the supervision power of 19 euro area countries, about 117 banks and financial holding companies has been received from the European Central Bank, accounting for about 81% of the total assets of the euro area banking industry. In addition, in 2019, according to the European Banking authority (EBA), a total of 187 domestic systemically important banks were identified in 31 European countries, generally requiring an increase in core tier 1 capital requirements of 0.25% to 2%.

It is understood that the evaluation methods for systemically important banks issued this time are the rules for the identification of domestic systemically important banks (d-sibs). The comprehensive evaluation is carried out from four dimensions of scale, relevance, substitutability and complexity, which is consistent with international practice and is more comprehensive than using scale to evaluate the systemic importance of banks. In addition, the evaluation method focuses on the importance of the bank itself, which measures the impact of the institutions risk on the financial system, which is different from the evaluation of the risk level.

Additional regulatory provisions will be open for comment

The reporter noted that the central bank pointed out in the feedback from the public consultation on the measures that Chinas financial system is mainly indirect financing, and domestic banks have large scale, cross regional and cross industry situations. Therefore, the threshold of systemically important banks is lowered from 300 to 100, and the number of selected systemically important banks will be expanded.

According to the evaluation method, there are 30 banks included in the evaluation scope. By the end of 2019, the total assets of 30 banks exceeded 200 trillion yuan, accounting for more than 70% of the total assets of the banking industry.

In recent years, the peoples Bank of China and the China Banking and Insurance Regulatory Commission have done a lot of solid work on the evaluation and supervision of Chinas systemically important financial institutions.

It is understood that this assessment method is only the basis for improving the regulatory framework of systemically important banks in China. The additional regulatory provisions are in the process of internal consultation, and will be open to the public after they mature. The central bank and the China Banking and Insurance Regulatory Commission will also issue a list of systemically important banks.

Industry experts told reporters that systemically important banks should be strictly evaluated and identified, and the number should not be too much or too few. Too many banks will easily lead to misreading of the concept of systemically important banks, and too few of them can achieve the corresponding policy effect. To strengthen the supervision of systemically important banks, one of the key points is to avoid moral hazard, and not to form the illusion of entering the safe and honor list.

In the follow-up additional supervision, more attention will be paid to taking prior regulatory measures, requiring systemically important banks to formulate recovery and disposal plans, establish and improve self-help mechanism in the daily operation process, improve self-help ability and implement self-help resources, instead of forcing public resources to rescue after major risks occur. Encourage banks to reduce complexity, improve transparency and reduce systemic risk. In addition, the central bank said that it would focus on early corrective measures to early warn the risk of excessive business expansion, excessive credit concentration and high complexity, so as to avoid unnecessary risks borne by systemically important banks and avoid passively relying on capital to absorb losses. Systemically important banks are the ballast stone and wind vane of Chinas financial system and the main force of serving the real economy. Industry insiders generally believe that through the evaluation of systemically important banks and subsequent supervision, the combination of macro Prudential and micro Prudential, and the implementation of normal monetary policy, Chinas systemically important banks will be stable and far-reaching. Editor: Chen Yu source: Shanghai Securities News Author: Huang Zihao editor in charge: Zhong Qiming_ NF5619