The third is to keep on upgrading supervisory trigger subsequent crises. These include, among tools and approaches. By drawing upon the best others, the lack of unified legal framework for practices of international banking supervision the mitigation of cross-border risk contagion and the Cbrc has been constantly upgrading its for the resolution of cross-border bank failure supervisory toolkit which comprises a set of basic uncertainty in the process of accounting standards and effective supervisory tools, while exploring convergence, new and arising problems brought by rarious new methods and approaches to enhance the new supervisory rules, continued expansion of the shadow banking sector, and the short-sighted The fourth is to encourage a pragmatic and profit-seeking zest innate to financial institutions proactive attitude in conducting supervision Looking internally, Chinese banking sector is Supervisory resources have been allocated in idden with its own problems such as irrational proportion to the significance and urgency of growth model, weakness in comprehensive risk supervisory concerns. Rules and regulations management, homogeneity of development are drafted. assessed and amended in time strategies among banks, just to name a few. As the Major problems and difficulties are confronted supervisor, we therefore must remain vigilant in in a courageous and serious manner, and post guiding the banking institutions through profound assessment is conducted on each of the important market adjustments and building up both their institutional arrangements and major supervisory financial and risk management strength actions, all of which aiming at a robust banking 2011 ushers in the twelfth Five-Year Plan for sector National Economic and Social Development. In Currently, substantial progress has been made this new era, the cbrc will continue to stoke the in international financial regulatory reform. New momentum of past reforms and development by building upon the tested traditions and good been agreed upon regarding capital adequacy. practices. We will brave difficulties head-on to counter-cyclical arrangements, resolution of"too. accelerate the strategic transformation of the big-to-fail, etc. That said, certain deeply-rooted banking sector so as to contribute to the broader factors that have contributed to the latest glob. undertakings of building a prosperous and financial crisis remain unresolved and may even harmonious China Chairman LIU Mingkang China Banking Regulatory Commission March 2011 Chairmans sta
9 Chairman LIU Mingkang China Banking Regulatory Commission March 2011 The third is to keep on upgrading supervisory tools and approaches. By drawing upon the best practices of international banking supervision, the CBRC has been constantly upgrading its supervisory toolkit which comprises a set of basic and effective supervisory tools, while exploring various new methods and approaches to enhance the supervisory effectiveness. The fourth is to encourage a pragmatic and proactive attitude in conducting supervision. Supervisory resources have been allocated in proportion to the significance and urgency of supervisory concerns. Rules and regulations are drafted, assessed and amended in time. Major problems and difficulties are confronted in a courageous and serious manner, and post assessment is conducted on each of the important institutional arrangements and major supervisory actions, all of which aiming at a robust banking sector. Currently, substantial progress has been made in international financial regulatory reform. New supervisory standards and requirements have been agreed upon regarding capital adequacy, counter-cyclical arrangements, resolution of "toobig-to-fail", etc. That said, certain deeply-rooted factors that have contributed to the latest global financial crisis remain unresolved and may even trigger subsequent crises. These include, among others, the lack of unified legal framework for the mitigation of cross-border risk contagion and for the resolution of cross-border bank failure, uncertainty in the process of accounting standards convergence, new and arising problems brought by the new supervisory rules, continued expansion of the shadow banking sector, and the short-sighted profit-seeking zest innate to financial institutions. Looking internally, Chinese banking sector is ridden with its own problems such as irrational growth model, weakness in comprehensive risk management, homogeneity of development strategies among banks, just to name a few. As the supervisor, we therefore must remain vigilant in guiding the banking institutions through profound market adjustments and building up both their financial and risk management strength. 2011 ushers in the Twelfth Five-Year Plan for National Economic and Social Development. In this new era, the CBRC will continue to stoke the momentum of past reforms and development by building upon the tested traditions and good practices. We will brave difficulties head-on to accelerate the strategic transformation of the banking sector so as to contribute to the broader undertakings of building a prosperous and harmonious China. Chairman’s Statement
About the cbrc Our Mandate, Objectives Missions Mandate Regulating and supervising banking institutions and their business operations in China. Obiectives To protect fair competition in banking industry and enhance the industry's competitiveness, and thereby promoting the safety and soundness of banking industry and maintaining public confidence in the banking sector Supervisory Missions Protecting the interests of depositors and consumers and maintaining market confidence through prudential supervision; increasing public knowledge about modern financial products, services and the related risks through education and information disclosure; and reducing banking- related crimes to maintain financial stability Our Philosophy, Approach Criteria Supervisory philosophy Conducting consolidated and risk-based supervision, ensuring the supervised institutions establish effective risk
Our Mandate, Objectives & Missions Mandate Regulating and supervising banking institutions and their business operations in China. Objectives To protect fair competition in banking industry and enhance the industry’s competitiveness, and thereby promoting the safety and soundness of banking industry and maintaining public confidence in the banking sector. Supervisory Missions Protecting the interests of depositors and consumers and maintaining market confidence through prudential supervision; increasing public knowledge about modern financial products, services and the related risks through education and information disclosure; and reducing banking-related crimes to maintain financial stability. Our Philosophy, Approach & Criteria Supervisory philosophy Conducting consolidated and risk-based supervision, ensuring the supervised institutions establish effective risk About the CBRC Photograph by CBRC staff
management and internal control systems, and enhancing transparency Supervisory approach Conducting prudential supervision to ensure accurate loan classification, sufficient loss provisioning, acceptable profitability and adequate capita Supervisory criteria Enabling financial stability while facilitating financial innovation; enhancing the international competitiveness of the banking sector, setting appropriate supervisory criteria and standards and refraining from unnecessary estriction; encouraging fair and orderly competition; subjecting both the supervisors and supervised institutions to a well-defined system of accountability and allocating supervisory resources in a cost-efficient manner Code of conduct In performing their official duties, the CBrc staff must 1. NOT interfere in regulated banking institutions'credit decisions, 2. NOT interfere in the internal affairs of regulated banking institutions; and 3. NOT accept any advantages from regulated banking institutions
management and internal control systems, and enhancing transparency. Supervisory approach Conducting prudential supervision to ensure accurate loan classification, sufficient loss provisioning, acceptable profitability and adequate capital. Supervisory criteria Enabling financial stability while facilitating financial innovation; enhancing the international competitiveness of the banking sector; setting appropriate supervisory criteria and standards and refraining from unnecessary restrictions; encouraging fair and orderly competition; subjecting both the supervisors and supervised institutions to a well-defined system of accountability; and allocating supervisory resources in a cost-efficient manner. Code of conduct In performing their official duties, the CBRC staff must: 1. NOT interfere in regulated banking institutions’ credit decisions; 2. NOT interfere in the internal affairs of regulated banking institutions; and 3. NOT accept any advantages from regulated banking institutions
Management Chairman LIU Mingkang Responsible for the overall work of the CBRC
12 Annual Report 2010 Chairman LIU Mingkang Responsible for the overall work of the CBRC. Management
Vice Chairman CAl Esheng Vice Chairman ZHOU Mubing Vice Chairman GUO Ligen Responsible for the supervision Responsible for the supervision esponsible for overseeing of policy banks plus China human resources management Development Bank, postal rural commercial banks rural and development, supervisory savings bank, banking asset cooperative banks and rural information technology management companies, non- credit cooperatives, and development, the activities of bank financial institutions and overseeing the CBRC accounting he China Banking Staff Union credit guarantee institutions, and activities(including government the cpc committee of the cbrc overseeing the rule-making of procurement), and the staff Headquarters and Youth League the Cbrc service function Committee Commissioner WANG Huaqing Vice Chairman WANG Zhaoxing Assistant Chairman YAN Qingmin Responsible for the CBrC staff Responsible for the supervision Responsible for the supervision compliance, publicity, anti-illegal of foreign-funded banking of joint-stock commercial banks, fund raising, banking security institutions, and overseeing the city commercial banks, and and safequard activities the activities related to statistical overseeing the administrative supervision and regulation of international and policy research affairs and staff training anking innovation activities functions activities and coordination with the china Banking association Thanks to: Mr JIANG Dingzhi, former Vice Chairman of the CBRC (Left in December 2010)
13 Responsible for the supervision of policy banks plus China Development Bank, postal savings bank, banking asset management companies, nonbank financial institutions and credit guarantee institutions, and overseeing the rule-making of the CBRC. Responsible for the CBRC staff compliance, publicity, anti-illegal fund raising, banking security and safeguard activities, the supervision and regulation of banking innovation activities, and coordination with the China Banking Association. Responsible for the supervision of foreign-funded banking institutions, and overseeing the activities related to statistical, international and policy research functions. Responsible for the supervision of joint-stock commercial banks, city commercial banks, and overseeing the administrative affairs and staff training activities. Responsible for the supervision of large commercial banks, rural commercial banks, rural cooperative banks and rural credit cooperatives, and overseeing the CBRC accounting activities (including government procurement), and the staff service function. Responsible for overseeing human resources management and development, supervisory information technology development, the activities of the China Banking Staff Union, the CPC Committee of the CBRC Headquarters and Youth League Committee. Vice Chairman CAI Esheng WANG Huaqing Vice Chairman WANG Zhaoxing Assistant Chairman YAN Qingmin Vice Chairman ZHOU Mubing Vice Chairman GUO Ligen Disciplinary Commissioner Thanks to: Mr.JIANG Dingzhi, former Vice Chairman of the CBRC (Left in December 2010) About the CBRC