People’s Republic of China: Financial Sector Assessment Program- Detailed Assessment of Observance of Basel Core Principles for Effective Banking Supervision
IMF Staff Country Reports, December 26, 2017
Source details
- Canonical URL
- People’s Republic of China: Financial Sector Assessment Program- Detailed Assessment of Observance of Basel Core Principles for Effective Banking Supervision
Other formats
Bibliographic details
- Published: December 26, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484335222.002
Executive summary
- Presents an assessment of the level of observance of the Basel Core Principles for Effective Banking Supervision (BCPs) in China.
- Notes that the China Banking Regulatory Commission (CBRC) "has maintained its momentum in regulation and supervision in the face of exceptional growth in scale and increasing complexity of the banking system."
- Concludes the CBRC "has also achieved a high degree of compliance with the BCPs."
- Identifies key shortcomings: several dimensions of credit risk—specifically treatment of problem assets, concentration risk, and related party exposures—have aspects that "lag international best practices and standards."
- Warns that failure to resolve these issues "may hamper the CBRC in its task of assessing the nature and scale of credit risk in the system and within individual institutions."
Findings on credit risk and supervisory gaps
- Treatment of problem assets: identified as a dimension where practices lag international best practices.
- Concentration risk: identified as a supervisory area with shortcomings relative to international standards.
- Related party exposures: identified as an area with aspects that do not meet international best practices.
- Systemic impact: shortcomings in these areas could impair the CBRC’s ability to assess credit risk both system-wide and at individual institutions.
CBRC performance and compliance
- CBRC performance characterized by:
- Continued regulatory and supervisory momentum amid rapid growth and complexity in the banking system.
- A high degree of compliance with the Basel Core Principles for Effective Banking Supervision.
Publication and metadata
- Pages: 270
- Volume: 2017
- Issue: 403
- Series: Country Report No. 2017/403
- DOI: https://doi.org/10.5089/9781484335222.002
- Stock No: 1CHNEA2017006
- ISBN: 9781484335222
- ISSN: 1934-7685
- Publication date shown: December 26, 2017
International Monetary Fund. Monetary and Capital Markets Department "People’s Republic of China: Financial Sector Assessment Program- Detailed Assessment of Observance of Basel Core Principles for Effective Banking Supervision", IMF Staff Country Reports 2017, 403 (2017).
Content in this bundle
- Country Report