China issues measures for regulatory rating of foreign banks' branches

The China Banking and Insurance Regulatory Commission (CBIRC) on Tuesday released trial measures for the comprehensive regulatory rating of foreign bank branches.

In a notice published on the CBIRC website, an official said the new measures would further institutionalize and standardize supervision of foreign-funded banks.

A foreign branch's rating will be determined by evaluating its core factors, such as risk management, operation control, compliance, and asset quality, as well as its head office's operational risks, financial condition, and managerial ability.

The ratings will be an important basis for allocating regulatory resources, granting market access, implementing classified oversight of foreign banks' branches, and urging them to enhance risk management in China.

(CGTN)