Trust Net Capital Management

Original Language Title: 信托公司净资本管理办法

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now

Read the untranslated law here: http://www.chinalaw.gov.cn/article/fgkd/xfg/gwybmgz/201102/20110200334088.shtml

Trust net capital management

    (August 24, 2010 the China Banking Regulatory Commission [2010] the 5th release come into force on the date of promulgation) Chapter I General provisions

    First to strengthen the supervision of trust companies, promoting the development of trust company is secure, robust, according to the People's Republic of China banking supervision law and the People's Republic of China trust law and other relevant laws and regulations, these measures are formulated.

    Second article this regulation is applicable in the People's Republic of China trust company legally established in the territory. Article net capital in these measures, means the trust company's business scope and structure of assets of the company, on the basis of the net assets of the fixed assets projects, outside projects and other related operational risk-adjusted results of integrated risk control indicators.

    Aim of the net capital management of trust companies is to ensure that sufficient inherent trust assets and maintain the necessary liquidity, the need to meet the business against unforeseen losses.

    Venture capital in these measures refers to trust based on certain criteria and assigned a business used to deal with the potential risks of capital.

    Fourth trust company should be calculated in accordance with the regulations of net capital and risk capital.

    Article fifth trust company should be carried out according to the structure of its assets and business, dynamic net capital management mechanism to ensure that net capital, risk control indicators in line with the required standards.

    Sixth China Banking Regulatory Commission, according to the market development and the principle of prudent regulation, trust calculation standards and minimum net capital requirements, risk control and risk adjusted capital standards. New products and new services not covered in this way, trust companies in the design of the products or the business, shall, in accordance with the provisions prior to the China Banking Regulatory Commission report.

    China Banking Regulatory Commission, according to trust new product features, new business and risk profile, carefully to determine the appropriate ratio and calculation of standard.

    Article seventh measures of China Banking Regulatory Commission in accordance with the trust's net capital management and risk control supervision and inspection of the State.

    Chapter II net capital computation

    Article eighth net capital is calculated as: net capital risk deduction = net assets-assets-contingent liability risk deductions-deduction another risk identified by the China Banking Regulatory Commission.

    Nineth trusts should be made in full on the basis of provision for impairment of all assets, trust in accordance with the China Banking Regulatory Commission net capital net capital standard. Article tenth trust shall, depending on the characteristics and risk profile of the assets, according to the China Banking Regulatory Commission to risk-adjusted assets of the coefficients.

    Trust companies when calculating net capital and similar assets shall be accounted for in the different subjects together, unified by asset property risk adjustment. (A) investment in financial products should be based on product categories and fluidity characteristic coefficients were adjusted in accordance with regulations.

    Trust to own funds to investments of collective trust investment plans or other financial products should be based on the risk of risk-adjusted accordingly.

    (B) equity investments should be based on equity category characteristics and liquidity factor is risk-adjusted in accordance with regulations.

    (C) loans and other debt assets should be based on the maturity of the length and recycled in accordance with the provisions of the factors of risk adjustment.

    Assets in the category at the same time meet the classification criteria for two or more, shall be in the highest adjusted deduction.

    11th for contingencies, trust in computing net capital shall be according to the possibility of losses in accordance with the provisions of the coefficient of risk adjustment.

    Trust company shall set forth the final nature of the contingencies (such as pending litigation, pending arbitration, external security, etc), the amount involved, reason and progress, the possibility of losses and accounting treatment of expected losses in net capital computation be fully disclosed in the notes.

    Chapter III risk capital calculations

    12th due to the activities of the trust business there are certain risks and may result in capital losses, shall be computed in accordance with the scale of a certain proportion of venture capital and establish corresponding relations with net capital, ensure that the corresponding net capital to operational risk capital support.

    13th trust company, trust services and other services, risk capital should be calculated.

    Risk capital is calculated as: = inherent risk capital operations venture capital venture capital + trust + other businesses and venture capital.

    Inherent business risks inherent in capital = operating net assets x risk coefficient.

    Trust trust business assets for operational risk capital = balance x risk coefficient.

    Other = other business venture capital operating balances x risk coefficient.

    Risk factor of every business released separately by the China Banking Regulatory Commission.

    14th trust company shall, in accordance with the relevant operational scale and under which the risk coefficient calculation of the operational risk capital.

    The fourth chapter risk control indicators

    15th trust net capital shall not be less than 200 million Yuan.

    16th trust company shall meet the following risk control measures:

    (A) capital and net capital shall not be less than the risk of 100%;

    (B) net assets net capital shall not be less than 40%.

    17th trust company can according to their own situation, not below the standards prescribed by the China Banking Regulatory Commission on the basis of determining appropriate risk control requirements.

    Fifth chapter of supervision and inspection

    18th Trust Board of Directors bear ultimate responsibility for the company's net capital management, is responsible for determining net capital management objectives, audited risk-bearing capacity, develop and supervise the implementation of net capital management plan.

    19th senior managers responsible for the implementation of net capital management of trust companies, including net capital management the company's rules and regulations, improve risk identification, measurement and reporting procedures, periodic evaluation of net capital adequacy level, and a corresponding net capital management.

    20th trust company should be a net capital computation, risk capital and risk control indicators monitoring reports.

    China Banking Regulatory Commission, according to regulatory needs, require trust to merge data net capital computation, risk capital and risk control indicators monitoring reports. 21st trusts should be within 18 working days from the date of the end of each quarter, submit to the China Banking Regulatory Commission net capital computation, risk capital and risk control indicators monitoring reports.

    Effect in case of net capital, risk control, such as indicators of special major matters, it shall promptly report to the China Banking Regulatory Commission.

    22nd net capital management trust General Manager shall at least once a year to report in writing to the Board of Directors.

    23rd trust company Board Chairman and General Manager to the company's annual net capital computation, risk capital and risk control indicators monitoring report signature verification, and ensure that the report is true, accurate and complete, and does not contain any false record, misleading statements and material omissions.

    24th trust company should be disclosed in the annual report of net capital, risk capital and risk control, and so on.

    25th trust net capital, risk control indicators compared with the last quarter changes exceeding 30% or not up to the required standard, shall within 5 working days from the date of the situation, to the China Banking Regulatory Commission a written report.

    Article 26th trust net capital, risk control indicator does not meet the required standards, the China Banking Regulatory Commission as the case may be, the following measures:

    (A) require trust on the practicable action plan, programme, clear term of rectification;

    (B) require the trusts to take measures to adjust the structure of businesses and assets or capital, raise the level of net capital;

    (C) limit the trust company trust business growth.

    27th for failure to complete the rectification of trust companies, China Banking Regulatory Commission to take the following measures:

    (A) limit the distribution of dividends;

    (B) restrict trust to open new business;

    (C) to suspend part or all of your business.

    28th article on net capital trust company risk control, such as indicators continue to deteriorate, seriously endanger the trust operation, except as provided in article 27th-related measures, the China Banking Regulatory Commission can also take the following steps:

    (A) order to adjust its directors, supervisors and senior management staff;

    (B) ordering the controlling shareholders to transfer their stock right or restricting its shareholders from exercising the shareholders ' rights;

    (C) to order the rectification;

    (D) to take over or supervise the restructuring of trust companies, until revoked.

    The sixth chapter supplementary articles

    Article 29th of this approach by the China Banking Regulatory Commission is responsible for the interpretation. 30th article this way come into force on the date of promulgation.