China Banking Regulatory Commission On The Revision Of The Group Client Credit Business Of Commercial Banks Guidelines On Risk Management Decisions

Original Language Title: 中国银行业监督管理委员会关于修改《商业银行集团客户授信业务风险管理指引》的决定

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Read the untranslated law here: http://www.chinalaw.gov.cn/article/fgkd/xfg/gwybmgz/201011/20101100328935.shtml

China Banking Regulatory Commission on the revision of the Group client credit business of commercial banks guidelines on risk management decisions

    (June 4, 2010 China's Banking Regulatory Commission announced 2010 of 4th come into force on the date of promulgation), China Banking Regulatory Commission decides on the Group client credit business of commercial bank risk management guidelines as follows: One, the second is revised as follows: "referred to in these guidelines refers to commercial banks in the People's Republic of China territory established by law in Chinese, Sino-foreign joint ventures and wholly foreign-owned commercial banks, and so on.

    ” Second, fourth, revised as follows: "the credit mean that commercial banks provide financial support directly to the customer or on customer-related economic activities may occur in the compensation, payment guarantees. Including, but not limited to: loans, trade finance, bills acceptance and discount, overdraft, factoring, guarantees, loan commitments, credit and other tables inside and outside the business.

    ” Third, fourth, one paragraph is added as the second paragraph: "customers members of the Group held by the commercial enterprises issued corporate bonds, corporate bonds, short-term, medium-term notes and other debt assets and derivatives credit risk exposures arising from acts such as risk management be included in the Group client credit business.

    ” Four, seventh paragraph is amended as: "the Group client credit business of commercial banks to develop risk management system shall be submitted to the banking regulatory filings.

    ”

    Five, 12th is amended as: "a commercial bank for a single group of customer credit balances (paragraph including the fourth columns of various types of credit risk exposure) must not exceed 15% of the net assets of the commercial banks, or will be deemed to exceed its risk bearing capacity.

    "When a group customer credit needs exceed a capacity of risk at the Bank, commercial banks should take the Organization of syndicated lending, syndicated loans and loan transfers and other measures to spread the risks.

    "When credit balances are calculated and deducted from customer margin deposits and mortgage bank certificates of deposit and Treasury. "According to the requirements of prudential supervision, banking regulators can reduce individual commercial banks a single group customer credit balances and net capital ratio.

    ” Six, and 13th article first paragraph modified for: "commercial banks in on group customer award letter Shi, should requirements group customer provides real, and full of information information, including but not limited to group customer the members of name, and mutual Zhijian of associated relationship, and organization institutions code, and statutory representative people and the documents, and actual control people and the documents, and registered to, and registered capital, and main business, and equity structure, and senior management personnel situation, and financial status, and major assets project, and guarantees situation and major litigation situation and in other financial institutions award letter situation,.

    ”

    Seven article 18th, amended to read: "when commercial banks loans to customers should be specified in the loan contract, loan, one of the following circumstances, the lender has the right to unilaterally decide to stop paying the borrower of unused loans, ahead of the resumption of some or all of the loan principal and interest, and to take other measures: Eight, 18th one paragraph is added: "(VII) another significant violations identified by commercial banks.

    ” Nine, 30th is amended as: "policy banks and rural cooperative banks, urban credit cooperatives, rural credit cooperatives, trust companies, financial leasing companies, auto finance companies, branches of foreign banks on the Group client credit business reference guide on risk management implementation.

    ”

    This decision shall come into force as of the date of.

    The Guide to group client credit business of commercial bank risk management under the terms of this decision be amended accordingly and the order adjusted accordingly, republished.

    Report: Group client credit business of commercial bank risk management guidelines (revised 2010)

    (2003 5th order of China Banking Regulatory Commission promulgated and implemented according to the June 2010 1 98th meeting of the chairpersons of the China Banking Regulatory Commission on amendments to the Group client credit business of commercial banks risk management decision amending the guidelines)

    Chapter I General provisions

    First effective risk prevention, promote the strengthening Group client credit business of commercial bank risk management, under the People's Republic of China Banking Regulatory Act, the People's Republic of China commercial bank law, these guidelines are formulated.

    Article referred to in these guidelines refers to commercial banks in the People's Republic of China territory established by law in Chinese, Sino-foreign joint ventures and wholly foreign-owned commercial banks, and so on.

    Article group clients are referred to in these guidelines refers to commercial credit of enterprises and legal persons has the following characteristics:

    (A) in equity or management decisions on direct or indirect control over other enterprise controlled by legal entities or other enterprises and legal persons;

    (B) joint undertakings by third parties under the control of a legal person;

    (C) principal individual investors, key management personnel, or the close relatives (including within the immediate family members of three generations and the relationship between collateral relatives within the second generation), controlled directly or indirectly controls;

    (D) there are other relationships may not principles to transfer assets at fair prices and profits, commercial bank believes should be treated as a group customer credit management.

    Enterprises and legal persons referred to in the preceding paragraph, including other financial institutions other than banks.

    Commercial banks should be based on four characteristics mentioned above combined with the actual needs of the Bank's credit risk management determining the scope of single customers. Article fourth credit refers to the commercial banks provide financial support directly to the customer or on customer-related economic activities may occur in the compensation, payment guarantees.

    Including, but not limited to: loans, trade finance, bills acceptance and discount, overdraft, factoring, guarantees, loan commitments, credit and other tables inside and outside the business.

    Group members held by the commercial banks to issue corporate bonds, corporate bonds, short-term, medium-term notes and other debt assets and derivatives credit risk exposures arising from acts such as risk management be included in the Group client credit business.

    Fifth article this guidelines by said group customer award letter business risk is refers to due to commercial banks on group customer bulls award letter, and excessive award letter and not appropriate distribution award letter lines, or group customer mismanagement and group customer through associated trading, and assets restructuring, means in internal associated party Zhijian not by fair price principles transfer assets or profit, situation, led to commercial banks cannot on time recovered due to award letter produced of loan principal and the interest, or to commercial banks brings other loss of possibilities.

    Sixth commercial bank group customer credit should be guided by the following principles: (A) the principle of unity.

    Imposed on group customer credit management of commercial banks, focusing on group customer credit risk control. (B) the principle of moderation.

    Should be according to the object of the credit risk of commercial banks and their risk taking ability, determines the Group's overall credit line to prevent an excessive concentration of risk. (C) the precautionary principle.

    Commercial bank risk early warning system should be established, and prevent and resolve Group customer credit risk in a timely manner.

    Chapter II credit risk management

    Seventh article commercial banks should according to this guidelines of provides, combined itself of business management level and credit management information system of status, developed group customer award letter business risk management system, its content should including group customer award letter business risk management of organization construction, and risk management and prevention of specific measures, and determine single group customer of range by according to of guidelines, and on single? a group customer of award letter limit standard, and internal report program and internal responsibility distribution,.

    Group client credit business of commercial banks to develop risk management system shall be submitted to the banking regulatory agency records. Article eighth commercial banks should be established with the Group client credit business management system adapting to the characteristics of risk management at all levels should be specified.

    The organization responsible for group-wide customer credit activity management, is responsible for organizing the group customer credit information collection, information services, and information management. Nineth on group customer credit of commercial banks should be handled by corporate headquarters (or core) branch or head office of the location of the specified bodies to competent institutions.

    Authorities should charge customers unified credit limit set and adjusted or the corresponding programmes, procedures implemented after being approved by the regulation, should also be responsible for customers management information tracking collection and risk communications, and so on. Tenth article on group customer credit of commercial bank Customer Manager system should be made.

    Customer credit manager of the Bank Group, to designate a person responsible for the day-to-day management of group customer credit. 11th commercial bank group customer credit object falling within the approved maximum credit limit, taking full account of the various credit credit conditions, operating conditions and financial situation at the same time, group should take fully into account the customer's overall credit status, operation and financial situation.

    Maximum credit line should be according to the customer's operations and changes in financial position to make adjustments in a timely manner. 12th a commercial bank to a single group of customer credit balances (paragraph including the fourth columns of various types of credit risk exposure) must not exceed 15% of the net assets of the commercial banks.

    Otherwise will be seen as more than the risk-bearing capacity.

    When a group customer credit needs exceed a capacity of risk at the Bank, commercial banks should take the Organization of syndicated lending, syndicated loans and loan transfers and other measures to spread the risks.

    When calculating the credit balance of deductible customer margin deposits and mortgage bank certificates of deposit and Treasury.

    According to the requirements of prudential supervision, banking regulators can reduce individual commercial banks a single group customer credit balances and net capital ratio.

    13th article commercial banks in on group customer award letter Shi, should requirements group customer provides real, and full of information information, including but not limited to group customer the members of name, and mutual Zhijian of associated relationship, and organization institutions code, and statutory representative people and the documents, and actual control people and the documents, and registered to, and registered capital, and main business, and equity structure, and senior management personnel situation, and financial status, and major assets project, and guarantees situation and major litigation situation and in other financial institutions award letter situation,.
If necessary, the banks may require customers to engage an independent third party information on the effectiveness of notarization authenticity certificate.

    14th when commercial bank group customer credit, credit due diligence should be well, against the credit provides information on key content verification or have questions about the contents of the field, and reflected in your credit report.

    Investigators should be responsible for the authenticity of the report.

    15th to multinational clients of commercial banks in domestic institutions when the credit, in addition to the agencies conducting investigations on its territory, also concerns the background of offshore companies, credit rating, management and finance, guarantees and significant litigation and other cases, and recorded in the report of the relevant circumstances. 16th when the commercial bank group customer credit, should be taken to prevent customer internal security risks with each other between related parties of the group.

    For group customers holding directly or indirectly holding mutual guarantees between related parties, commercial banks should be a rigorous examination of its credit standing and strictly controlled.

    Article 17th when group customer credit should be specified in the credit agreement, require group customers to report credit net worth more than 10% related party transactions, including, but not limited to:

    (A) the relationship of the parties to the transaction;

    (B) the nature of transactions and transactions;

    (C) the transaction amounts or appropriate proportions;

    (Iv) pricing policies (including transactions where no amount or only nominal amounts).

    18th when commercial banks loans to customers shall be specified in the loan contract, the loan object any of the following circumstances, the lender has the right to unilaterally decide to stop paying the borrower of unused loans, and ahead of the resumption of some or all of the loan principal and interest, and to take other measures:

    (A) provides false information or concealing important facts of financial;

    (B) the loan without the lender's permission to change the original purpose, diversion of loans or engage in illegal, illegal trading of bank loans;

    (C) the use of bogus contracts with related parties, with no real trade notes receivable, accounts receivable, claims the Bank discount or pledge of acquiring bank funds or credit;

    (D) refused to loan its credit situation and on the operation of financial supervision and inspection of activities;

    (E) a significant merger, acquisition and reorganization of lenders that may affect loan security;

    (Vi) through related party transactions who wish to escape from banks ' claims;

    (G) another significant violations identified by commercial banks.

    19th after the commercial banks should strengthen the Group client credit risk management, regular or ad hoc basis to carry out joint investigations for clients across the group, grasp of their overall business and financial changes, and log on to major changes in bank credit management information systems. 20th group customer credit risk exposure, recovery measures at the credit of commercial banks at the same time, should pay special attention to customer related transactions between the related parties of the group.

    There are a number of commercial bank loans, among commercial banks to take joint action to take, if necessary, the Organization of joint recovery team, unified collection of loans. Article 21st commercial bank each year a comprehensive group-wide customer credit risk assessment should also check the branch on the implementation of relevant, of violations should be severely punished.

    Commercial banks should be submitted to the banking regulatory agency at least once a year the risk assessment report.

    22nd banking regulatory authority according to the requirements of these guidelines reinforce the supervision of the Group client credit business, regular or not regular checks are carried out, focus on group customer credit management system of commercial bank building, and the construction of credit system of implementation.

    Chapter III information management and early-warning 23rd commercial bank should establish a sound credit management information systems for the management of the Group client credit business to provide valid information support.

    Commercial bank credit management information systems should be able to identify the related parties of the group clients, enables agencies share information about customers of commercial banks to support commercial bank loan risk early warning system-wide group of customers.

    Article 24th before the Group client credit, queries, credit card information and other legal means should be adopted to fully grasp the debt information from customers and related parties of the group information, external and internal security of information and action on important matters, such as against group customers excessive credit. 25th article commercial banks to group customer award letter Hou, should timely will award letter total, and term and was award letter people of statutory representative people, and associated party, information login to banking supervision management institutions or other related sector of credit registration system, while should do group customer award letter Hou information collection and finishing work, group customer loan of changes, and business financial status of exception changes, and key management personnel of changes and group customer of violations business, and was prosecution, and debt interest, and escape waste debt, and

    Important matters such as providing false information must log on to the management information system of bank credit in a timely manner.

    26th commercial banks should, according to the client's industry and business of the group, total credit to corporate customers, balance sheet indicators, profitability index, liquidity index, the loan principal and interest repayments and credit status of key managers, setting credit risk warning line.

    27th the CBRC to establish large group client credit business statistics and risk analysis system, and depending on the individual clients inform the risk situation of the group.

    28th should strengthen cooperation between banks, consult with each other when the Group client credit, should be made available on a commercial basis in accordance with necessary information and referral assistance.

    29th commercial banks should, and reputable accounting firms, law firms and other intermediary institutions to establish stable business relationships and, if necessary, should be required to credit the relevant opinions issued by agencies recognized by the commercial banks.

    The fourth chapter by-laws

    Article 30th policy banks and rural cooperative banks, urban credit cooperatives, rural credit cooperatives, trust companies, financial leasing companies, auto finance companies, branches of foreign banks on the Group client credit business reference guide on risk management implementation. 31st article this guideline by the China Banking Regulatory Commission is responsible for the interpretation.