Leverage ratio of commercial banks management

    (June 1, 2011 Banking Regulatory Commission promulgated as of January 1, 2012, 2011 3rd) Chapter I General provisions

    First degree of leverage for the effective control of commercial banks, maintaining the safe and sound operation of commercial banks, according to the People's Republic of China Banking Regulatory Act and the People's Republic of China on commercial banks, these measures are formulated.

    Second article this regulation is applicable in the People's Republic of China China to set up commercial banks, including banks, foreign-funded banks and Sino-foreign joint venture banks.

    Article leverage in these measures refers to the level held by the commercial banks, in line with the relevant provisions of capital and the ratio of commercial banks adjusted assets balance inside and outside table.

    The fourth commercial bank and tables and not consolidated leverage ratio shall not be less than 4%.

    The fifth China Banking Regulatory Commission (hereinafter referred to as the CBRC) in accordance with this regulation on commercial banks ' leverage and its management of supervision and inspection.

    The sixth Commission will continue monitoring the overall leverage of banks, strengthen the banking system risk analysis and prevention.

    Chapter II calculation of the leverage ratio

    Seventh commercial bank leverage is calculated as:

    The eighth tier and tier-one capital deduction for commercial banks in accordance with the relevant provisions of the Banking Regulatory Commission adopted for calculating the capital adequacy ratio of tier one capital and tier-one capital deduction.

    Nineth adjusted tables inside and outside asset balance is calculated as:

Article tenth of the new balance sheet assets balance is calculated as follows:

(A) exchange rate, interest rate and other derivatives products listed in the annex in accordance with this approach the current exposure method.

(B) other balance sheet assets after deduction preparations against such assets, accounted for in the balance sheet assets balance adjusted.

Commercial banks in the balance sheet assets balance is calculated, does not take into account against collateral, guarantees and credit derivatives, credit risk mitigation factors.

    Commercial banks in the calculation of adjusted balance sheet assets balance, according to the CBRC issued the guidelines on commercial bank credit risk mitigation measure of regulatory capital, repurchase transactions and derivatives transactions by netting method to adjust.

11th adjusted balance of off-balance sheet items in accordance with the following formula:

(A) unconditional withdrawal in off-balance sheet items in accordance with 10% of the credit conversion factor.

(B) the other off-balance sheet items in accordance with 100% of the credit conversion factor.

    Revocable commitments unconditionally refers to banks set out in writing in the agreement, without prior notice, right for any unconditional revocation and revocation does not cause disputes, litigation costs or to the Bank's commitment.

    12th when calculating the consolidated leverage ratio of commercial banks, and table and calculation, according to the CBRC rules on the calculation of consolidated capital adequacy ratio to determine.

    Chapter III supervision of leverage management

    13th Commercial Bank Board of Directors bear the ultimate responsibility of leverage management, commercial bank's senior management is responsible for the implementation of leveraged management.

    14th commercial banks should set target leverage ratio of not less than the minimum regulatory requirements, effective control of the degree of leverage.

15th commercial banks should regularly submit according to the CBRC, and tables and not leverage reports and table.

    Consolidated leverage ratio report submitted to once every six months, not consolidated leverage ratio report submissions on a quarterly.

16th commercial bank leverage disclosure shall include at least the leverage levels, tier one capital, tier one capital deductions, adjusted balance sheet assets balance, off-balance sheet items, adjusted balance of internal and external asset balances and adjusted table and so on. Bank shall, within four months after the end of each fiscal year disclosure of leverage information.

Due to special reasons not disclosed on time should be at least 15 working days in advance applied to the CBRC delay.

    Commercial banks shall be published in the main place of these measures requires disclosure of information content, and ensure that shareholders and stakeholders can access to relevant information in a timely manner.

17th for the leverage ratio below the minimum regulatory requirement of commercial banks, the CBRC may take the following corrective measures:

(A) the requested deadline added tier one capital of commercial banks;

(B) require commercial banks to control asset growth inside and outside tables;

(C) requiring commercial banks to reduce assets inside and outside tables.

It fails to mend, or seriously jeopardize the commercial operation, damage the lawful rights and interests of depositors and other customers, the CBRC under the People's Republic of China banking regulatory provisions of the Act, the differences, take the following measures:

(A) order the suspension of operations, to stop allowing the introduction of new business;

(B) restrict the distribution of dividends and other income;

(C) to stop approval of the additional branch offices;

(D) ordering the controlling shareholders to transfer their stock right or restricting its shareholders rights;

(E) order to change directors, senior executives or restriction of their rights;

(F) other measures provided by law.

    In addition to the above measures, the regulator can also be given administrative punishment of commercial banks according to law.

    The fourth chapter by-laws

    18th policy banks, financial asset management companies, rural cooperative banks, rural credit cooperatives, finance companies, financial leasing companies, auto finance companies and consumer finance companies in accordance with the measures implemented. 19th the CBRC systemically important banks should be identified before the end of 2013 to meet minimum leverage requirements, non-systemically important banks should be before the end of 2016 to meet minimum leverage requirements.

    During the transition period, does not meet the minimum leverage ratio requirements of banks should develop a standard plan, and report to the CBRC.

    The 20th article of the approach by the banking regulator is responsible for the interpretation.

    21st article this way come into force on January 1, 2012.

    Annex: exchange rate, interest rate and other derivatives the current exposure value calculation method of attachment: exchange rate, interest rate and other derivatives of current risk exposure value calculation method Exchange rate, interest rate and other derivatives, including forwards, futures, swaps (swap) and options.

    Exposure to derivatives at current exposure method, included in the balance sheet assets balance, calculated as follows:

    Current exposure value = measured at fair value the important cost + fixed notional principal x factor

Different derivatives of the remaining term of fixed coefficients in the following table:
┌─────────┬────┬─────┬────┬────┬────┐
│ │ │ │ │ Exchange of interest rates and gold stock gold │ │
│剩余期限          │        │          │        │的贵金属│        │
├─────────┼────┼─────┼────┼────┼────┤
Not more than 1 │ 0% │ │ 1% │ │ 7% │ 10% │
│                  │        │          │        │        │        │
├─────────┼────┼─────┼────┼────┼────┤
│ 1 year, not exceeding 5 years │ 0.5% │ 5% │ │ 7% │ 12% │
│                  │        │          │        │        │        │
├─────────┼────┼─────┼────┼────┼────┤
│ 5 year │ 1.5% │ 7.5% │ │ 8% │ 15% │

└─────────┴────┴─────┴────┴────┴────┘ Note: the "other" refers to these interest rates, exchange rates, gold, stocks and precious metals derivatives.