|
Welcome Guest
|
|
You are using Guest Account
|
|
||||||||||||||||||||||||||||||||||
|
TABLE OF CONTENTS CHAPTER I GENERAL PROVISIONS CHAPTER II THE DETERMINATION OF THE LEADING REPORTING BANKS AND THEIR FUNCTIONS CHAPTER III SUPERVISION OFF-SPOT CHAPTER IV ON-THE-SPOT EXAMINATION CHAPTER V EXTERNAL AUDIT AND THREE PARTY TALKS CHAPTER VI SUPPLEMENTARY PROVISIONS CHAPTER I GENERAL PROVISIONS Article 1. The present Measures are hereby formulated for the purpose of implementing the Banking Supervision Law of the People's Republic of China and the Regulations of the People's Republic of China on the Administration of Foreign-funded Financial Institutions and other laws and regulations, for the purpose of regulating the work for consolidated financial statement in conducting supervision, and implementing risk supervision effectively. Article 2. China Banking Regulatory Commission (hereinafter referred to CBRC) shall be responsible for guiding the work of consolidated financial statement in conducting supervision over foreign-funded banks. Article 3. CBRC shall conduct supervision over the solely foreign-owned banks or joint venture banks that have established branch institutions or accessorial institutions, and foreign banks that have established two or more business branches in China through consolidated financial statement. Through the consolidated financial statement, CBRC can conduct overall supervision over the status of worldwide business and risk of the foreign-funded corporation institutions, which are registered in China; supervise over the overall status of business and risk of the foreign banks in China, and pay attention to the business risk and market behaviors thereof worldwide. Article 4. The leading reporting bank mentioned hereinafter refers to the parent bank of the solely foreign-owned or joint venture banks, and institutions for reporting consolidated financial statements and comprehensive information, which are designated by the parent bank of a foreign bank or the regional management departments it authorizes, and put the statements on records at the agencies of CBRC. The "consolidated financial statement supervision bureau" refers to the agency of CBRC at the place where the leading reporting bank of a foreign-funded bank is located. And the territorial supervision bureau refers to the agency of CBRC at the place where other business branches of a foreign-funded bank are located. Article 5. The "year" mentioned in the present Measures refers to the year of the Gregorian calendar from January 1 to December 31. The fiscal year refers to the legal fiscal year of each country. CHAPTER II THE DETERMINATION OF THE LEADING REPORTING BANKS AND THEIR FUNCTIONS Article 6. The foreign-funded banks that accord with the conditions of consolidated financial statement in conducting supervision prescribed in Article 3 of the present Measures shall determine a leading reporting bank. Article 7. Those foreign-funded corporation institutions that meet the conditions of consolidated financial statement in conducting supervision due to establishment of additional institutions or merger, shall put it on records at the agency of CBRC at the place where the parent bank is located within one month after the conditions are met. Where a foreign bank meets the conditions of consolidated financial statement in conducting supervision due to establishment of additional institutions, its parent bank or authorized regional management department shall assign a leading reporting bank within one month after they have been approved officially by CBRC. And the leading reporting bank shall then put it on records at the agency of CBRC at the place where it is located, and send a copy to the relevant territorial supervision bureau. Article 8. Where a foreign bank needs to change the leading reporting bank, its parent bank or authorized regional management department shall change the leading reporting bank one month before the end of the fiscal year. The former leading reporting bank and newly appointed leading reporting bank shall put this on records at their respective agencies of CBRC at their localities, and send a copy to the relevant territorial supervision bureau. The newly appointed leading reporting bank shall undertake the functions of the leading reporting bank from the next fiscal year. Article 9. The leading reporting bank shall employ full-time or part-time compliance managers in the China Region in light of circumstances. The examination on qualifications for holding the post of a compliance manager shall apply the system of recording the senior management personnel of the foreign-funded financial institutions prescribed in the Detailed Rules for the Implementation of the Regulations of the People's Republic of China on the Administration of the Foreign-funded Financial Institutions. Article 10. The leading reporting bank is the institution whose functions are to collect the consolidated financial statement and comprehensive information of a foreign-funded bank, and performs the following functions: (1) The leading reporting bank shall submit or put on record the supervision statements, statement and report of major matters concerned, and other supervision materials to the consolidated financial statement supervision bureaus as the supervision requires, and shall be responsible for the truthfulness, accuracy and timeliness of the contents submitted and put on record. The leading reporting bank shall also be responsible for submitting the business applications concerning several branch banks within China to the consolidated financial statement supervision bureaus uniformly, and send a copy thereof to the territorial supervision bureaus; (2) The leading reporting bank may attend the work meeting or proseminar convened by CBRC on behalf of the foreign-funded bank it is subordinated to, and propose opinions and suggestions in the name of the foreign-funded bank. The leading reporting bank, which attends the meeting shall report in time the information of the meeting to the parent bank or the regional management departments and circulate a notice to other business branches within China in time. The foreign-funded banks shall have their opinions and suggestions on the relevant Chinese supervision laws and regulations put forward to the consolidated financial statement supervision bureaus uniformly after having them collected by the leading reporting bank, who shall then, after obtaining the feedback opinions, convey them to other business branches within China in time; (3) The leading reporting bank shall report the relevant information in respect of economy and finance of the parent bank and home country or region as supervision requires; (4) The leading reporting bank shall be responsible for the work of information disclosure of the domestic business branches of a foreign-funded bank; and (5) Implementing other requirements of the supervision bureau. The leading reporting bank shall attach the electronic documents at the time of submitting written documents. Article 11. The legal responsible person of the leading reporting bank shall be responsible for their functions in the work of consolidated financial statement undertaken by the leading reporting bank. CHAPTER III SUPERVISION OFF-SPOT Article 12. CBRC shall be responsible for guiding and supervising over the work of its agencies for consolidated financial statement in conducting supervision over foreign-funded banks not on the spot. Article 13. The consolidated financial statement supervision bureaus shall supervise over the leading reporting bank for its quarterly report of consolidated financial statement of the domestic institutions, of which, the financial statements of the overseas branches and subordinated institutions of a solely foreign-owned bank or joint venture bank and group consolidated financial statements shall be reported with written documents by year. Article 14. The consolidated financial statement supervision bureaus shall supervise the leading reporting banks over its putting-on-record of the following matters in time: (1) The annual report having been publicized and the information disclosure of the domestic business branches for the fiscal year; (2) The grading by external grading institutions; (3) The major news released by the parent bank; (4) The documents specifying the events under investigation; (5) Appraisal of the supervision bureau of the home country or region and major supervision measures; (6)The statement on major adjustment of policies in respect of finance and economy of the home country or region; and (7) Other relevant documents prescribed in the Detailed Rules for the Implementation of the Regulations of the People's Republic of China on the Administration of Foreign-funded Financial Institutions Article 15. The consolidated financial statement supervision bureaus shall require the leading reporting bank to submit one copy of the Summary Report of the Business Conditions of Foreign Funded Banks half a year, which shall include: basic information (the quantity of business institutions, number of employees, alteration of the business scope, etc.), the specification on centralization of loan granting, analysis on reserves for losses of loans, the transfer of large amount of assets, analysis on flowing in or out of capitals, conditions of connected transaction, listing of overseas loans or investment, and business trends of the business branches, and other contents. There are also statements on alteration of the structure, business strategies, level of capital adequacy, financial status and market credit standing of the parent banks. Article 16. The consolidated financial statement supervision bureaus shall be responsible for monitoring by quarter the indicators of compliance supervision for the examination through consolidated financial statement, and make analysis on the trend of risk supervision indicators and overall business behaviors. Article 17. The consolidated financial statement supervision bureaus shall collect the business management systems of foreign-funded banks, and communicate with the leading reporting bank or senior management personnel of regional management departments on such contents of risk management of the foreign-funded banks as the pattern of management, management information system, risk and authorization management, compliance management, credit management and financial management, etc.. Article 18. The consolidated financial statement supervision bureaus shall, submit the following matters concerned to CBRC according to the relevant provisions: (1) The major events concerned and various management systems that have been put on records by foreign-funded banks; (2) The conditions concerning the errors of the report of data of consolidated financial statement; (3) The conditions of regulation violation and abnormal alteration of the indexes for examination through consolidated financial statement; and (4) Opinions on supervision through consolidated financial statement. Article 19. The consolidated financial statement supervision bureaus shall, on the basis of analyzing comprehensively the various supervision information and on-the-spot examination conditions, complete the half year and annual report on consolidated financial statement in conducting supervision. Article 20. CBRC shall be responsible for communicating with the supervision authorities of the home country or region of the foreign-funded corporation institutions and the supervision authorities of the home country or region of a foreign bank on issues of supervision they commonly concern, and carry out cooperation on supervision information exchange. Article 21. CBRC shall be responsible for promoting the exchange and share of the comprehensive supervision information within their organs, and provide or disclose the business conditions of the foreign-funded banks within China. Article 22. CBRC shall be responsible for unifying the procedures and requirements for the work of consolidated financial statement in conducting supervision. CHAPTER IV ON-THE-SPOT EXAMINATION Article 23. CBRC shall be responsible for organizing, guiding and coordinating the consolidated financial statement in conducting on-the-spot examination on foreign-funded banks. Article 24. There shall be two ways for organizing the on-the-spot examination through consolidated financial statement: (1) Entrusting the consolidated financial statement supervision bureaus and the territorial supervision bureaus to assign examination groups, and carrying out on-the-spot examination through consolidated financial statement respectively according to examination plans; and (2) CBRC shall organize the supervisors of foreign-funded banks to form an examination group to carry out on-the-spot examination through consolidated financial statement on the consolidated financial statement institutions. Article 25. CBRC shall, according to the conditions of risk supervision and periods of on-the-spot examination, determine plans of consolidated financial statement in conducting on-the-spot examination on foreign-funded banks, and put forward guiding requirements for the form, contents and emphasis of the examination. Article 26. CBRC shall adjust the contents of consolidated financial statement for on-the-spot examination in light of realities, and coordinate the time and progress of the examination items. In case the examination group finds any major problem in the examination, it shall report to CBRC in time. Article 27. CBRC shall uniformly formulate plans of consolidated financial statement for on-the-spot examination organized by it. The examination group shall carry out on-the-spot examination in light of the procedures and requirements prescribed in the examination handbook and plan, and complete the examination task within the prescribed time limit. After ending the on-the-spot task, the examination group shall finish the "Examination Facts and Appraisal" and the relevant grading of CAMELs/ROCA, and make a final confirmation on the facts concerned with the senior management personnel of the examined institution. After the end of the examination, the examination team shall transfer the "Examination Facts and Appraisal" and the result of the grading of CAMELs/ROCA and the examination files to the agencies of CBRC at their locality. After completing all the examination plans, the examination group shall collect the report of consolidated financial statement for on-the-spot examination, and report it to CBRC together with the "Examination Facts and Appraisal" and condition of grading of the single institution. Article 28. The supervision opinions on the consolidated financial statement for on-the-spot examination shall be coordinated uniformly by the CSRC, who shall then propose suggestions according to the "Examination Facts and Appraisal" and reflect to the corresponding agencies of CBRC. Article 29. The agencies of CBRC shall be responsible for following up and handling the consolidated financial statement for on-the-spot examination. The agencies of CBRC shall, according to the "Examination Facts and Appraisal" and the suggestions of CBRC, issue opinions on the consolidated financial statement for on-the-spot examination to the institutions at their locality, and require them to rectify and correct, and impose punishment on acts in violation of regulations according to relevant provisions. The agencies of CBRC shall, within 3 months after the on-the-spot examination through consolidated financial statement, follow up the implementation of the measures for rectification, or make follow-up on-the-spot examination on the consolidated financial statement institutions at their locality, and report the conditions of rectification and correction to CBRC in time. Article 30. CBRC shall be responsible for accepting the application of the supervision bureau of the home country or region of a foreign bank for the transnational on-the-spot examination, and entrust the local agencies of CBRC and the examination team to exchange opinions on supervision conditions of the examined institution. After the end of the contact, the agencies of CBRC shall report the information they have acquired to CBRC in time, and follow up the issues referred to by the examination team. CHAPTER V EXTERNAL AUDIT AND THREE PARTY TALKS Article 31. Where a foreign-funded bank conforms to the conditions for consolidated financial statement supervision, it shall engage the same accountant office in principle to be responsible for auditing and consolidated financial statement auditing on domestic business branches and affiliated institutions. Article 32. The leading reporting bank shall, one month before the end of the fiscal year, put on records the external auditors and auditing group they engage in the current fiscal year at the consolidated financial statement supervision bureau, and send a copy to the corresponding territorial supervision bureau at the same time. In case of changing accountant office, the leading reporting bank shall also submit statement in writing. In case the agencies of CBRC have negative opinions on auditing quality made by the external auditors, who are engaged by the foreign-funded banks, they may make a suggestion to the foreign-funded banks and ask it to change the auditing team or accountant office within 14 working days after receiving the letter of recording. Article 33. The external auditors shall communicate with the consolidated financial statement supervision bureau on the auditing requirements before conducting the consolidated financial statement auditing. Article 34. The leading reporting banks shall, within 5 months after the end of the fiscal year, report the "Auditing Report for Consolidated Financial Statement" and the "Letter of Suggestion on Management through Consolidated Financial Statement" to the consolidated financial statement supervision bureaus. Article 35. The territorial supervision bureaus shall, within 30 days after receiving the External Auditing Report and the Letter of Suggestion on Management, reflect the opinions of appraisal on quality of external auditing to the consolidated financial statement supervision bureau. The consolidated financial statement supervision bureaus shall be responsible for making comprehensive appraisal on quality of external auditing through combination of the feedback opinions of each territorial supervision bureau, and issues reflected in the Auditing Report for Consolidated Financial Statement and the Letter of Suggestion on Management through Consolidated Financial Statement. Article 36. The consolidated financial statement supervision bureaus shall, on the basis of comprehensive supervision of foreign-funded banks, be responsible for proposing plans for three party talks. The three party talks on consolidated financial statement shall be organized by CBRC, and the participating parties shall include CBRC, the consolidated financial statement supervision bureau, the territorial supervision bureau, external auditors and the leading reporting banks. After the end of the talks, the consolidated financial statement supervision bureaus shall complete the summary of three parties meeting for the consolidated financial statement, and supervise over the leading reporting bank for its timely feedback of the implementation of the opinions for rectification and correction. CHAPTER VI SUPPLEMENTARY PROVISIONS Article 37. The present Measures shall be interpreted by CBRC. Article 38. The relevant opinions on consolidated financial statement in conducting supervision shall be considered the basis for examination of applications such as the establishment of additional institutions of a foreign-funded bank and business access, etc.. Article 39. The present Measures shall come into force as of April 1, 2004. Where other relevant provisions concerning the consolidated financial statement in conducting supervision over foreign-funded banks conflict with the present Measures, they will be invalidated simultaneously. |
||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||
|
Copyright 2002 NovexCn.com
|