Notice of the General Office of the Shanghai Office of the China Banking Regulatory Commission on Conducting the Self-Examination of Risks of Emerging Off-Balance-Sheet Businesses

· Document Number：No. 123 [2016] of the General Office of the Shanghai Office of the China Banking Regulatory Commission

· Area of Law： Banking & Finance

· Level of Authority： Local Regulatory Documents

· Date issued：05-27-2016

· Effective Date：05-27-2016

· Status： Effective

· Issuing Authority： China Banking Regulatory Commission, Shanghai Bureau

Notice of the General Office of the Shanghai Office of the China Banking Regulatory Commission on Conducting the Self-Examination of Risks of Emerging Off-Balance-Sheet Businesses
(No. 123 [2016] of the General Office of the Shanghai Office of the China Banking Regulatory Commission)
Bank of Shanghai, Shanghai Rural Commercial Bank, and Shanghai Hua Rui Bank; and all foreign-funded corporate banks, branches of Chinese-funded banks (large-scale banks, Postal Savings Bank of China, joint-stock banks, and urban commercial banks), village banks, branches of banks from foreign countries and Hong Kong, Macao, and Taiwan regions, and braches of non-resident foreign-funded corporate banks in Shanghai:
According to the specific requirements of the Opinions of the General Office of the China Banking Regulatory Commission on the Work of Preventing and Resolving Financial Risks and Strictly Observing Risk Bottom Lines (No. 27 [2016], General Office of the China Banking Regulatory Commission), banking financial institutions shall incorporate off-balance-sheet credit businesses into the comprehensive risk management system, conduct uniform credit-granting management of off-balance-sheet businesses and on-balance-sheet businesses, and establish the asset quality monitoring system for various assets. In order to effectively prevent and resolve risks of banking financial institutions within the jurisdiction of Shanghai Municipality, the Shanghai Office of the China Banking Regulatory Commission (“CBRC”) is to organize and conduct the self-examination of risks of emerging off-balance-sheet businesses. You are hereby notified of the relevant matters as follows:
I. Self-Examination Objectives
All institutions shall conscientiously implement the relevant requirements for preventing and resolving financial risks and strictly observing risk bottom lines and through all-dimensional self-examination, ensure that all off-balance-sheet credit businesses of the institutions are incorporated into the comprehensive risk management system, so as to satisfy the requirements of internal management and regulation.
II. Self-Examination Content
All institutions shall, according to the requirements of the relevant documents of the CBRC and the Shanghai Office of the CBRC, conduct the self-examination of off-balance-sheet credit businesses with business balance up to the end of April this year (including but not limited to those in categories of guarantee, commitment, financial asset services, and financial derivatives) in accordance with the Content of Self-Examination of Off-Balance-Sheet Credit Businesses (Annex 1) and fill out the Form for the Self-Examination of Off-Balance-Sheet Credit Businesses (Annex 2).
III. Self-Examination Requirements
1. Strengthening organization and deployment. All institutions shall strengthen organization and deployment and specify the functions of departments leading the self-examination and the relevant business departments. The self-examination shall cover all off-balance-sheet credit businesses.
2. Making rectification plans. All institutions shall conscientiously check business and risk bottom lines and for problems found in self-examination, develop the corresponding rectification measures and conduct rectifications in a timely manner.
3. Compiling self-examination reports. Upon completion of self-examination, all institutions shall compile special self-examination reports, which at least cover information on organization and implementation, self-examination results, and rectification plans and measures and prior to June 24, 2016, submit the form for self-examination as an annex to such self-examination reports to the competent regulation division (office) and the division of business innovation and regulatory cooperation of the Shanghai Office of the CBRC through the private network.

Contact person: Liang Jie, 021-38569817
Annexes:
1. Content of Self-Examination of Off-Balance-Sheet Credit Businesses (Omitted)
2. Form for Self-Examination of Off-Balance-Sheet Credit Businesses (Omitted)
General Office of the Shanghai Office of the China Banking Regulatory Commission
May 27, 2016