The China Banking and Insurance Regulatory Commission (CBIRC) has just released new trial regulations for the assessment of financial leasing companies.
At the start of July CBIRC issued the “Financial Leasing Company Regulatory Assessment Measures (Trials)” (金融租赁公司监管评级办法（试行）) for the purposes of “improving the regulatory system for financial leasing companies, strengthening category-based regulation, and driving the healthy sustainable growth of financial leasing companies.”
According to CBIRC the Measures primarily encompass:
- Setting of regulatory assessment factors and methods. Factors will cover the four areas of capital management, management quality, risk management, strategic management and professional capability, with weightings of 15%, 25%, 35% and 25% respectively.
- Clarification of regulatory assessment operations and procedures. CBIRC’s delegated offices are responsible for initial assessment, CBIRC then performs re-inspection and feedback on regulatory assessment results and filing. Annual assessment work is in principle completed before the end of May each year.
- Strengthening of usage of regulatory assessment results. The regulatory assessment results are expanded to provide greater clarity, to Grade 1, Grade 2 (A, B), Grade 3 (A,B) Grade 4 and Grade 5, for five grades and seven ranks in total.