China’s banking regulator has issued new draft measures for the provision of financial services during sudden contingencies.
On 16 July the China Banking and Insurance Regulatory Commission (CBIRC) issued the draft version of the “Administrative Measures for Banking and Insurance Institution Financial Services in Response to Sudden Events” (银行保险机构应对突发事件金融服务管理办法) for the solicitation of opinions from the public.
The Opinions highlight a total of four principles for the provision financial services during sudden contingencies including:
- The principle of upholding standard management. “Banking and insurance institutions should establish work mechanisms for sudden contingency response, and include management of sudden contingency response in comprehensive risk management systems.”
- The principle of upholding prompt disposal. “Banking and insurance institutions should promptly launch response advance plans, formulate scientific emergency measures, allocate required resources, and promptly and resolutely adjust financial services measures.
- The principle of minimum impact. “Banking and insurance institutions should adopt necessary measures to minimise the impact of sudden contingencies on the continuous operation of business and the function of financial services, to ensure the continued provision of basic financial services.”
- The principle of social responsibility. “Banking and insurance institutions should fully assess the impact of sudden contingencies on clients, staff and social and economic development, and under the precondition the risk is controlled provide financial services for the convenience of the people, appropriately protect the lawful rights and interests of staff, and actively support enterprise that are heavily impacted by sudden contingencies.”
The Opinions also call for insurance companies to promptly develop insurance products based on demand created by emergencies, and expand the provision of disaster insurance, enterprise asset insurance, secure production liability insurance, export credit insurance and agricultural insurance.