CBIRC Issues New Rules for Non-bank Financial Institution Licensing


China’s banking authority has issued a new set of requirements for the licensing of non-banks financial institutions

The China Banking and Insurance Regulatory Commission (CBIRC) has just issued the latest version of the “Non-bank Financial Institution Administrative Licensing Item Application Materials Catalogue and Formatting Requirements,” (非银行金融机构行政许可事项申请材料目录及格式要求), according to a statement made by the authority via its official website on 19 July.

CBIRC said that the Catalogue serves as a complement to the implementation of the “China Banking and Insurance Regulatory Commission Non-bank Financial Institution Administrative Licensing Items Implementation Measures” (中国银保监会非银行金融机构行政许可事项实施办法), and is the fourth amendment of the Catalogue following its initial release in 2007.

The catalogue is applicable to non-bank financial institutions including:

  • Financial asset management companies.
  • Enterprise group financial companies.
  • Financial leasing companies.
  • Vehicle financing companies.
  • Currency brokerages.
  • Offshore non-bank financial institutions with representative offices in China.

According to CBIRC the goal of the amended version is to “incorporate new regulatory guidance and requirements, expand the simplification of administrative [procedures] and delegation, and drive the standardisation, convenience and efficiency of administrative permit work.”

CBIRC said key areas of focus for the Measures will include:

  1. Review of anti-money laundering and anti-terrorist financing materials. Improvements to equity inspections and shareholder commitments.
  2. Further simplification and refinement of application materials, including cancelation of the need to provide photocopies of operating licenses and enterprise group registrations, or personal credit reports.
  3. Additional requirements for application materials in relation to criminal activity, and consumer rights protections.