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:
- Review of anti-money laundering and anti-terrorist financing materials. Improvements to equity inspections and shareholder commitments.
- 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.
- Additional requirements for application materials in relation to criminal activity, and consumer rights protections.