The State Administration of Foreign Exchange (SAFE) has provided further clarification on assessments of the forex operations of Chinese banks.
On 15 October SAFE issued the “Bank Foreign Exchange Operation Qualified and Prudential Operation Assessment Contents” (银行外汇业务合规与审慎经营评估内容) to its offices around the country, as well as each of the nationwide Chinese banks.
According to the directive the formula for the final assessment mark for bank headquarters is as follows:
Final assessment mark of head bank = compliant operation assessment index mark x (100 – the final and confirmed prudential operating assessment index mark) + the prudential operating assessment index mark.
