CBIRC Issues New Rules on Financial Leasing Companies

114

China’s banking regulator has issued new rules concerning the operation of financial leasing companies.

The China Banking and Insurance Regulatory Commission (CBIRC) recently released the “Financial Leasing Company Project Company Administrative Measures” (金融租赁公司项目公司管理办法), which came into effect on the day of release.

CBIRC said that the purpose of the new rules is to “improve the regulatory system for financial leasing companies, standardise the undertaking of financial leasing operations by financial leasing companies in the form of project companies, and strengthen risk prevention.”

The Measures require that financial leasing companies and their specialist subsidiaries abide by the principle of consolidated management and strengthen risk management, while also clarifying the specific regulatory duties of CBIRC itself in relation to financial leasing companies.