China’s top financial regulators released a new list of the country’s systemically important banks following the latest round of annual assessments.
The list released by the People’s Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) on 9 September encompasses a total of 19 domestic banks, including all six of the big state-owned banks; 9 joint-stock banks and 4 municipal commercial banks.
The 19 systemically important banks are divided into a total of five groups of increasing importance, including:
Group 1: China Minsheng Bank, China Everbright Bank, Ping An Bank, Huaxia Bank, Bank of Ningbo, Guangfa Bank, Bank of Jiangsu, Bank of Shanghai, Bank of Beijing.
Group 2: China CITIC Bank, Postal Savings Bank of China, Shanghai Pudong Development bank.
Group 3: Bank of Communications, China Merchants Bank, Industrial Bank Co., Ltd.
Group 4: Industrial and Commercial Bank of China, Bank of China, China Construction Bank, Agricultural Bank of China.
Regulators have yet to allocate any institutions to a theoretical fifth group.
PBOC and CBIRC said that the next step would be to “continue to effectively perform additional regulatory work for systemically important banks, strengthen combined macro-prudential management and micro-prudential regulation, and expedite the stable operations and healthy development of systemically important banks.”