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CHINA
LombardRiskbusinessandregulatory complianceexpertsexplain:
Beijing Shanghai Renminbi StandardChinese 1,339,724,852 $7.298trillion $11.299trillion 9.2%(2012) MarxistLeninistsinglepartystate NationalPeoplesCongress 3,704,427miles2 nd 2 largest|Largestexporterofgoods nd intheworld|2 largestimporter| Fastestgrowingeconomy(butslowing) |Lowcostproduction 3.6[10good0bad]/75th Worldshighestpopulation|Largest standingarmy|2ndlargestcountryland area;apublicsuperpower|Expected toleadtheworldeconomyby2050| Exponential/uncontrolledgrowthhas severelyimpactedChinasresources andenvironment.Benefitsofeconomic developmenthasnotbeendistributed evenly,resultinginawidedevelopment gapbetweenurbanandruralareas
regulatoryenvironment inChina
Banksregulators
TheChinaBankingRegulatoryCommission(CBRC): TheCBRCwascreatedbytheStateCouncilofPRCin responsetoswellingdebtloads,undercapitalization andnontransparentbusinesspractices;itisthe countrysprimarybankregulatorsince2003. ThePeoplesBankofChina(PBC):ThePBCisthe centralbankofthePRC.Itcontrols,formulates,and implementsmonetarypolicy;consolidatesfinancial statisticsfromreportsintheindustryandproduces economicanalysisandforecast;issuesRenminbi (currency)andadministersitscirculation. TheStateAdministrationofForeignExchange(SAFE): TheSAFEisanadministrativeagencyunderthePBC, whichdraftsrulesandregulationsregardingforeign exchangemarketactivities;monitorsrisk,balanceof paymentandexternalcreditanddebt;development andsupervisionoftheforeignexchangemarket, reservesandassets. TheirroleistoregulatethebankingsectorofthePRC(Peoples RepublicofChina). Generally,datesforBaselIIIimplementationstartattheendof 2013,withdifferentdatesaccordingtowhethertheinstitutionis systematicallyimportantornot.Systematicallyimportantbanks haveuntiltheendof2013,whereasotherbankshavetilltheend of2016toimplementBaselIII,loanprovisionratioandleverage ratiosupervision.
Investmentfirmsregulator
TheChinaSecuritiesRegulatoryCommission(CSRC): Thenationsfirstcomprehensivesecuritieslegislation grantedtheCSRCauthoritytoimplementa centralisedandunifiedregulationofthenationwide securitiesmarketinordertoensuretheirlawful operations. LikeSAFE,theCSRCisanagencyofthePRC.Chinese firmsdominatetheprivateequitylandscapedueto foreignfirmsfacingmorestrictregulatoryandfunding challengesthandomesticfirmslikeBeijingbasedHony Capital.
hasasignificant business presenceinChina,havingcarriedout businessintheregionformanyyears.Our professionalservicesresourcesliaisewith thelocalbankingcommunityandare engagedinimplementingarangeof LombardRiskservicesandproduct, includingfullyautomatedregulatory reporting. LombardRiskREPORTERforregulatory compliance
Insurancefirmsregulator
TheChinaInsuranceRegulatoryCommission(CIRC): AuthorisedbythePRC,CIRCregulatestheChinese insuranceproductsandservicesmarketandmaintains legalandstableoperationsintheindustry. TheCIRCplanstoimplementthesecondphaseofitsown solvencyregulation(equivalentofSolvencyII)by2017.
Regulatorycompliance
GDPgrowth(%)ofChinaandcomparisons
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TheregulatoryobjectiveoftheCBRCisto: Protecttheinterestofdepositorsandconsumers throughprudentialandeffectivesupervision Maintainmarketconfidencethroughprudentialand effectivesupervision Enhancepublicknowledgeofmodernfinancethrough customereducationandinformationdisclosure Combatfinancialcrime ThesupervisoryandregulatorycriteriaoftheCBRCareto: Promotethefinancialstabilityandfacilitatefinancial innovationatthesametime Enhancetheinternationalcompetitivenessofthe Chinesebankingsector Setappropriatesupervisoryandregulatory boundariesandrefrainfromunnecessarycontrols Encouragefairandorderlycompetition Clearlydefinetheaccountabilityofboththe supervisorandthesupervisedinstitutions Employsupervisoryresourcesinanefficientandcost effectivemanner
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Bankcomposition
ExamplebankreturnsrequiredbytheCBRC
Name
/ Balancesheet / Loan qualityreport / Provisionofasset / Liquidityratiostatement / Basicstatementforforeign banks / P&L / Credit statementIII:top10clientloanlist / CreditstatementII:top10ofinterbankplacementlist / Credit statementI:top10ofgrouploanlist / Top20of relatedpartytransactionstatement / Liquiditygap /Top10ofdepositclient /Top10ofinterbank taken /Foreignexchangeriskexposure statement / Capitalratiostatement / Onbalancesheetweighted riskassetscalculationtable / Offbalancesheetweighted riskassetscalculationtable / Loanmovements
ChinaBankingRegulatoryCommission
ShangFulin LiuMingkang(2011) JiaNO.15FinancialStreet,Xicheng District,Beijing,100140 http://www.cbrc.gov.cn/english/in dex.html G14 G14 G15 G21 G23 G24 G32 G41 G42 G43 G12
Regulatorycompliance
ExamplebankreturnsrequiredbythePBC
Return B01 B02 B03 B06 B04 B05 B07 B09 B08
Name
/Balancesheet /P&L /Otherfinancialdata /Statementofloan (Classificationinthesizeofthecorporateclients) /Depositreservemonthlyreport /P&L (14 ) /Financial marketmonitoringandstatisticmonthlyreport(14 spreadsheets) - /CNYincomingand outgoingpaymentsquarterlyreport(9reports) /ForeignbankCNYincomingand outgoingpaymentsstatisticreport
LombardRisksREPORTERkeepspacewithregulatory requirements,automatingendtoendfromdatacollectionto electronicoutput,sogivingyoutheidealsolutionforall automatedregulatoryreportingrequirements. Withfullsupportforkeysupervisorycomputationsand powerfulworkflow,statusdashboards,graphicalpresentation oftrendsandvalidations,REPORTERdelivershugesavingsin timeandeffort,reducesoperationalrisk,anddelivers significantlyimprovedmanagementinformationand managementoversight. BaselIII,EBA/EuropeancommonreportingCOREP andFINREPandtransactionreporting,aswellas SolvencyIIfortheinsurancemarketplace Regulatorycomputationfromrawdatawith comprehensiveCapital,LiquidityandLargeExposures enginesaswellasdetailedstatisticalcomputations Automationofregulatormandatedandclient definedvalidationrules Supportforalltransmissionrequirementsincluding XBRL,XMLandproprietaryformats Powerfuldatamanagementfunctionalityovercomes TheDataProblem:fullyautomatedcleansing, consolidationandnormalisationofmultipledata sourcesirrespectiveofdataformat AutomatedStraightThroughProcessing(STP) enablesexceptionbasedmanagement,ensuring regulatoryreportingisautomatedunlessmanual interventionisneeded Workflowautomationjobstreamsyourproduction processenablingsignoffdependenciestobe achievedunderstricttimetableconditions Fullsecurityforallprocesses TrendsandVarianceanalysisprovidesautomated drilldowncomparisontools,significantlyaccelerating review,reconciliationandsignoff.Regulators enquiriesareanticipatedandeasilyanswered
ExamplebankreturnsrequiredbySAFE
Name
/FCYloanmovementreport /CNYloan coveredbyFCYguarantee /Loanscoveredby overseasguaranteeandguaranteeclaims
August2012