Defence

The CBIRC is issuing new rules regarding the methods of expected credit losses




China’s banking authorities have released a new set of rules on methods for estimating the expected credit losses of commercial lenders.

The China Banking and Insurance Regulatory Commission (CBIRC) announced on May 18 that it had recently published “Measures to Implement the Commercial Bank’s Expected Credit Loss Method” (商业 银行 预期 信用 损失 法 实施 管 箞 施).

The CBIRC said the new measures aimed to standardize internal control mechanisms and procedures for managing expected credit loss methods, as well as “strengthen” the framework for managing credit risk reserves.

Measures focus on standardization in four key areas, including:

  1. Clarification of administrative mechanisms for the implementation of expected credit loss methods.
  2. Strengthening the basis for the implementation of methods of expected credit losses.
  3. Standardization of procedures for implementing the method of expected credit losses.
  4. Strengthen regulation of expected credit loss methods.





https://www.chinabankingnews.com/2022/05/20/cbirc-issues-new-rules-on-expected-credit-loss-methods/ The CBIRC is issuing new rules regarding the methods of expected credit losses

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