Monitoring and Assessment of Non-performing Assets of Commercial Banks Tentative Procedures
商业银行不良资产监测和考核暂行办法
The Procedures concern the monitoring, analysis and assessment of non-performing assets, in particular sources and analyses of data and information and the time for assessment report submission.
(Promulgated by the China Banking Regulatory Commission on, and effective as of, March 25, 2004.)
PART ONE: GENERAL PROVISIONS
(中国银行业监督管理委员会於二零零四年三月二十五日发布施行。)
第一章 总则
Article 1: These Procedures are formulated in accordance with the PRC Banking Regulation Law, the PRC Commercial Banking Law, and other relevant laws and administrative regulations to strengthen the sustained, prudent and effective regulation of commercial banks, to cause the commercial banks to perfect their internal control systems, to improve the quality of the assets, and to protect against risks.
第一条 为加强商业银行持续、审慎、有效监管，促进商业银行完善内控制度，提高资产质量，防范风险，根据《中华人民共和国银行业监督管理法》、《中华人民共和国商业银行法》及其他有关法律、行政法规，制定本办法。
Article 2: These Procedures shall be applicable to the monitoring and assessment of non-performing assets of commercial banks and their branches and sub-branches by the regulatory authorities of the China Banking Regulatory Commission (hereafter, the CBRC) at all levels.
第二条 本办法适用于中国银行业监督管理委员会(以下简称银监会)各级监管机构对商业银行及其分支机构不良资产的监测和考核。
Article 3: The monitoring and assessment of non-performing assets of commercial banks shall be the comprehensive monitoring and assessment of the risks of non-performing loans, non-credit assets and off-balance-sheet business activities.
第三条 商业银行不良资产的监测和考核包括对不良贷款、非信贷资产和表外业务风险的全面监测和考核。
Article 4: Non-performing loans shall be strictly handled according to the five-grade classification standards for loans. The classification standards for non-credit non-performing assets shall be formulated separately. Prior to such formulation, the classification standards for non-credit non-performing assets may be handled by making reference to the five-grade classification standards for loans.
第四条 不良贷款严格按照贷款五级分类标准执行，非信贷不良资产分类标准另行制定，制定前可参照贷款五级分类标准掌握。
PART TWO: MONITORING OF NON-PERFORMING ASSETS
第二章 不良资产的监测
Article 5: Commercial banks shall adopt effective measures to monitor and control their non-performing loans on a case-by-case and real-time basis, to monitor the changes in the risks of non-credit assets and off-balance-sheet business activities, as well as to directly monitor the key institutions and clients.
第五条 商业银行应采取有效方式，做到对不良贷款的逐笔、实时监控，以及非信贷资产、表外业务风险变化情况的监测，并对重点机构和客户进行直接监测。
The regulatory authorities of the CBRC at all levels shall establish and perfect their monitoring and assessment systems for non-performing assets.
银监会各级监管机构应建立和完善对不良资产监测、考核制度。
Article 6: Key institutions shall be: branches and sub-branches of banks ranking top five in terms of the non-performing loan ratio; branches and sub-branches of banks whose outstanding balance of non-performing loans is increasing rather than decreasing or whose non-performing loan ratio is rising rather than declining; branches and sub-branches of banks ranking top five in terms of the estimated loss ratio of non-credit assets; branches and sub-branches of banks whose management of off-balance-sheet business activities is in disorder and which have committed acts in violation of the laws or regulations.
第六条 重点机构包括：不良贷款率前5名的银行分支机构；不良贷款余额不减反增或不良贷款率不降反升的银行分支机构；非信贷资产预计损失率前5名的银行分支机构；表外业务管理混乱、发生违法违规行为的银行分支机构。
Key clients shall be: clients with an outstanding balance of non-performing loans of Rmb100 million or more and corporate clients with five or more affiliated enterprises and an aggregate outstanding balance of loans of Rmb100 million or more.
重点客户包括：不良贷款余额在亿元以上的客户及拥有5家以上关联企业、合计贷款余额在亿元以上的集团客户。
PART THREE: ANALYSIS OF NON-PERFORMING ASSETS
第三章 不良资产的分析
Article 7: The regulatory authorities of the CBRC at all levels, the commercial banks and their branches and sub-branches shall carry out an analysis on non-performing loans on a monthly basis and on non-performing assets on a quarterly basis, and shall make an overall judgment and assessment of the risks of the banks and the tendency of changes, give highlighted explanations on serious risk exposure and apparent changes, and form an analysis report. Analysis of non-performing assets shall include three parts: analysis of non-performing loans, analysis of the risks of non-credit assets, and analysis of the risks of off-balance-sheet business activities.
第七条 银监会各级监管机构、商业银行及其分支机构要按月对不良贷款、按季对不良资产进行分析，对银行风险状况和变化趋势作出总体判断和评价，对风险状况严重和变化明显的要重点说明，并形成分析报告。不良资产分析包括不良贷款分析、非信贷资产风险分析和表外业务风险分析三个部分。
Article 8: Analysis of non-performing loans shall mainly include the following:
第八条 不良贷款分析。主要包括以下内容：
(1) Basic information. Outstanding balance of loans, and outstanding balance and ratio of non-performing loans for the current period, as well as changes against the previous period and the beginning of the year. In the event of any major changes or unusual circumstances with respect to the overall trend, geographical distribution and industrial distribution, a highlighted analysis shall be conducted on the reasons therefor.
(一) 基本情况。本期贷款余额、不良贷款余额及比例以及与上期和年初比较的变化情况。如在整体趋势、地区分布及行业分布方面出现了重大变动和异常情况，应对其原因进行重点分析。
(2) Regional and client structures. Each commercial bank shall provide tables respectively explaining and analyzing the top 10 Grade One branches with relatively high outstanding balance or ratio of non-performing loans and the 10 clients with the largest outstanding balance of loans or non-performing loans. Each banking regulatory bureau shall determine at its own discretion the number of regions and clients according to actual circumstances.
(二) 地区和客户结构情况。各商业银行分别列表说明和分析不良贷款余额、不良贷款比例较高的前10名一级分行，以及贷款余额、不良贷款余额最大的10家客户。各银监局根据实际情况自行确定地区和客户数。
(3) Settlement and conversion of non-performing loans. Analysis may be conducted respectively according to the settlement in cash, the writing off of loans, the settlement of debts with assets and other forms.
(三) 不良贷款清收转化情况。可分别按现金清收、贷款核销、以资抵债和其他方式进行分析。
(4) Quality of newly advanced loans. Continuous monitoring and analysis shall be conducted on the quality of the loans advanced since 2003 and the status of the newly advanced loans for the current year.
(四) 新发放贷款质量情况。对2003年以来发放贷款质量和当年新发放贷款情况进行持续监测和分析。
(5) Analysis of the internal and external reasons for newly incurred non-performing loans and typical cases thereof. External reasons shall include poor operation and management or bankruptcy and winding-up of the enterprises, evasion and voiding of debts to the banks by the enterprises, violation of the laws and regulations by the enterprises, and administrative interference from the local governments; internal reasons shall include violation of the "three-inspection" system for loans, violation of the regulations on the authorization and granting of credits for loans, violation of the law by the employees of the banks.
(五) 新发生不良贷款的内、外部原因分析及典型案例。外部原因包括企业经营管理不善或破产倒闭、企业逃废银行债务、企业违法违规、地方政府行政干预等；内部原因包括违反贷款“三查”制度、违反贷款授权授信规定、银行员工违法等。
(6) Projection of the tendency of changes in non-performing loans shall be conducted and measures and opinions for continuing the proper management or regulation of non-performing loans shall be proposed.
(六) 对不良贷款的变化趋势进行预测，提出继续抓好不良贷款管理或监管工作的措施和意见。
Article 9: Analysis of the risks of non-credit assets shall mainly include the following:
第九条 非信贷资产风险分析。主要包括以下内容：
(1) Basic information. Outstanding balance of non-credit assets, and outstanding balances and ratios of non-performing assets and estimated losses for the current period, and changes against the previous period and the beginning of the year. In the event of relatively significant changes in the non-credit non-performing assets and estimated losses for the current period, an analysis shall be conducted on the underlying reasons, especially changes in various types of assets pending disposal, assets pending verification, and audited funds from accounts receivable.
(一) 基本情况。本期非信贷资产余额，不良资产、预计损失余额及比例，以及与上期和年初比较的变化情况。如本期非信贷不良资产及预计损失变动较大，应对其原因进行分析，特别是各类待处理资产、待清理资产、应收科目核算的资金变化情况。
(2) Analysis of geographical structure. Each commercial bank shall provide tables respectively explaining and analyzing the top 10 Grade One branches whose outstanding balance and ratio of non-credit non-performing assets and estimated losses are relatively high. Each banking regulatory bureau may determine at its own discretion the number of regions according to actual circumstances.
(二) 地区结构分析。各商业银行分别列表说明和分析非信贷不良资产、预计损失余额及占比较高的前10名一级分行。各银监局可根据实际情况自行确定地区数。
(3) Analysis of the settlement and disposal of non-credit non-performing assets.
(三) 清收、处置非信贷不良资产分析。
(4) Analysis of the reasons for the newly incurred non-credit non-performing assets since 2003, especially the issues existing in internal risk controls and typical cases thereof.
(四) 2003年以来新发生非信贷不良资产原因分析，特别是内部风险控制方面存在的问题及典型案例。
(5) Projection of the tendency of changes in non-credit non-performing assets and estimated losses, and measures and opinions for continuing the proper management or regulation of non-credit assets.
(五) 非信贷不良资产及预计损失变化趋势的预测，以及继续抓好非信贷资产管理或监管工作的措施和意见。
Article 10: Analysis of the risk exposure of off-balance-sheet business activities shall mainly include the following:
第十条 表外业务风险分析。主要包括以下内容：
(1) Basic information. Outstanding balance of off-balance-sheet business activities and outstanding balance and ratio of advances (or losses) for the current period, and changes against the previous period and the beginning of the year. Off-balance-sheet business activities with increasing outstanding balance of advances shall require highlighted explanation.
(一) 基本情况。本期各项表外业务余额，垫款(或损失)余额及占比，以及与上期和年初比较的变化情况；对垫款余额上升的表外业务要重点说明。
(2) Analysis of geographical structure. Each commercial bank shall provide tables respectively explaining and analyzing the top 10 Grade One branches with relatively rapid development of off-balance-sheet business activities and with relatively more advances. Each banking regulatory bureau may determine at its own discretion the number of regions according to actual circumstances.
(二) 地区结构分析。各商业银行分别列表说明和分析表外业务发展较快和发生垫款较多的前10名一级分行。各银监局可根据实际情况自行确定地区数。
(3) Analysis of the reasons for the forming of advances for off-balance-sheet business activities, especially the issues existing in internal risk controls and typical cases thereof.
(三) 表外业务垫款形成原因的分析，特别是内部风险控制方面存在的问题及典型案例。
(4) Projection of the tendency of changes in advances for off-balance-sheet business activities and measures and opinions for continuing the proper management or regulation of off-balance-sheet business activities.
(四) 表外业务垫款变化趋势的预测，以及继续抓好表外业务管理或监管的措施和意见。
PART FOUR: ASSESSMENT OF NON-PERFORMING ASSETS
第四章 不良资产的考核
Article 11: The regulatory authorities of the CBRC at all levels shall conduct assessment on a quarterly basis of the non-performing assets and the management thereof of commercial banks and their branches and sub-branches.
第十一条 银监会各级监管机构要按季对商业银行及其分支机构不良资产及管理情况进行考核。
Article 12: The assessment of non-performing assets shall be divided into the assessment of the quality of loans, the quality of non-credit assets, and the quality of off-balance-sheet business activities. The contents of such assessment shall include the assessment of the outstanding balance and ratio of non-performing assets, and the progress of the bank subject to assessment shall be reflected through horizontal and vertical comparisons.
第十二条 不良资产考核分为对贷款质量、非信贷资产质量和表外业务质量的考核。考核内容包括对不良资产的余额和比例的考核，并从横比、纵比两方面反映被考核银行的进步度。
Article 13: The indicators for the assessment of the quality of loans shall include the ratio of non-performing loans, the changes in the ratio of non-performing loans, the changes in the outstanding balance of non-performing loans, the rate of change in the outstanding balance of non-performing loans, the extent of change in the outstanding balance of non-performing loans, the extent of change in the ratio of non-performing loans and the rate of progress in the settlement in cash.
第十三条 贷款质量考核指标包括不良贷款比例、不良贷款比例变化、不良贷款余额变化、不良贷款余额变化率、不良贷款余额变化幅度、不良贷款比例变化幅度和现金清收进步率。
The indicators for the assessment of the quality of non-credit assets shall include the ratio of non-credit non-performing assets, the changes in the ratio of non-credit non-performing assets, the changes in the outstanding balance of non-credit non-performing assets, the rate of change in the outstanding balance of non-credit non-performing assets, the extent of change in the outstanding balance of non-credit non-performing assets, and the extent of change in the ratio of non-credit non-performing assets.
非信贷资产质量考核指标包括非信贷不良资产比例、非信贷不良资产比例变化、非信贷不良资产余额变化、非信贷不良资产余额变化率、非信贷不良资产余额变化幅度和非信贷不良资产比例变化幅度。
The indicators for the assessment of the quality of off-balance-sheet business activities shall include the ratio of advances for off-balance-sheet business activities, the changes in the ratio of such advances, the changes in the outstanding balance of such advances, the rate of change in the outstanding balance of such advances, the extent of change in the outstanding balance of such advances, and the extent of change in the ratio of such advances.
表外业务质量考核指标包括表外业务垫款比例、垫款比例变化、垫款余额变化、垫款余额变化率、垫款余额变化幅度和垫款比例变化幅度。
Article 14: The regulatory authorities of the CBRC at all levels shall make an overall evaluation on a quarterly basis of the non-performing assets and the management thereof of commercial banks according to the progress of their assessment of the non-performing assets of commercial banks, and shall submit their reports on the assessment of non-performing assets on a quarterly basis.
第十四条 银监会各级监管机构根据对商业银行不良资产考核进步度情况，按季对商业银行不良资产及管理情况作出综合评价，并按季上报不良资产考核报告。
The result of the assessment of non-performing assets shall serve as an important reference for the annual assessment and evaluation of commercial banks.
不良资产考核结果将作为商业银行年度考核评价的重要参考。
Article 15: The regulatory authorities of the CBRC at all levels shall, on a quarterly basis or on an irregular basis according to the risk exposure, conduct interviews to receive reports on the changes in non-performing assets from the commercial banks subject to their jurisdiction, and shall circulate to the commercial banks the result of the assessment of non-performing assets and put forward their opinions on the prevention and resolution of non-performing assets.
第十五条 银监会各级监管机构应每季度或根据风险状况不定期采取约见会谈的形式，听取辖内商业银行不良资产变化情况的汇报，并向其通报不良资产考核结果，提出防范化解不良资产的意见。
PART FIVE: SOURCES AND ANALYSES OF DATA AND INFORMATION, AND TIME FOR SUBMITTING THE ASSESSMENT REPORTS
第五章 数据、资料来源及分析、考核报告的上报时间
Article 16: The data and information in the reports on the analysis and assessment of non-performing assets shall originate from off-site regulatory statistical statements, other statistical statements required by the CBRC and reports on the analysis of non-performing assets submitted by commercial banks.
第十六条 不良资产分析和考核报告的数据和资料来源于非现场监管统计报表、银监会要求的其他统计报表以及商业银行报送的不良资产分析报告。
Article 17: The regulatory authorities of the CBRC at all levels shall verify key data based on the information they keep track of on a daily basis and through on-site inspections. In the event of any major adjustment, they shall provide an explanation in their analysis and assessment reports.
第十七条 银监会各级监管机构根据日常掌握的情况，并通过现场检查对重点数据进行核实。如有重大调整，应在分析考核报告中予以说明。
Article 18: The head office of each commercial bank shall submit its report on the analysis of non-performing loans for the preceding month to the CBRC prior to the 15th day of each month, and shall submit its quarterly and annual analysis reports on non-performing assets respectively within 20 days after the end of each quarter and within 30 days after the end of each year.
第十八条 各商业银行总行每月15日前向银监会报送上月不良贷款分析报告，并分别于季后20日之前、年后30日之前上报不良资产季度、年度分析报告。
Each banking regulatory bureau shall submit its report on the analysis of non-performing loans for the preceding month to the CBRC prior to the 15th day of each month, and shall submit its quarterly and annual analysis and assessment reports on non-performing assets respectively within 20 days after the end of each quarter and within 30 days after the end of each year. In the event of a major change in the non-performing assets subject to its jurisdiction, a report shall be submitted in a timely manner. The time for the branches and sub-branches of commercial banks to submit their analysis reports shall be determined by each banking regulatory bureau.
各银监局每月15日前向银监会报送上月不良贷款分析报告，并分别于季后20日之前、年后30日之前上报不良资产季度、年度分析和考核报告。如辖内不良资产情况出现重大变动，应及时报告。商业银行分支机构分析报告的上报时间由各银监局确定。
PART SIX: LIABILITIES FOR THE MANAGEMENT AND REGULATION OF NON-PERFORMING ASSETS
第六章 不良资产管理及监管责任
Article 19: Commercial banks shall strengthen their management of non-performing assets, submit the analysis reports on non-performing assets to the regulatory authorities of the CBRC at all levels on schedule, submit reports in a timely manner in the event of major incidents, and ensure that the data of non-performing assets are true and accurate, the analysis of the reasons therefor are comprehensive and in-depth, the analysis of the trend is rational and scientific, and the measures are timely and effective.
第十九条 商业银行应加强不良资产管理，按时向银监会各级监管机构报送不良资产分析报告，重大情况及时上报，并确保不良资产数据真实、准确，原因分析全面、深入，趋势分析合理、科学，措施及时、有效。
Article 20: In the event that any commercial bank or any of its branches or sub-branches fails to submit reports in a timely manner in accordance with the requirements of these Procedures or conceals and fails to report any major problems, the CBRC shall impose punishments in accordance with, among other laws and regulations, the PRC Banking Regulation Law, the PRC Commercial Banking Law, and the Penalties for Illegal Financial Acts Procedures, and the provisions of relevant financial rules.
第二十条 对商业银行及其分支机构不按本办法要求及时报送报告或对重大问题隐瞒不报的，银监会按照《中华人民共和国银行业监督管理法》、《中华人民共和国商业银行法》、《金融违法行为处罚办法》等法律、法规及相关金融规章的规定，予以处罚。
For the principal in charge and the related responsible person(s) of the organization that has committed an act in violation of the laws or regulations, the CBRC shall, in accordance with the relevant provisions, give a warning, impose a fine, cancel the qualifications of the senior managerial personnel for the relevant positions or, pursuant to the administrative authority for cadres, order the commercial bank to impose disciplinary sanctions; where a criminal offence is constituted, the liability shall be investigated and established in accordance with the law.
对发生违法违规行为的机构主要负责人及有关责任人，银监会将依据有关规定给予警告、罚款、取消高级管理人员任职资格，或按干部管理权限责令商业银行给予纪律处分；构成违法犯罪的，依法追究责任。
Article 21: The regulatory authorities of the CBRC at all levels shall establish a professional responsibility system for the regulatory personnel according to the credit assets, non-credit assets and off-balance-sheet business activities, and shall submit to their superior authorities in a timely manner the reports on the analysis and assessment of the non-performing assets of the commercial banks subject to their jurisdictions.
第二十一条 银监会各级监管机构应按照信贷资产、非信贷资产和表外业务建立专业化监管人员责任制，及时向上级机构报送辖内商业银行不良资产分析和考核报告。
Article 22: For commercial banks and their branches and sub-branches with problems such as heavy non-performing assets, poor operation and management, or being involved in major cases, the regulatory authorities of the CBRC at all levels shall take effective regulatory measures, including suspending the examination and approval of the establishment and upgrading of organizations and the commencement of new business activities.
第二十二条 对不良资产严重、经营管理不善、发生重大案件等问题的商业银行及其分支机构，银监会各级监管机构应采取有效的监管措施，包括暂停审批机构设立、升格、新业务开办等。
Article 23: For the regulatory departments that fail to submit their analysis and assessment reports on non-performing assets in a timely manner in accordance with the requirements, their superior authorities shall issue to such regulatory authority a circular of criticism; in the event that such regulatory authority conceals and fails to report any major problems, administrative sanctions shall be imposed in accordance with the relevant provisions; where a criminal offence is constituted, the liability shall be investigated and established in accordance with the law.
第二十三条 对不按要求及时上报不良资产分析和考核报告的监管部门，上级机构将对其通报批评；对重大问题隐瞒不报的，依据有关规定给予行政处分；对构成犯罪的，依法追究责任。
PART SEVEN: SUPPLEMENTAL PROVISIONS
第七章 附则
Article 24: Each commercial bank may formulate its corresponding implementing rules pursuant to these Procedures.
第二十四条 各商业银行可根据本办法制定相应的实施细则。
Article 25: The CBRC may adjust and amend these Procedures according to the actual regulation so as to ensure the effectiveness of regulation.
第二十五条 银监会可根据监管的实际情况，对本办法进行调整和修改，以保证监管的有效性。
Article 26: The CBRC shall be responsible for interpreting these Procedures.
第二十六条 本办法由银监会负责解释。
Article 27: These Procedures shall be implemented from the date of promulgation.
第二十七条 本办法自公布之日起施行。
1. Translation provided by White & Case.
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