China Banking Regulatory Commission, Guidelines for the Consolidated Supervision of Banks (Trial Implementation)

Issued: February 4 2008
Effective: as of date of issuance
Interpreting Authority: the banking regulatory authority

Applicability: These Guidelines shall apply to commercial banks established in the People's Republic of China in accordance with the law and their subordinate organizations (hereinafter collectively referred to as “Banking Groups”). The term “subordinate organizations” means the domestic and foreign subsidiary banks, non-bank financial institutions, non-financial organizations and other organizations falling within the scope of consolidation in accordance herewith that are controlled by a bank (Article 2).

For the purposes of these Guidelines, the term “consolidated supervision” means, on the basis of the supervision of a single legal person, the comprehensive and ongoing supervision of the capital, finances and risks of a Banking Group to identify, weigh, monitor and evaluate its overall risk position (Article 3).