China Insurance Regulatory Commission, Circular on the Engagement in Interest Rate Swaps by Insurance Institutions

中国保险监督管理委员会关于保险机构开展利率互换业务的通知

September 04, 2010 | BY

clpstaff &clp articles &

All insurance institutions allowed to conduct interest rate swaps.

Clp Reference: 3910/10.07.14 Promulgated: 2010-07-14

Issued: July 14 2010

Applicability: The term “interest rate swap” refers to a financial contract whereby both parties to the transaction agree to exchange interest calculated according to the agreed principal and interest rate within a certain time period in future (Article 1).

Main contents: Where an insurance institution engages in interest rate swaps, its nominal principal amount may not exceed 10% of its assets with fixed earnings (including bank deposits, bonds and other debt-type investment instruments) at the end of the previous quarter. Its nominal principal amount for interest rate swaps with the same counterparty may not exceed 3% of its assets with fixed earnings at the end of the previous quarter (Article 5).

Related legislation: PRC Insurance Law, Jun 30 1995, CLP 1995 No.8 p.16

clp reference:3910/10.07.14promulgated:2010-07-14

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