China Banking and Insurance Regulatory Commission, Circular on Matters Relevant to the Investment of Insurance Capital in Bank Capital Replenishment Bonds

中国银行保险监督管理委员会关于保险资金投资银行资本补充债券有关事项的通知

June 11, 2020 | BY

Susan Mok

CBIRC relaxes insurance capital investment in bank capital replenishment bonds

Clp Reference: 3910/20.05.20 Promulgated: 2020-05-20
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Issued: May 20, 2020

Main contents: Insurance capital may be invested in tier-2 capital bonds and perpetual capital bonds issued by banks (Article 1).

The credit risk management capabilities of an insurance institution that wishes to invest in tier-2 capital bonds or perpetual capital bonds of a bank shall satisfy the criteria specified by the CBIRC, and the institution's solvency adequacy ratio as at the end of the previous quarter may not be less than 120%. If the solvency adequacy ratio of an insurance institution falls below 120% while it is holding capital supplementation bonds, it shall revise its investment strategy in a timely manner and take effective measures to control the relevant risks (Article 3).

Repealed legislation: Circular on Matters Relevant to the Investment of Insurance Capital in Bank Capital Replenishment Bonds

clp reference: 3910/20.05.20 issued: 2020-05-20

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