China Banking and Insurance Regulatory Commission and People's Bank of China, Measures for the Administration of the Capital of Commercial Banks (Draft for Comments)

Issued: February 18, 2023

Main contents: The revised Measures divide banks into three tiers based on the scale of their interbank business and risk differences. Banks that are of relatively large scale or that have a relatively large volume of cross-border business are classified as first tier and benchmarked against international rules for capital regulation. Banks the scale of whose assets is relatively small and the volume of whose cross-border business is relatively small are included in the second tier and are subject to relatively simplified regulatory rules. The third tier mainly incorporates commercial banks with a scale of less than RMB 10 billion, their capital measurement is further simplified and they are guided to focus on serving counties and the small and micro.

Commercial banks shall use the penetration method and authorized basis method to measure the risk-weighted assets of their asset management products to the extent of the information they can obtain.