Questions and answers by CBRC on the disclosure guidelines on capital adequacy ratio of trade banks

The director of the CBRC issued the guidelines on the disclosure of the capital adequacy ratio of trade banks. Recently, the CBRC issued the "Trade bank capital Adequacy Information Disclosure Guidelines" (hereinafter referred to as the "Guidelines"), the CBRC responsible for the relevant topics answered the reporter questions.　　Q: Why should the implementation of the "Trade bank capital adequacy ratio information disclosure Guidelines"? A: At present, China's banking information disclosure situation in different regions, different institutions there are large differences. Some of the banks, of course, have formulated the information disclosure policy, initially established the information disclosure of the governance system, but overall still not enough norms.　　In order to steadily advance the process of the new Basel Capital Accord, further standardize the disclosure of the capital adequacy ratio of the trade banks and promote the prudent operation of the trade banks, the CBRC formulated the guidelines.　　Q: What is the relationship between the guidelines on the disclosure of capital adequacy ratios of trade banks and other guidelines of the new capital Accord? A: At present, the CBRC has issued the first batch of 5 official drafts on the relevant guidelines for the new capital Agreement and released the second batch of 8 draft submissions. As one of the important guidelines, this guideline is mainly to require trade banks to openly reveal important information such as asset classification, risk identification, internal rating, capital measurement and internal capital adequacy assessment in the process of implementing other guidelines, which will help further improve the disclosure of trade banks ' information and improve the transparency of the banking industry, Strengthen the external governance of the trade bank, lay the foundation of the effective market restraint.　　It can be said that the guideline, as one of the relevant guidelines of the new agreement, is an important part of the implementation of the new agreement system, which is to refine and further request the information disclosure work and disclosure in other guidelines of the new capital Accord.　　Q: What are the implications for trade banks and ordinary financial consumers of the publication of the guidelines on disclosure of capital adequacy ratios for trade banks? Answer: For the financial consumers, the release of the guideline makes the trade bank information more perfect, which is beneficial to the majority of depositors and investors to understand the situation of the trade bank more comprehensively, to better protect the realization of the right to know by law, and to make the trade banks pay more attention to the quality of their own development, Better protect the interests of the vast financial consumers. For the trade bank, the formal promulgation and implementation of the guideline put forward new and higher requirements for the implementation of new capital Agreement and the information disclosure of the trade bank. First of all, the guidelines provide specific requirements for directors and executive duties, disclosure frequencies and disclosure, and explicitly require trade banks to develop practical capital adequacy information disclosure processes and to integrate effectively with existing information disclosure content and processes.　　Secondly, the guideline is not only the outward manifestation of information, but more importantly, it requires the trade bank to raise the capital and the risk management ability comprehensively through the stipulation disclosure content, has raised the higher request to the Trade Bank new capital Agreement implementation work. Q: Which banks need to demonstrate capital adequacy information?　　How does the guideline relate to information disclosure in Accounting standards and securities regulation? A: The guideline applies to the Bank of China, issued by the CBRC in 2007New capital agreement banks and other trade banks that voluntarily implement the new capital Accord, as defined in the new Capital Accord directive. The disclosure of the guideline is mainly confined to the disclosure of the capital adequacy ratio of banks, which is not contradictory to the requirements of accounting standards. In accordance with the guidelines, banks should make the necessary explanations if there is a significant difference between disclosure and disclosure of accounting standards or securities regulatory requirements.　　Disclosure is not subject to external audit, except where the securities regulatory body or other authority otherwise requires it.　　Q: What are the requirements for disclosure in the guidelines? A: According to rule fifth of the guideline, trade banks should disclose important information such as capital and capital adequacy ratios, risk exposures and assessments. For trade banks, proprietary or confidential information does not reveal specific items, but must be a general disclosure of the information required to be disclosed.　　The proprietary and confidential information here shall be subject to the following conditions: If the information is published openly, it will cause serious damage to the competitive advantage of the company; the company shall have a legally binding obligation to the customer or other counterparty in respect of the information, so that the company cannot disclose such information externally.　　Q: How will the CBRC monitor banks to make appropriate disclosure in accordance with the guidelines on the disclosure of capital adequacy ratios of trade banks?　　A: This guideline has added a monitoring and inspection clause to strengthen the disclosure requirement, that is to say, the supervision part should supervise and supervise the trade bank information disclosure in accordance with the law, monitor the trade bank to establish a sound information disclosure governance system, and take corresponding measures when the information disclosure of trade Bank is defective or abnormal.　　Q: What is the frequency of disclosure of the guidelines on the disclosure of capital adequacy ratios of trade banks? A: The information disclosed in the guidelines is divided into: temporary, Quarterly, Half-year and annual disclosure. The fifth chapter 46th clearly requires the trade bank to display the relevant information according to the following frequencies respectively. First, the changes in paid-in capital or common stock and other capital instruments should be disclosed in a timely manner. Second, the core capital total, the total ancillary capital, capital adequacy ratio, core capital adequacy ratio and other important information should be revealed quarterly. Third, the capital adequacy ratio and the table scope, capital and capital adequacy ratio, total credit risk exposure, overdue and total non-performing loans, loan impairment plan preparation and change, risk exposure balance after sustained release of credit risk portfolio, risk exposure balance of asset securitization, capital requirement of market risk and value of final risk and uniform risk　　, manipulation of risk, equity investment and its fair value and the sale and liquidation of the realized gains or losses, bank account interest rate risk and other relevant important information should be disclosed every six months.　　Q: How should the banks allowed to implement the new capital accord be involved in the interim? A: The banks that implement the new capital accord will, during the transition period, reveal the relevant quantitative information of capital adequacy ratio in accordance with the relevant requirements of the China Banking Regulatory Commission's "trading bank capital adequacy ratio", and at the same time reveal the qualitative information and the quantitative information of capital baseline as stipulated in this guideline.