By Chen Yun (Robert), Wang Rong and Chai Beibei King & Wood Mallesons’ Finance & Capital Markets group

On February 13, 2018, the China Banking Regulatory Commission (the “CBRC”) promulgated the Decision on Amending the CBRC’s Implementation Measures for the Administrative Licensing Matters of Foreign-Invested Banks (CBRC Order 2018 No. 3, the “Order No.3”). Following a series of regulations and policies relating to opening-up of the banking industry issued in 2017 (the “2017 Regulations and Policies”), the Order No.3 is considered to be a further step of great significance for the purpose of implementing the general principles of further expanding opening-up, improving the levels of opening-up of the banking industry and streamlining administration and delegating more powers to lower-level authorities continuously.
Continue Reading Further Opening-up for Foreign-Invested Banks

By Xu Ping Iris Feng and Feng Yuan King & Wood Mallesons’ Mergers & Acquisitions Group

xu_pingOn April 9, 2015, the State Council officially promulgated the Decision on the Bank Card Clearing Agencies Access Management (《关于实施银行卡清算机构准入管理的决定》) (the“Decision”), which will come into effect on June 1, 2015.

As a response to a WTO ruling that China must open its bank card clearing market, the long awaited Decision announces the opening of market to both domestic and foreign players.  As a result, China UnionPay, the only domestic bank card clearing agency for decades, will usher competitors, including international card companies, banks, as well as domestic third party payment agencies, who will be able to operate RMB-denominated bank card clearing business in the People’s Republic of China (the “PRC” or “China”).
Continue Reading New Bank Card Clearing Rules Heralds a Post-UnionPay Era

作者:金杜律师事务所 银行部

2014年9月3日,中国银监会与国家发改委、工信部及科技部共同下发了《关于应用安全可控信息技术加强银行业网络安全和信息化建设的指导意见》(银监发[2014]39号文,下称“39号文”)。作为落实39号文的实施细则,银监会办公厅随后又于2014年12月26日,与工信部办公厅共同印发了《银行业应用安全可控信息技术推进指南(2014-2015年度)》(银监办发[2014]317号文,下称“317号文”)。39号文和317号文(以下合称“银监会新规”)旨在加强我国银行业乃至金融行业的信息安全,并为银行设定了一系列相关任务和指标,从而也引发了各银行业金融机构对银监会新规的广泛关注。
Continue Reading 中国加强银行IT监管

By Banking Team    King & Wood Mallesons

Overview

The China Banking Regulatory Commission (“CBRC”) jointly with three other government departments promulgated the CBRC Guidance Opinions on the Use of Secure and Controllable Technology to Strengthen the Internet Security and Information Construction of Banking Industry (YINJIANFA (2014) No. 39, the “CBRC Opinion”) on 3 September 2014. The Guidelines on Promoting the Use of Secure and Controllable Technology in Banking Industry (2014-2015) (YINJIANBANFA (2014) No. 317, the “CBRC Guidelines”) were later issued on 26 December 2014, as the detailed implementing rules of the CBRC Opinion. Targeting to improve the information security in the banking sector and in a larger sense, the financial security of China, the CBRC Opinion and the CBRC Guidelines (collectively, the “New Rules”) require that banks, within a specific timeframe, achieve a series of fixed targets in relation to applying “secure and controllable” IT products. This may have a significant impact on China’s banking industry and thus have already fuelled concerns in the market.
Continue Reading China Banking IT Regulation Tightened Up

By Armstrong Chen , Han Min and Zhang Jun King & Wood Mallesons’ Dispute Resolution Group

chen_armstrongOn December 26, 2014, The China Banking Regulatory Commission (CBRC) and the Ministry of Industry and Information Technology(MIIT) jointly issued the Guide to Promote Banking Application of Secure and Controllable Information Technology (2014 to2015) (CBRC Banfa [2014] No.317, “Guide No.317”,or the “Guide”). The Guide immediately triggered a heated discussion amongst domestic and foreign enterprises; and in particular by foreign information technology providers in China.  So controversial is the Guide that it has led to questions being passed from US President Barack Obama to his Chinese counterpart, President Xi Jinping. What is Guide No.317 and why has it been the cause of such controversy?
Continue Reading Quake invoked: The Guide to Promote Banking Application of Secure and Controllable Information Technology issued

By King & Wood’s Finance Group

The China Banking Regulatory Commission (the "CBRC") issued Guiding Opinions of the China Banking Regulatory Commission on the Implementation of the New Regulatory Standards by the Chinese Banking Industry (Yin Jian Fa [2011] No. 44) (the "Guiding Opinion") on April 27, 2011, which clearly creates new rules for liquidity and capital held by banks in accordance with the "Basel Accord III" ("Basel III"), and on the basis of comprehensively assessing the effectiveness of the current prudent regulatory system, to improve the capital adequacy ratio, leverage ratio, liquidity, loan loss reserve and other regulatory standards. The four new regulatory standards for capital listed above will be implemented on January 1, 2012.


Continue Reading New Capital Requirements for Banks Postponed

作者:金杜律师事务所融资

中国银行业监督委员会(“银监会”)于2011年4月27日发布了《中国银监会关于中国银行业实施新监管标准的指导意见》(银监发[2011]44号)(“《指导意见》”),明确将根据《第三版巴塞尔协议(Basel III)》确定银行资本和流动性监管新制度,在全面评估现行审慎监管制度有效性的基础上,提高资本充足率、杠杆率、流动性、贷款损失准备等监管标准,并提出上述四项新资本监管标准从2012年1月1日开始执行。


Continue Reading 商业银行资本监管新规暂缓实施

By Li Jinnan, Partner, King & Wood’s Banking Group 

The expansion of bank-trust cooperation and the practice of repackaging off-the-book bank loans into trust products for sale to consumers came under unprecedented scrutiny this July as the China Banking Regulatory Commission ordered trust companies to cease all cooperative work with banking organizations.

Recent reports reveal that the complete shutdown of bank-trust cooperation has now been repealed, but the CBRC’s new circular allowing banks to resume cooperation with trust companies has place a number of new conditions on the once burgeoning industry.


Continue Reading Trust Products Back on the Market

 By Li Jinnan and Jiang Hualiang, King & Wood’s Banking & Finance Practice

With the recent development of the service outsourcing industry, an increasing number of financial institutions (including banks, securities companies, insurance companies and fund management companies) use financial service outsourcing to reduce costs, enhance core competitiveness, and accomplish strategic goals. Financial institutions are able to benefit significantly from IT outsourcing, which is an important part of financial service outsourcing. At the same time, they must also confront the managing risks that are associated with IT outsourcing. Based on our past experience with counseling on IT outsourcing to financial institutions, the followings are the primary legal issues relating to the terms in and execution of  IT outsourcing agreements, using banking institutions ("banks") as examples. The discussion will focus on how banks should manage potential risks from negotiating such an agreement.


Continue Reading Legal Issues on IT Outsourcing of Financial Institutions