The State Financial Supervision and Administration Bureau promulgated the Measures for Capital Management of Commercial Banks.

CCTV News:According to the website of the State Financial Supervision and Administration Bureau, in order to implement the spirit of the Central Financial Work Conference and comprehensively strengthen financial supervision, the State Financial Supervision and Administration Bureau has formulated the Measures for Capital Management of Commercial Banks (hereinafter referred to as the "Capital Measures"), further improving the capital supervision rules of commercial banks, promoting banks to strengthen their risk management level and improving the quality and efficiency of serving the real economy. The Capital Measures came into effect on January 1, 2024.

Based on the actual situation of China’s commercial banks and referring to the latest achievements of international regulatory reform, the Capital Measures have comprehensively improved the capital supervision system. The Capital Measures consists of a text and 25 annexes. The main contents include: First, build a differentiated capital supervision system to match capital supervision with the scale and business complexity of banks and reduce the compliance costs of small and medium-sized banks. Second, revise the risk-weighted asset measurement rules comprehensively, including credit risk weighting method and internal rating method, market risk standard method and internal model method, and operational risk standard method, so as to enhance the risk sensitivity of capital measurement. Third, banks are required to formulate effective policies, processes, systems and measures to fully grasp the changes of customer risks in a timely manner and ensure the applicability and prudence of risk weights. Fourth, strengthen supervision and inspection, optimize stress testing, deepen the application of the second pillar, and further enhance the effectiveness of supervision. Fifth, improve information disclosure standards, strengthen relevant qualitative and quantitative information disclosure, and strengthen market constraints.

The Capital Measures is an important measure to implement the CPC Central Committee’s decision-making arrangements on strengthening and improving modern financial supervision. The State Financial Supervision and Administration will guide commercial banks to implement the Capital Measures, give play to the guiding role of capital requirements in the allocation of resources of commercial banks, guide banks to optimize their asset structure, increase their efforts to serve the real economy, and provide strong financial support for Chinese modernization with high-quality development.