China's top banking and insurance regulator released trial measures for the comprehensive regulatory rating of foreign banks' Chinese branches on Tuesday.
Ratings will be made based on the core factors of a branch of a foreign bank, such as risk management, operations control, compliance and asset quality, as well as the level of support they receive from their head offices, which involves the assessment of operating risks, financial conditions and management capabilities of their head offices, said the China Banking and Insurance Regulatory Commission on its website.
The CBIRC said regulatory authorities will take the annual rating results as an important basis for evaluating the operating conditions and risk management capacity of foreign banks' Chinese branches, making regulatory plans, allocating regulatory resources, granting market access and implementing classified oversight of the branches.
The measures will be conducive to reasonably allocating regulatory resources, enhancing regulatory capacity and guiding foreign banks to improve risk management, the CBIRC said.