CBRC: Local financial regulatory authorities can carry out differentiated supervision over financial leasing companies


Following the issuance of interim Measures on Supervision and Administration of Finance Leasing Companies, THE CBRC standardized the off-site supervision of finance leasing companies.On February 15, CBRC issued the Regulations on Off-site Supervision of Financial Leasing Companies (hereinafter referred to as the Regulations), aiming to clarify the division of responsibilities of off-site supervision of financial leasing companies, standardize the procedures, contents, methods and reporting paths of off-site supervision, improve the reporting system of off-site supervision, and improve the quality of off-site supervision.According to statistics, as of the end of September 2021, 667 and 7,019 financial leasing companies have been included in the supervision list and the list of abnormal enterprises and have been publicized to the public respectively. The preliminary classified disposal work has been completed, and the basic conditions for carrying out off-site supervision are available.Off-site supervision refers to the supervision process in which local financial supervision authorities make a timely business evaluation and risk warning and take corresponding measures by collecting relevant statement data, operation management status and other internal and external information of finance leasing companies according to regulatory needs.According to the Regulations, off-site supervision of finance leasing companies includes four stages: information collection and verification, risk monitoring and assessment, information submission and use, and regulatory measures.Generally speaking, branches of financial leasing companies are mainly responsible for business marketing, risk management and control of territorial leased assets, and their income and expenditure and financial management are controlled and controlled by corporate institutions. Most of them do not have independent financial accounting or independent accounting statements, so they cannot fill in relevant off-site supervision data.”Procedures” clear, financial leasing companies across provinces, autonomous regions and municipalities directly under the central government set up the branches and special project company (SPV), its off-site supervision by the financial leasing company legal person institution registered local financial supervision department is responsible for, branches and special project company (SPV) is located cooperate with local financial supervision department.However, it is worth noting that recently, the Regulations on Local Financial Supervision and Administration (Draft for Comments) stipulated that local financial organizations should not, in principle, conduct business across provincial administrative regions, while the Regulations put forward clear requirements on off-site supervision of cross-provincial branch establishment and special project companies of finance leasing companies.Silver insurance regulatory commission, said an official with the relevant departments of the “regulations” has been clear about the financing lease company across provinces, autonomous regions and municipalities directly under the central government set up branches and special project company (SPV) division of off-site regulatory responsibilities and statistical requirements, mainly based on the development of financial leasing companies and stock situation, does not reflect financial leasing companies across the province to carry out the business regulatory guidance.In the next step, CBRC will formulate and improve the relevant business and regulatory rules of finance leasing companies according to the legislative process and relevant requirements of the Local Financial Supervision and Regulation Regulations.According to the regulations, local financial regulatory authorities should pay close attention to external information released by government departments, rating agencies and news media, and urge and guide financial leasing companies to prevent and control related business risks.Information reflecting major changes in the operation and management of a finance leasing company shall be verified in a timely manner and corresponding supervisory measures shall be taken.All local financial regulatory authorities shall strengthen the data examination and verification work, and make use of information technology to examine the integrity of statements, logical relations, abnormal changes and other aspects.In terms of risk monitoring and assessment, local financial regulatory authorities should focus on the changes in the external operating environment, corporate governance, internal control, risk management ability, asset quality and liquidity indicators of finance leasing companies in their off-site supervision.It is clear in the Regulations that all local financial regulatory authorities can query information about financial leasing companies in the basic database of financial credit information and the database of market-oriented credit investigation agencies in accordance with the law, and can also recommend financial leasing companies with stable operation and sound financial status to access the basic database of financial credit information in accordance with the regulations.In terms of regulation, the regulation shows that the local financial regulators can according to the risk severity in differentiation regulation, financial leasing company to improve the information submitted to the frequency and require full risk management power, to the risk of prompt and regulatory reporting, carry out supervision, improve the regulatory measures such as on-site inspection frequency conversation.Attached to the financing lease company off-site regulatory rules in the first chapter the general article 1 in order to clarify the responsibilities of financing lease company off-site supervision division of labor, to standardize the off-site supervision procedures, contents, methods and report path, improve the system of off-site supervision report, improving the quality of the off-site supervision, according to the “interim measures for the supervision and administration of finance leasing company” and other relevant regulations, formulated procedures.Article 2: these procedures, the term “off-site supervision refers to the local financial regulator, as required by regulation, by collecting conditions, operation and management of related data of financial leasing companies and other internal and external data information, such as cross comparison and analysis of information processing, timely make evaluation and risk early warning management, and take corresponding measures to the regulatory process.Article 3 THE CBRC shall be responsible for formulating unified off-site supervision rules and supervision statements for finance leasing companies, urging and guiding various local financial supervision departments to carry out off-site supervision, and strengthening supervision information sharing.Article 4 Each local financial regulatory department shall assume the responsibility of off-site supervision of financial leasing companies and be responsible for off-site supervision of legal persons of local financial leasing companies.The off-site supervision of branches and special project companies (SPVS) established by a finance leasing company across provinces, autonomous regions and municipalities directly under the Central Government shall be undertaken by the local financial regulatory authorities where the legal person of the finance leasing company is registered, and the local financial regulatory authorities where the branches and special project companies (SPVS) are located shall provide cooperation.The regulatory and business indicators of branches and special project companies (SPVS) are calculated by combining them with the corporate bodies of finance leasing companies.Establish a regulatory cooperation mechanism between branches, the location of special project companies (SPV) and the registration place of financial leasing companies’ legal bodies, and share regulatory information about financial leasing companies’ legal bodies, their branches and special project companies (SPV).Article 5 Local financial regulatory authorities shall adhere to the risk-based principle and continuously and comprehensively identify, monitor and evaluate the risk status of local financial leasing companies when conducting off-site supervision.Article 6 When conducting off-site supervision over local financial leasing companies, the local financial supervision department shall take the legal person of the financial leasing company as the main supervision object, follow the principle of legal person supervision, and strengthen the responsibility of legal person.Article 7 Off-site supervision of finance leasing companies includes four stages: information collection and verification, risk monitoring and assessment, information submission and use, and regulatory measures.Article 8 of the second chapter information collection and verify all local financial supervision departments shall supervise direct financing lease company establish and implement the off-site supervision information submitted to the system, in accordance with the relevant silver circ and local financial supervision departments required to submit the data information and the data information, make sure to submit the information true, accurate, timely and complete.Article 9 All local financial regulatory authorities shall require financial leasing companies to establish a major event reporting system and report to the local financial regulatory authorities within 5 working days after the occurrence of the following events: major related party transactions, major pending litigation and arbitration, and other major events that need to be reported as required by the local financial regulatory authorities.Article 10 This Regulation is a unified standard for off-site supervision. Local financial regulatory authorities may, according to the needs of performing their duties, require finance leasing companies to submit documents and materials beyond the provisions of this regulation, and comprehensively collect the operation and risk status of finance leasing companies.Article 11 Local financial regulatory authorities shall pay close attention to external information released by government departments, rating agencies and news media, urge and guide financial leasing companies to prevent and control relevant business risks.Information reflecting major changes in the operation and management of a finance leasing company shall be verified in a timely manner and corresponding supervisory measures shall be taken.Article 12 Local financial supervision and control departments shall strengthen data examination and verification, and make use of information technology means to examine and verify statements from the aspects of completeness, logical relationship, abnormal changes, etc.Article 13 Local financial regulatory authorities shall, according to the needs of continuous supervision, confirm and verify the data quality management and index accuracy of finance leasing companies.Confirmation and confirmation methods include but are not limited to inquiries, interviews, requests for supplementary materials, special assessments, field visits and on-site inspections, etc.Article 14 Local financial supervision and control departments shall collect, classify and sort out the off-site supervision and control materials in accordance with relevant provisions on archives management to ensure their completeness and timely filing.Chapter III Risk Monitoring and Assessment Article 15 All local financial regulatory authorities shall analyze and process all kinds of information and materials submitted by finance leasing companies, and continuously monitor and assess the risks of finance leasing companies.Local financial regulatory authorities shall focus on the changes of external business environment, corporate governance, internal control, risk management ability, asset quality and liquidity indicators of finance leasing companies in their off-site supervision.Article 16 Local financial supervision departments shall intensify supervision and inspection of credit risks and liquidity risks of finance leasing companies.In combination with other regulatory means, the quality and risk of assets of finance leasing companies will be carefully verified, focusing on whether the leased property meets regulatory requirements, whether there is illegal financing, whether non-performing assets are truthfully reflected, and whether the business concentration and correlation degree exceed the standard.Article 17 In case of abnormal changes in supervision indicators of finance leasing companies found in off-site supervision, local financial supervision departments may take measures such as risk reminders, interviews, on-site visits, and requests for rectification, and closely supervise the rectification progress.Article 18 a significant risk in financial leasing companies, emergency, major pending litigation, etc., the local financial supervision and regulation department shall analyze the reason, urged guidance timely financial leasing company, and shall, in accordance with the relevant major risk event report system requirements in a timely manner to the people’s governments at the corresponding level and the local financial supervision department report.Article 19 Local financial regulatory authorities shall, in combination with routine supervision, off-site supervision and on-site inspection, write annual supervision reports, and analyze the changes in off-site supervision data, characteristics of development trends, operation conditions and on-site inspection conditions.The annual supervision report shall include the following contents :(1) the basic situation and major changes of the financial leasing industry within its jurisdiction;(2) The major work carried out in industry supervision this year and the regulatory regulations formulated;(3) The main work carried out this year in promoting the development of the industry;(4) Excellent practices and major achievements in the industry;(5) Existing problems and risks;(6) Violation of regulations and failure to meet standards of the finance leasing company;(7) Arrangements and suggestions for the next step;(8) Other circumstances that require special explanation.Article 20 All local financial supervision and control departments may, in accordance with law, inquire information about financial leasing companies in the basic database of financial credit information and the database of market-oriented credit investigation agencies.Local financial regulatory authorities may recommend financial leasing companies with stable operations and sound financial status to access the basic database of financial credit information in accordance with relevant provisions.Finance leasing companies may cooperate with market-oriented credit investigation agencies in accordance with the principle of commercial cooperation to provide, inquire and use credit information in accordance with law.Chapter IV Information Submission and Use Article 21 The local financial regulatory bureaus of the provinces, autonomous regions and municipalities directly under the Central Government shall submit to the CIRC statements and reports that are collected and summarized as required by this regulation through the six types of institutional regulatory information systems.The annual statements (appendix 1-5) collected by the local financial regulatory authorities of all provinces, autonomous regions and municipalities shall be submitted to THE CBRC before March 31 of the next year, and the quarterly statements (Appendix 6) shall be submitted to the CBRC before May 5, August 5, November 5 and February 5 of the next year respectively.The annual regulatory report shall be submitted to the people’s government at the corresponding level and the CBRC before April 10 of the next year.Article 22 the local financial supervision and regulation department shall establish off-site supervision and spot checks of the linkage supervision mechanism, the off-site supervision evaluation results as an important reference, on-site inspection, classification regulation timely corresponding regulation measures, direct financing lease company to raise the level of risk management, practical and guard against risk.Chapter V Regulatory Measures Article 23 Local financial regulatory authorities may carry out differentiated supervision according to the severity of risks of finance leasing companies, and take regulatory measures such as improving the frequency of information reporting, requiring the strengthening of risk management forces, giving risk hints and regulatory notices, conducting regulatory talks, and improving the frequency of on-site inspections.Local financial regulatory authorities shall carry out special inspections of key institutions, key fields and key regions with prominent risks, strictly prevent major risks and hidden dangers, urge the company to rectify within a specified time limit according to the inspection results, and take corresponding measures in accordance with laws, regulations and regulatory provisions.Article 24 If a finance leasing company fails to submit documents and materials such as data information, non-data information and rectification plan as required, the local financial supervision and control department may take corresponding measures in accordance with laws, regulations and regulatory provisions according to the seriousness of the case.Chapter VI Supplementary Provisions Article 25 Local financial supervision bureaus of provinces, autonomous regions and municipalities directly under the Central Government may formulate implementation rules for off-site supervision of finance leasing companies in accordance with this Regulation.Article 26 The CBRC shall be responsible for the revision and interpretation of this Regulation.Article 27 This Regulation shall come into force as of the date of issuance. After its implementation, monthly Information Form of Finance Leasing Companies shall not be submitted as Appendix 6 in Letter of General Office of CBRC on Strengthening Supervision Contact and Situation Report of Six Types of Institutions including Small-amount Loan Companies (Memo of CBRC No. 2018) 1952.(This article is from thepaper.cn. For more original news, please download thepaper.cn APP.)

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