The expected credit loss law of commercial banks will be implemented at the latest next year: no adjustment of profits, financial indicators

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 Titan Media app reported on May 19 that while encouraging large banks with high provision levels and other high-quality listed banks to reduce provision coverage in an orderly manner, the China Banking and Insurance Regulatory Commission issued the “Management of the Implementation of the Expected Credit Loss Law of Commercial Banks” on May 16. Measures", proposing that commercial banks shall not implement the expected credit loss method to adjust profits, adjust financial indicators and regulatory indicators, and avoid regulatory requirements. The "Measures" will come into force on the date of promulgation, and it is stated that commercial banks have great difficulties in implementing the measures, and may apply to the China Banking and Insurance Regulatory Commission or local dispatched offices for extension of implementation, but they will be implemented no later than January 1, 2023. ; Applicable institutions include commercial banks legally established within the territory of the People's Republic of China, including Chinese-funded commercial banks, wholly foreign-owned banks and Sino-foreign joint venture banks, and other financial institutions (including village and township banks) approved by the China Banking and Insurance Regulatory Commission and its dispatched offices. (Source: 21st Century Business Herald)

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