Beyond COVID-19: Crisis response or road to recovery?
Crisis response or road to recovery?
Yesterday November 28, the China Banking and Insurance Regulatory Commission (CBIRC) published the draft amendments to the Detailed Rules for the Implementation of the Regulation on the Administration of Foreign-Funded Banks to complement another draft amendments to the Regulation on the Administration of Foreign-Funded Banks published a few days earlier (together, the Draft FIE Bank Rules). The Draft FIE Bank Rules are subject to public consultation for a period of one month and are expected to be released formally at the beginning of 2019.
The Draft FIE Bank Rules for the first time show how the principles of “national treatment” and “same market entry and administrative standards” in banking sector as announced by CBIRC are elaborated by legislations. A few significant movements are notable to the foreign banks who have already opened wholly-owned subsidiary banks and/or branches in China, especially the following:
Meanwhile, foreign banks who hold both FIE Banks and branches in China are required to ensure:
Other amendments include reporting requirements for conducting derivative business and some other business, approval requirements for conducting Reminbi business, various thresholds for regulatory asset/debt ratios, regular review and inspection requirements and so on.
Although the implementation of the new rules, if published, is still subject to test, at least these Draft FIE Bank Rules demonstrate the commitment made by Chinese government to further open the banking sector to foreign investment and the efforts made by CBIRC to apply the consistent requirements to domestically-funded banks and foreign-funded banks.
As the global aviation industry looks towards post-pandemic recovery and less turbulent skies, it is the topic of decarbonisation that is increasingly top of everyone’s agenda. There have been a number of eye-catching announcements around the world in recent weeks, from United Airlines announcing its intention to purchase 100 electric aircraft, an increased focus on the use of sustainable aviation fuel (SAF) from several airlines, and Korean Air utilising the green bond markets.
© Norton Rose Fulbright LLP 2021