CBIRC Urges Commercial Banks to Strengthen Risk Management of OBS Activities

On December 2, 2022, the China Banking and Insurance Regulatory Commission (“CBIRC”) released the revised Measures for Commercial Banks to Manage Risks of Off-Balance Sheet (“OBS”) Activities, to be effective on January 1, 2023.

The Measures clarified the definitions and classification of OBS activities of commercial banks, introduced the governance framework of OBS activities, and detailed and defined the requirements for the management of risks in OBS activities, stipulating that commercial banks shall incorporate OBS activities into the comprehensive risk management system to accurately identify different types of risks in OBS activities and impose differentiated management depending on the types of activities and risk characteristics. It also presented the information disclosure requirements and specified the requirements for the supervision and administration.