CBIRC Improves the Regulatory Rating System of Foreign Bank Branches

The China Banking and Insurance Regulatory Commission (“CBIRC”) released the Measures for the Integrated Regulatory Rating of Foreign Bank Branches (for Trial Implementation) (“Measures”) on November 30, 2022.

The Measures stipulates the basic definitions, scope of application, main principles and factors of the rating of foreign bank branches. It clarifies that the integrated regulatory rating of foreign bank branches includes the rating of core factors and the strength of support assessment (“SOSA”). The rating results are based on the core factor rating results, and the SOSA is used as an adjustment item. It also regulates the rating procedures and provides a guidance for the application of the rating results.