Measures of China Banking Regulatory Commission on On-site Inspection (Trial)

Chapter I General Provisions Article 1 These Measures are formulated in accordance with the Banking Supervision Law of the People's Republic of China, the Insurance Law of People's Republic of China (PRC), the Law of People's Republic of China (PRC) Commercial Bank and other relevant laws and regulations in order to fully implement the decision-making arrangements of the CPC Central Committee and the State Council on financial work, strengthen the supervision and management of the banking and insurance industries, standardize on-site inspections, improve the quality and efficiency of on-site inspections, and promote the healthy development of the industry. Article 2 The term "on-site inspection" as mentioned in these Measures refers to the administrative law enforcement actions of the Bank of China Insurance Regulatory Commission (hereinafter referred to as "China Banking and Insurance Regulatory Commission") and its dispatched offices to supervise and inspect the operation and management of the banking and insurance industries according to law. Article 3 On-site inspection is an important part of the supervision and management of China Banking Regulatory Commission and its dispatched offices. By giving play to the functions of error detection and correction, verification and evaluation guidance, warning and shock, the bank and insurance institutions are urged to implement national macro-policies and regulatory policies, improve their management level, operate steadily according to law, implement the main responsibility of risk prevention and control of bank and insurance institutions, safeguard their own safety and better serve the development of the real economy. Article 4 The China Banking Regulatory Commission and its dispatched offices shall conduct on-site inspections in accordance with the responsibilities, authorities and procedures determined by laws, administrative regulations, rules and normative documents. Article 5 The China Banking Regulatory Commission and its dispatched offices and on-site inspectors (hereinafter referred to as inspectors) shall conduct inspections according to law, enforce the law in a civilized manner, strictly implement the spirit of the eight central regulations, and observe the discipline of confidentiality and honesty. China Banking Regulatory Commission and its dispatched offices shall strengthen the discipline of on-site inspection and the construction of a clean government system, and strengthen the supervision of inspectors' honest performance of their duties. Article 6 The China Banking Regulatory Commission and its dispatched offices shall conduct on-site inspections according to law, and the inspected institutions and their staff members shall cooperate to ensure that the relevant documents and materials provided are true, accurate, complete and timely. If the inspected institution and its staff do not cooperate with the inspection, do not truthfully reflect the situation or refuse or obstruct the inspection, the China Banking Regulatory Commission and its dispatched offices may, according to the seriousness of the case, take regulatory measures and administrative penalties against the relevant institutions and individuals.

During the inspection, the inspected institution shall provide necessary office conditions and job security for the on-site inspection.

Without the consent of the China Banking Regulatory Commission and its dispatched office, the inspected institution and its staff shall not disclose the inspection situation and relevant information. Article 7 On-site inspection as mentioned in these Measures includes daily inspection, temporary inspection and audit investigation.

Routine inspection is included in the annual on-site inspection plan. According to the scope of inspection, it can be divided into comprehensive inspection of risk management and effectiveness of internal control, special inspection of specific business areas or regions, and follow-up inspection of the implementation of major problems found by the inspected institutions in previous on-site inspections.

Temporary inspection is an inspection carried out according to major work arrangements or temporary work tasks outside the annual on-site inspection plan.

Audit investigation is an activity that is suitable for simplifying the on-site inspection process and conducting special investigations on specific matters. Article 8 China Banking Regulatory Commission and its dispatched offices shall establish and improve the on-site inspection management information system, realize the sharing of inspection resources and improve the efficiency of on-site inspection. Article 9 The China Banking Regulatory Commission and its dispatched offices shall work out the budget of on-site inspection projects in strict accordance with the procedures prescribed by laws and regulations, strengthen budget management, and use inspection fees in compliance. Article 10 China Banking Regulatory Commission and its dispatched offices shall be equipped with inspection forces suitable for the inspection tasks, strengthen the training of on-site inspection professionals, establish and improve the directory of random inspection personnel, refine the professional fields of talents, improve the level of on-site inspection, and regard on-site inspection as an important way to train the banking and insurance supervision team and improve the supervision ability. Article 11 The CBRC departments and agencies shall strengthen communication and coordination in on-site inspection and establish an effective linkage mechanism for on-site inspection. Chapter II Division of Duties Article 12 According to the division of supervisory responsibilities, the on-site inspection work of the CBRC and its dispatched offices will be implemented at different levels, and the on-site inspection will be carried out according to the working mechanism of "who initiates the project, who organizes it and who is responsible". Article 13 China Banking Regulatory Commission (hereinafter referred to as CBRC) is responsible for coordinating the on-site inspection of the whole system, organizing on-site inspections of relevant banking and insurance institutions in accordance with the division of regulatory responsibilities, organizing major special inspections, temporary inspections and audit investigations of the whole system, and making overall guidance and assessment on the on-site inspection of dispatched institutions. Article 14 Each dispatched institution shall be responsible for coordinating the on-site inspection work within its jurisdiction, organizing the on-site inspection of banking and insurance institutions within its jurisdiction according to the division of regulatory responsibilities, completing the on-site inspection tasks deployed by the superior institutions, and guiding, assessing and evaluating the on-site inspection work of the subordinate institutions. Article 15 The China Banking Regulatory Commission may, if necessary, directly conduct on-site inspections on institutions supervised by the Banking Insurance Regulatory Bureau, which may directly conduct on-site inspections on institutions supervised by the Banking Insurance Regulatory Bureau. Article 16 The on-site inspection department of China Banking Regulatory Commission and its dispatched offices shall be responsible for the centralized management of on-site inspections.

China Banking Regulatory Commission and its dispatched offices undertake on-site inspections, and all departments are responsible for the formulation and implementation of on-site inspections, proposing rectification suggestions, regulatory measures and administrative penalties, evaluating the rectification of the inspected institutions through interviews, follow-up inspections and audit investigations, and communicating with relevant departments in a timely manner on the on-site inspections.

Other institutional supervision and functional supervision departments of the CBRC and its dispatched offices actively cooperate with the on-site inspection, and are responsible for making suggestions on the on-site inspection, strengthening information sharing, and providing data, materials and related information needed for the on-site inspection.