China's National Financial Regulatory Administration has revised and issued updated measures governing insurance companies’ capital guarantee funds, recalibrating both the criteria for banks that can hold these funds and the supervisory process for insurers’ subsequent handling of them. The updated framework raises the net asset threshold for eligible depository banks, removes restrictions on the types of banks that may act as depositories, and tightens prudential expectations by requiring sound internal controls and risk management systems. The revision also reflects the Mainland’s services trade arrangements with Hong Kong and Macao, which allow Hong Kong- and Macao-funded banks to serve as depository banks for mainland insurers’ capital guarantee funds. For disposal of capital guarantee funds, the measures shift from an ex post filing mechanism to an ex post reporting regime and streamline required documentation, while placing explicit responsibility on insurers for the authenticity, accuracy, and completeness of submissions and providing for supervisory measures or penalties for non-compliance.
China Banking and Insurance Regulatory Commission 2025-09-05
China's National Financial Regulatory Administration revises measures on insurers’ capital guarantee funds and depository bank requirements
China's National Financial Regulatory Administration updated measures for insurance companies' capital guarantee funds, adjusting criteria for depository banks and enhancing supervision. The framework raises the net asset threshold, removes bank type restrictions, and requires robust internal controls. It aligns with trade arrangements with Hong Kong and Macao, allowing their banks as depositories, and shifts to an ex post reporting regime with stricter documentation and compliance requirements.