China’s National Financial Regulatory Administration has published interim measures establishing a foundational supervisory framework for commercial banks’ custody business, aiming to standardise market practices and strengthen risk management as custody activity expands and custody assets diversify. The measures set out the definition of commercial bank custody business and the basic principles for conducting it, and specify the requirements banks must meet to provide custody services. They require banks to build sound governance arrangements and management systems for custody activities and to provide custody services that match their capabilities and service levels. The framework also strengthens ongoing supervisory tools, enforcement and penalties, regulatory data reporting, and self-regulatory arrangements, and is intended to clarify the scope and operating norms of custody business while supporting areas such as asset management. The authority indicated it will continue to press commercial banks to improve operational management and risk prevention capabilities to promote orderly and high-quality development of custody business.
China Banking and Insurance Regulatory Commission 2025-12-12
China's National Financial Regulatory Administration issues interim supervision rules for commercial banks’ custody business
China’s National Financial Regulatory Administration has issued interim measures to establish a supervisory framework for commercial banks' custody business, aiming to standardize practices and enhance risk management. The measures define custody business, set governance and management requirements, and strengthen supervisory tools and enforcement. The framework seeks to clarify operating norms, support asset management, and promote improved operational management and risk prevention.