In remarks at a seminar on the challenges and responses of modern international financial regulation, the China Banking and Insurance Regulatory Commission argued that progress toward cross-border equivalence has been meaningful but that the international framework is showing structural fractures. It called for a two-layer approach combining strict adherence to core standards such as capital adequacy and liquidity with room for “adaptive” national adjustments, while avoiding a regulatory race to the bottom. The speech highlighted several areas for supervisory focus. On implementation consistency, it cited a Basel Committee on Banking Supervision monitoring report indicating that deviations in the implementation of Basel III Pillar 3 disclosure requirements have reached a post-reform record. On countercyclical regulation, it referenced the Basel III countercyclical capital buffer range of 0–2.5% and noted that few jurisdictions have applied broad, system-wide countercyclical measures, with more common use targeted at individual institutions; it proposed assessing sustainability of business models, incentives and performance frameworks, and the adequacy and真实性 of preventive capital and provisioning buffers. On risk governance, it emphasised building internal risk-control “three lines of defence” through governance checks and balances (including firewalls between controlling shareholders and senior management), front/middle/back-office separation, and stronger market discipline via disclosure. For non-bank financial institutions, it pointed to Financial Stability Board data showing global non-bank financial assets above USD 256 trillion at end-2024, representing 51% of global financial assets and growing 9.4% year on year, alongside private credit exceeding USD 2 trillion, and argued for a more systematic, enforceable regulatory framework with clearly defined supervisory responsibility, scope and tools. It also flagged operational resilience challenges linked to digital and crypto assets, artificial intelligence-driven change, concentration risks from outsourcing to a small number of large providers, and non-traditional threats such as cyberattacks and climate risks.
China Banking and Insurance Regulatory Commission 2026-04-13
China Banking and Insurance Regulatory Commission outlines five priorities for modern international financial regulation at seminar
The China Banking and Insurance Regulatory Commission, in a speech on modern international financial regulation, warned of structural fractures in the global framework and advocated a two-layer approach combining strict adherence to core standards with room for adaptive national adjustments. It highlighted concerns over inconsistent Basel III Pillar 3 implementation, limited use of system-wide countercyclical capital buffers, and weaknesses in risk governance, and called for stronger “three lines of defence” and market discipline. The Commission also urged more systematic, enforceable oversight of rapidly growing non-bank financial institutions and enhanced operational resilience to digital, crypto, artificial intelligence, outsourcing, cyber and climate-related risks.