* China bank regulator implements global rules pushed by G20
* All banks above 1.6 trillion yuan in assets must disclose
* Twelve indicators track size, connectedness, complexity
* New window into off-balance-sheet exposures
SHANGHAI, Jan 8 China's bank regulator will
require the country's largest lenders to disclose their
off-balance-sheet exposures and other indicators in a move to
implement global rules designed to strengthen regulation of
"In recent years, the scale, interconnectedness, and
complexity of Chinese banks has continuously increased, and it
is necessary to implement higher standards for banks whose
degree of systemic importance is relatively large," the China
Banking Regulatory Commission (CBRC) said in a statement on its
website on Wednesday.
In 2011 the Financial Stability Board, the international
body established by the G20 to coordinate financial regulation
among member countries, published its first list of systemically
important financial institutions (SIFI) and required them to
publish key indicators designed to gauge systemic importance.
The latest guidance from the CBRC implements these global
rules by requiring Chinese banks that the FSB has designated as
systemically important -- as well as all other banks with on-
and off-balance sheet assets worth at least 1.6 trillion yuan
($264 billion) -- to disclose key indicators.
These banks will be required to disclose 12 indicators that
track size, interconnectedness, complexity and other factors.
The indicators include the scale of on- and
off-balance-sheet assets; claims on and liabilities to other
financial institutions; nominal value of outstanding
over-the-counter derivatives; assets held for both trading and
available for sale; and cross-border assets and liabilities.
The FSB's latest list of SIFIs, published in November 2013,
included China's first and fourth largest banks, Industrial and
Commercial Bank of China and Bank of China
But all other mainland or dual-listed Chinese banks -- with
the exception of Bank of Ningbo and Bank of Nanjing
-- also have assets of at least 1.6 trillion yuan,
based on their latest financial statements.
While many of the required disclosures are already included
in these banks' regular disclosures to shareholders, others,
such as off-balance-sheet assets, were previously not required.
The disclosures could provide a new window into the opaque
world of shadow banking, which has grown rapidly in recent
years. Commercial banks have rapidly expanded off-balance-sheet
lending funded by the sale of wealth management products, which
they market to customers as a higher-yielding alternative to
traditional bank deposits.
Reuters reported earlier this week that the State Council,
China's cabinet, had issued new policies to strengthen
regulation of off-balance-sheet lending in an effort to contain
the risk of a debt crisis.
The CBRC said that the banks should make the disclosures on
their websites or in their annual financial statements within
four months of the end of their accounting year or no later than
July 31 each year.