NFRA solicits public opinions on the Rules on Syndicated Loan Business (for Consultation)
In order to further optimize and improve the management and supervision of syndicated loan business, and promote the sound and healthy development of syndicated loan business, building upon the Guidelines on Syndicated Loan Business(hereinafter referred to as the “Guidelines”), the NFRA formed the Rules on Syndicated Loan Business(for Consultation) (hereinafter referred to as the “Rules”), which is now officially open to the public for consultation.
Since the former CBRC issued the Guidelines in 2011, syndicated loan business has developed steadily and played important role in serving the real economy, supporting big customers and project financing. However, with the changes in the market circumstances, the Guidelines can no longer fully meet the needs of the current development of syndicated loan business. In view of domestic situations and by drawing on international experiences, the NFRA made targeted revisions to the Guidelines and drafted the Rules. The Rules continues the overall structure of the Guidelines and consists of eight chapters and 62 articles, including general provisions, syndicate loan parties, origination and structure of syndicated loans, syndicated loan contracts, syndicated loan management, syndicated loan transfer transactions, supervision and management, and supplementary provisions. Compared with the current Guidelines, the Rules further clarifies the supervision focus, enriches the modes of syndicated loan structure, optimizes the distribution ratio and secondary market transfer rules, standardizes the syndicated loan charges, and puts forward more systematic requirements for syndicated loan management.
The revision of the Guidelines is an important move to improve the loan business management of commercial banks following the principles of being problem-centered, steady and innovative. It can effectively promote commercial banks to strengthen inter-bank cooperation, and effectively prevent and resolve credit risks while providing high-quality financial supply for economic and social development. In the next step, the NFRA will further revise and improve the Rules according to the feedback from all sectors of society, and promulgate and implement the Rules in due course.
Appendix:
Announcement of NFRA on public consultation of Rules on Syndicated Loan Business (for Consultation)
http://www.cbirc.gov.cn/cn/view/pages/ItemDetail.html?docId=1155721&itemId=951
First, please LoginComment After ~