The China Banking Regulatory Commission (CBRC) solicited public views on Aug. 29 on the Measures for the Regulation and Administration of the Export-Import Bank of China (Draft for Comments) and the Measures for the Regulation and Administration of the Agricultural Development Bank of China (Draft for Comments) it drafted.

These two documents define the Export-Import (EXIM) Bank of China and Agricultural Development Bank of China (AD Bank) as policy-based financial institutions entitled to ply businesses such as syndicated loans in cooperation with commercial banks, but which may not unfairly compete with them.

EXIM Bank and AD Bank must do business subject to their status as supporting entities and their legally-defined business scope, which comprises the two categories of policy-based and self-operated businesses. EXIM Bank may innovate its financial service models, function as a policy-based financial facilitator, improve its inclusive financial services and provide financial services oriented to micro and small enterprises via cooperation with banking institutions. AD Bank must improve and enhance its inclusive financial services in rural areas.

With respect to capital management, these two policy banks must fix their capital adequacy ratios (CAR) -- both consolidated and unconsolidated -- and execute the regulatory orders for their CARs as CBRC determines.

These banks are subject to CBRC's oversight. Both  have been developing fundamentally soundly in recent years, with their assets growing annually and internal management improving step by step, CBRC said. These two are thus an indispensable prop for the economy and society. However, changes in the economic and financial environment are exposing their business structures and risk features to new challenges. To further promote regulatory effectiveness, prevent and control financial risks, and facilitate the safe and stable operation of these two banks, the CBRC regards the formulation of the two referenced documents as a key project supplying the deficiencies in this year's regulatory regime, it concluded.