NFRA Revises and Issues the Administrative Measures for Capital Margin of Insurance Companies

Recently, the National Financial Regulatory Administration (NFRA) has issued the revised Administrative Measures for Capital Margin of Insurance Companies (the "Measures"), with effect on the date of issuance.

Compared with the previous version, the main revisions of the Measures include: (1) Removal of bank type restrictions: all types of commercial banks are now eligible to serve as deposit banks for capital margins. (2) Optimization of deposit bank requirements: This includes raising the minimum net asset scale requirement for deposit banks and strengthening prudential regulatory indicators. (3) Improvement of capital margin deposit forms: Large-denomination certificates of deposit (CDs) have been added as a permitted form, and "large-denomination negotiated deposits" have been adjusted to "negotiated deposits." (4) Enhancement of capital margin regulatory requirements: New rules require renewal or transfer of capital margin upon maturity, as well as higher minimum amounts for individual capital margin deposits. (5) Adjustment of reporting mechanism: The post-event filing requirement for capital margin disposal has been changed to a post-event reporting requirement.



(Source: https://www.nfra.gov.cn/cn/view/pages/governmentDetail.html?docId=1224677&itemId=861&generaltype=1)

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