PBOC solicits public opinions on "Interbank Certificate of Deposit Management Measures"

On June 26, the People's Bank of China issued a notice on the public consultation on the "Interbank Deposit Certificate Management Measures." In order to further regulate and guide the development of the interbank deposit certificate market, strengthen financial supervision, the People's Bank of China revised the "Interbank Deposit Certificate Management Provisional Measures" (People's Bank of China Announcement No. 20 of 2013) and People's Bank of China Announcement No. 12 of 2017, forming the "Interbank Deposit Certificate Management Measures," and is now seeking public opinions on it. The measures consist of 22 articles, specifying the scope of interbank deposit certificate issuers and investors, certificate elements, issuance preparation, issuance and trading, registration custody and redemption, information disclosure, and supervision and management. The main revisions include: 1. Clarification of supervision requirements and measures. This includes the dynamic adjustment of annual filing quotas by the People's Bank of China based on macro-prudential management requirements, issuer monetary policy execution, financial market prudent investment and trading conditions, and interest rate pricing self-discipline status. Issuers must include key financial information in their issuance plan to improve transparency. Non-compliance with information disclosure and issuance transaction clauses may result in penalties in accordance with the law. 2. Meeting the practical needs of the interbank deposit certificate market. This includes clarifying the scope of interbank deposit certificate investors to include national interbank bond market qualified investors and financial institutions engaged in bond investment through counter services. Temporary quota mechanisms will be implemented to ensure smooth issuance. Foreign currency interbank deposits will also be included in the measures to conform to balance management methods. 3. Leaving policy space for future interbank deposit certificate innovations. This involves adjusting trading methods and terms to accommodate potential new issuance methods and terms. The inquiry process for interbank deposit certificates will be regulated through electronic platforms to improve efficiency and transparency. Additionally, deposit financial institution bond repurchase rates (DR) or other recognized rates will be used as pricing references to enrich pricing indicators. The notice also provides information on how the public can submit feedback and the deadline for submissions. It states that the measures will come into effect on a specified date, and it also specifies the repeal of previous announcements on the management of interbank deposit certificates. This text is adapted from the official website of the People's Bank of China, translated by GMTEight.