Dubai Financial Services, CBRC sign deal

posted on 17/05/2012: 680 views

The Dubai Financial Services Authority (DFSA), entered into a supplementary agreement on co-operation with the China Banking Regulatory Commission (CBRC). The agreement was signed by Paul M Koster, Chief Executive Officer, DFSA and Shang Fulin, Chairman, CBRC.

The signing took place during a meeting between the Shang Fulin and the Chairman of the Board of Directors of the DFSA, Saeb Eigner, and coincided with a visit to Beijing by a DFSA delegation attending the 2012 Annual Conference of the International Organisation of Securities Commissions.

The delegation included DFSA Board Member, Robert Owen and the Chief Executive designate, Ian Johnston.

The CBRC supervises all banks and non-bank financial institutions, including foreign and foreign invested financial institutions and offices, with the aim of safeguarding legitimate and sound functioning of the banking industry in the People's Republic of China.

Koster said: "This initiative confirms a close and effective relationship between our two authorities. It grew from the response to the global financial crisis by the Basel Committee on Banking Supervision, which issued specific guidelines to enhance cross-border co-operation on crisis management. As active participants in the work of the Basel Committee, the CBRC and DFSA have entered into this agreement conscious of the need to implement international best practice and the commitment to ensure efficient and effective supervision of banks we both supervise.”

Saeb Eigner, Chairman of the Dubai Financial Services Authority's Board of Directors said: "I am very pleased that the CBRC and the DFSA have, with this supplementary agreement, enhanced the terms of the Memorandum of Understanding we put in place on Sept.24, 2007. "Together with the existing MoU, today's agreement reflects each agency's commitment to co-operation in relation to prudential oversight and inspections in all situations and should ensure continued supervisory confidence as a number of significant banks from the People's Republic of China enter the Dubai International Financial Centre,” he added.

The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free-zone in Dubai. The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.

The China Banking Regulatory Commission (CBRC) was first established in March 2003. It now has a network of offices in all major cities in China. Its functions include the formulation of supervisory rules and regulations governing the banking institutions; authorising the establishment, changes, termination and business scope of the banking institutions etc.

The CBRC is also responsible for the administration of the supervisory boards of the major state-owned banking institutions. – The Gulf Today

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