The supervisory focuses of the CBRC
Conduct consolidated supervision to assess, monitor and mitigate the overall risks of each banking institution as a legal entity;
必须坚持法人监管,重视对每个金融机构总体风险的把握、防范和化解;
Stay focused on risk-based supervision and improvement of supervisory process and methods; 必须坚持以风险为主的监管内容,努力提高金融监管的水平,改进监管的方法和手段; Urge banks to put in place and maintain a system of internal controls: 必须注意促进金融机构风险内控机制形成和内控效果的不断提高:
enhance supervisory transparency in line with international standards and practices?? 必须按照国际准则和要求,逐步提高监管的透明度
The regulatory objectives of the CBRC银监会监管的工作目的
a. Protect the interests of depositors and consumers through prudential and effective supervision;通过审慎有效的监管,保护广大存款人和消费者的利益
b. Maintain market confidence through prudential and effective supervision;通过审慎有效的监管,增进市场信心
c. Enhance public knowledge of modern finance though customer education and information disclosure;通过宣传教育工作和相关信息披露，增进公众对现代金融的了解 d. Combat financial crimes.努力减少金融犯罪
The supervisory and regulatory criteria of the CBRC 银监会的监管标准
b. Promote the financial stability and facilitate financial innovation at the same time;良好监管要促进金融稳定和金融创新共同发展
b. Enhance the international competitiveness of the Chinese banking sector;要努力提升我国金融业在国际金融服务中的竞争力;
c. Set appropriate supervisory and regulatory boundaries and refrain from unnecessary controls;对各类监管设限要科学、合理,有所为,有所不为,减少一切不必要的限制 d. Encourage fair and orderly competition;鼓励公平竞争、反对无序竞争
e. Clearly define the accountability of both the supervisor and the supervised institutions; 对监管者和被监管者都要实施严格、明确的问责制
f. Employ supervisory resources in an efficient and cost-effective manner.要高效节约地使用 一切监管资源
金融词汇：
审慎经营规则 prudential management rule 风险集中 risk concentration 资产流动性 liquidity of asset 损失准备金 loss reserve 存款人 depositor
银行业金融机构 banking institution 现场检查 on-site examination 非现场监管 off-site surveillance 监事会 supervisory boards
风险监管 risk-based supervision 内部控制 a system of internal controls
审慎有效的监管 prudential and effective supervision 信息披露 information disclosure 金融犯罪 financial crisis 民间借贷 private lending 影子银行 shadow banking 敏感性分析 sensitivity analysis 压力测试 stress testing
情景分析 scenario analysis
关键风险指标 key risk indicators，KRIs 间接融资 indirect financing
巴塞尔委员会 the Basel Committee 巴塞尔协议III Basel III
资本充足率 capital adequacy ratio 杠杆率 leverage ration 流动性 liquidity
贷款损失准备 loan loss provisions 系统性风险 system risk
逆周期宏观审慎监管要求 countercyclical macroprudential regulatory requirements 政策性银行 policy bank
国有商业银行 State-owned commercial bank 股份制银行 joint stock commercial bank
中国邮政储蓄银行 the Postal Savings Bank of China 信托公司 tthe trust companies,
企业集团财务公司 enterprise group finance companies 金融租赁公司 financial leasing companies 国际活跃银行 internationally active banks
系统性重要银行 systemically important banks 基础货币 monetary base
存款准备金率 deposit reserve ratio 再贴现再贷款 rediscount rate
公开市场操作 open market operations 优惠利率 preferential interest rate 窗口指导 window guidance 道义劝告 moral suasion
违规概率 PD，probability of default 违规损失率 LGD，loss given default
违约风险暴露 EAD， exposure at default 期限 maturity
《第三版巴塞尔协议》确立了微观审慎和宏观审慎相结合的金融监管新模式，大幅度提高了商业银行资本
监管要求，建立全球一致的流动性监管量化标准，将对商业银行经营模式、银行体系稳健性乃至宏观经济运行产生深远影响。
Basel III has established a new financial regulatory model with combination of micro-prudence and macro-prudence., which greatly increased the capital regulatory requirements for commercial banks, and to establish globally consistent quantitative standards for liquidity supervision will have profound impacts on the business model of commercial banks, stability of the banking system and even the macroeconomic operation.
推动中国银行业实施国际新监管标准，增强银行体系稳健性和国内银行的国际竞争力
push forward China's banking sector's implementation of the new international regulatory standards, enhance the stability of the banking system and the international competitiveness of domestic banks
借鉴国际金融监管改革成果，根据国内银行业改革发展和监管实际，构建面向未来、符合国情、与国际标准接轨的银行业监管框架，推动银行业贯彻落实“十二五”规划纲要，进一步深化改革，转变发展方式，提高发展质量，增强银行业稳健性和竞争力，支持国民经济稳健平衡可持续增长。
We shall draw on international achievements in the reform of financial supervision, establish a regulatory framework for the banking sector which faces the future, complies with national conditions and meets international standards according to the reform and development as well as regulatory actualities of China's banking sector, push forward the banking sector's implementation f the outlines of the “Twelfth Five-year Plan”, further deepen the reform, transform the development pattern, improve the quality of development, and enhance the stability and competitiveness of the banking sector to support the stable, balanced and sustainable growth of the national economy.
宏观审慎监管与微观审慎监管有机结合。统筹考虑我国经济周期及金融市场发展变化趋势，科学设计资本充足率、杠杆率、流动性、贷款损失准备等监管标准并合理确定监管要求，体现逆周期宏观审慎监管要求，充分反映银行业金融机构面临的单体风险和系统性风险
Dynamic combination of macroprudential regulation and microprudential regulation. We shall take into overall consideration China's economic cycles and trends in developments and changes in the financial market, scientifically set capital adequacy ratio, leverage ratio, liquidity, loan loss provisions and other regulatory standards, and reasonably determine regulatory requirements, which reflect countercyclical macroprudential regulatory requirements and fully reflect single risks and system risks the banking financial institutions are facing.
支持经济持续增长和维护银行体系稳健统筹兼顾。银行体系是我国融资体系的主渠道，过渡期内监管部门将密切监控新监管标准对银行业金融机构的微观影响和对实体经济运行的宏观效应，全面评估成本与收益，并加强与相关部门的政策协调，避免新监管标准实施对信贷供给及经济发展可能造成的负面影响
Taking into consideration both supporting the continuous economic growth and maintaining the stability of the banking system. The banking system is the main channel of China's financing system. During the transition period, regulatory authorities shall closely monitor the new regulatory standards' micro-impacts on banking financial institutions and their macro-effects on the real economy, comprehensively assess costs and earnings, and strengthen coordination with
the relevant departments in respect of policies to avoid negative impacts that may be caused by the implementation of the new regulatory standards on the supply of credit and economic development.
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the Consumer Price Index) over time. Inflation has positive effect and negative effect.
The positive effects include ensuring central banks can adjust nominal interest rates (intended to mitigate recessions), and encouraging investment in non-monetary capital projects.
The negative effects of inflation can be concluded as follow. First of all, inflation lead to the loss of saving accounts and investment because of reduced values in currency. Thus, it transfer wealth from the creditor to the debtor. Secondly, inflation makes daily living harder. As money loses value, so do wages, pensions and investment. The prices goes up, we can buy fewer goods than before. Last but not least, inflation increase the uncertainty about the future thus discourage the investment.
Fighting inflation has been the main traditional goal of monetary policy.
Interest Rates
Keeping interest rates stable is a important goal of monetary policy. A balance must be struck between the desire of investors to see a large return on investment with higher interest rates with borrowers who want low interest rates on loans. Striking a balance between these two interests is important for monetary policy because both promote economic growth, savings and investment.
Balance of Payments
If a specific currency gains in value relative to its neighbors, goods from that country, when sold abroad, will be more expensive. As the value of the currency falls, the competitiveness of goods from that economy become more competitive abroad. Again, a balance must be maintained between these two poles: a strong currency that speaks to low inflation at home, and a weak currency that might boost international sales. As a specific currency falls in value, the debts incurred in that currency also fall in value. Therefore, a currency that is too strong might make international debts that much higher.
Monetary policy differs from fiscal policy, which refers to taxation, government spending, and associated borrowing.