Latest Revision of Risk Control Indicators for Securities Companies Aims to Enhance Risk Management and Promote Development
On November 3, the “Standard Regulations for Calculation of Risk Control Indicators of Securities Companies” underwent its latest revision, attracting significant attention from the industry. The revision aims to improve the scientificity, effectiveness, and guidance of risk control indicators and promote securities companies to enhance their services to the real economy and residents’ wealth management. It also aims to strengthen comprehensive risk management and ensure strict supervision to avoid major risk events.
The revision will bring profound changes to the industry and will have different impacts on various businesses. According to interviews with industry experts and researchers, securities businesses that serve the real economy and residents’ wealth management are expected to develop more steadily under the new regulations. On the other hand, businesses will face stronger constraints, particularly in terms of capital requirements.
The revised regulations reflect the orientation of strict supervision and aim to prevent systemic risks. They will help high-quality securities companies open up capital space, improve capital utilization efficiency, and enhance their investment banking service capabilities. This will ultimately contribute to the stability and development of the financial market.
The recent revision includes core changes to the risk control indicators. For example, the capital leverage ratio for AA-rated securities companies has been discounted by 30% for three consecutive years. The net stable funding rate has also been optimized, and the risk coverage ratio and liquidity coverage ratio have been improved. The revision allows for the adoption of advanced risk measurement methods, such as the internal model method, to calculate risk capital reserves.
The revision also focuses on market-making activities and investment in standardized stocks, bonds, and other asset management plans. It introduces preferential factors for market-making businesses and adjusts the risk capital reserves for asset management plans in standardized assets.
Moreover, the revision releases the capital space of high-quality securities companies and improves capital utilization efficiency. It adjusts the risk capital reserves and total assets calculation for securities firms with excellent classification evaluations. This adjustment aims to encourage cooperation with well-regulated securities companies and strengthen their role in serving the real economy and maintaining financial stability.
Additionally, the revision highlights risk management and enhances the effectiveness and adaptability of risk control indicators. It further improves the calculation standards and stabilizes the required funds for assets.
Overall, the latest revision of risk control indicators for securities companies aims to enhance risk management, promote the development of securities firms, and improve their services to the real economy and residents’ wealth management. It provides a clear and specific guiding effect and contributes to the high-quality development of the industry.