Laws, Policies, & Guidelines

Guidelines on Regulating the Banking Industry in Serving Enterprises’ Overseas Development and Strengthening Risk Control

Scope of Application

Guidelines for Chinese financiers operating overseas.

Purpose

Offers specific guidance to standardize and improve environmental and social risk management throughout the project life cycle, especially in BRI host countries.

General Key Points

Financiers should:

  • Abide by relevant Chinese laws and overseas project management regulations. 
  • Meet Chinese and host country regulators' reporting requirements on institutions, system and data security, anti–money laundering, and companies' information.
  • Learn about environmental and social risk management from the “Equator Principles” and international best practices.
  • Abide by local laws and regulations on environmental protection and relevant industries.
Key Points on Stakeholder Engagement

Financiers should:

  • Maintain the rights and interests of local people.
  • Urge companies to safeguard the legitimate rights and interests of workers.
  • Increase employment and educational opportunities for local people during project implementation and operations.
  • Respect local culture, religion, and social customs.
  • Respond to the reasonable demands of the people, civil society organizations (CSOs)/nongovernmental organizations (NGOs), and other stakeholders during project implementation and operations.
  • Disclose information related to environmental and social risks, and actively strengthen relationships with relevant stakeholders.
  • Strengthen communication with the Ministry of Commerce (MOFCOM), the National Development and Reform Commission (NDRC), and Chinese Embassies and Consulates.
  • Allow third-party organizations to investigate financiers' compliance with local regulations and environmental protection requirements.
Key Points on Environmental and Social Impact Assessment

Financiers should: 

  • Conduct and strengthen due diligence and risk assessments by analyzing the economic, legal, political, and social environment of project areas.
  • Fully assess projects' environmental and social risks for project access, ratings, and management.
  • Strengthen environmental and social risk monitoring.
  • Continuously improve their risk management capabilities.
Applies to
Global
Date
January 2017
Issuer(s)
China Banking Regulatory Commission (CBRC) and China Insurance Regulatory Commission (CIRC) (now China Banking and Insurance Regulatory Commission (CBIRC))
Link to Full Version(s)

English

Chinese

Links to Relevant Laws, Policies, & Guidelines

The Equator Principles