Zheng Quan Shi Bao·2025-06-20 18:28Core Viewpoint - The Financial Regulatory Bureau has released the "Measures for Market Risk Management of Commercial Banks," which revises the previous guidelines to clarify the definition of market risk and enhance governance structures and management requirements [1][2]. Group 1: Definition and Scope of Market Risk - The revised measures redefine market risk, excluding interest rate risks related to the banking book, and focus on risks arising from adverse changes in interest rates, exchange rates, stock prices, and commodity prices [1]. - The distinction between trading book market risk and banking book interest rate risk is emphasized, as they are managed by different departments with separate policies and measurement methods [1]. Group 2: Governance Structure and Responsibilities - The measures clarify the responsibilities of the board of directors, supervisory board, and senior management, defining the specific scope and duties of the three lines of defense in market risk management [2]. - Banks are required to enhance market risk management at the group consolidation level [2]. Group 3: Risk Management Requirements - The measures mandate comprehensive management of market risk, detailing requirements for risk identification, measurement, monitoring, control, and reporting [2]. - There is a focus on improving internal model definitions, model management, and stress testing to align with current market risk measurement frameworks and practices [2]. Group 4: Implications for Banks - The revised measures are expected to enhance banks' operational resilience by clarifying the relationship between market risk and banking book interest rate risk, thereby strengthening market risk management awareness and capabilities [2]. - Banks are encouraged to optimize their market risk governance structures and policies, improve risk appetite and limit systems, and enhance data systems and internal controls [2]. - The implementation of the capital management measures is to be closely integrated with market risk management, ensuring effective internal model validation and monitoring [2].