Zheng Quan Shi Bao·2025-07-03 01:55Core Viewpoint - The Financial Regulatory Bureau has released the "Measures for Market Risk Management of Commercial Banks," which refines the definition of market risk and emphasizes the need for improved governance and management practices in banks [1][2]. Group 1: Definition and Scope of Market Risk - The new 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 highlighted, indicating that they are managed by different teams and require different 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]. - There is an emphasis on enhancing market risk management at the group consolidation level [2]. Group 3: Risk Management Requirements - Banks are required to implement full-process management of market risk, detailing requirements for risk identification, measurement, monitoring, control, and reporting [2]. - The measures call for improvements in internal model definitions, model management, and stress testing to align with current market risk measurement frameworks and practices [2]. Group 4: Benefits of the New Measures - The new 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]. - They will also facilitate the optimization of 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 will be closely integrated with market risk management, ensuring effective internal model validation and monitoring [2].