Core Viewpoint - The People's Bank of China (PBOC) has revised the "Non-Bank Payment Institutions Classification Rating Management Measures" to enhance the regulation of non-bank payment institutions and improve differentiated regulatory measures [1][2] Group 1: Regulatory Framework - The revised draft aims to comprehensively evaluate the operational level and risk status of payment institutions, facilitating compliance and enhancing the scientific, precise, and effective nature of regulatory work [1] - The classification rating process is defined as an evaluation conducted by the PBOC and its branches based on daily regulatory information and other relevant data [1] Group 2: Rating Indicators and Methods - The draft specifies the rating indicators, methods, and scoring criteria, with classifications conducted annually, and the PBOC will clarify scoring standards before each rating [1][2] - It outlines five categories and eleven rating results, along with corresponding scoring ranges and standards for special circumstances [2] Group 3: Implementation and Information Sharing - The classification rating applies to payment institutions that have been established for over one year as of the end of the previous natural year [2] - The PBOC and its branches are required to continuously collect various information necessary for classification ratings, including non-site regulatory information, inspection reports, and internal and external audit reports [2] - An information-sharing mechanism is to be established between the PBOC, clearing institutions, and the China Payment and Clearing Association to enhance compliance and risk management [2]

Core Points - The People's Bank of China (PBOC) has issued a notice to revise the "Management Measures for the Classification and Rating of Non-Bank Payment Institutions" to enhance regulatory oversight of non-bank payment institutions [1] - The revision is a necessary step to implement the "Regulations on the Supervision and Administration of Non-Bank Payment Institutions," which was published by the State Council in December 2023 [1] - The revised measures aim to adjust classification rating indicators based on regulatory focus and to strengthen comprehensive supervision of payment institutions [1] Summary by Sections Revision Purpose - The revision of the management measures is to ensure compliance with the newly established regulations and to enhance the effectiveness of regulatory oversight [1] - It emphasizes the need for differentiated regulatory measures for payment institutions [1] Content of the Revised Measures - The revised measures consist of five chapters and twenty-three articles, detailing the definition and principles of classification rating for payment institutions [1] - A classification rating work mechanism will be established, led by the payment settlement department, with participation from technology and anti-money laundering departments [1] Rating Results and Implementation - The measures specify five categories and eleven rating results, along with corresponding scoring ranges and criteria for special circumstances [2] - It outlines the operational status and risk assessment standards for each rating result, as well as the regulatory actions to be taken by the PBOC and its branches [2] - The rating results are intended for internal use by the PBOC and will not be disclosed publicly [2] - The rating process includes self-assessment by payment institutions, initial evaluation by branches, and final review by the head office [2]