Title: Analysis of the Main Changes and Implications of Capital Rules for Commercial Banks (Draft for Comments)

On February 18，2023，the former China Banking and Insurance Regulatory Commission (now the National Administration of Financial Regulation) and the People's Bank of China (PBC) issued Capital Rules for Commercial Banks (Draft for Comments) (hereinafter referred to as the new Capital Rules)，which is scheduled to be officially implemented on January 1，2024. The new Capital Rules represent the first major revision of China's capital rules for commercial banks in the past decade. It incorporates and adopts the Basel Committee's final reform proposals for Basel III，which were released in December 2017，and makes appropriate adjustments based on China's national conditions. This is expected to help banks improve their risk management capabilities and enhance the quality and efficiency of their services to the real economy.

Main Changes in the New Capital Rules

Under the first pillar，implement differentiated supervision according to local conditions.