Chairman's StatementAbout the CBRC Ⅰ. Our mandates, objectives & missions Ⅱ. Our philosophy, approach & criteria Ⅲ. Code of conduct Ⅳ. Management Ⅴ. International Advisory Council (IAC) Ⅵ. Organizational structurePart One Economic & Banking Developments Ⅰ. Macroeconomic and financial environment Ⅱ. Latest developments of China's banking sectorPart Two Banking Reform and Development Ⅰ. Reform and transformation of the banking sector Ⅱ. Latest developments in the opening-up of the banking sector Ⅲ. Financial innovation Thematic Column 1: Introduction of privatecapital into the banking sectorPart Three Improvement of Financial Services for Real Economy Ⅰ. Supporting key areas Ⅱ. Enhancing financial services for SMEs Ⅲ.Improving rural financial servicesThematic Column 2: "ThreeMajor Projects" launched Ⅳ. Promoting balanced regional developmentPart Four Prudential Supervision Ⅰ. Corporate governance and internal controls Ⅱ. Capital regulation Thematic Column 3: Capital Rules forCommercial Banks (Provisional) Ⅲ. Credit risk supervision Ⅳ. Liquidity risk supervision Ⅴ. Operational risk supervision Ⅵ. IT risk supervision VⅡ. Market risk supervision VⅢ. Country risk supervision IⅩ. Reputational risk supervision Ⅹ. Credit guarantee activities Ⅺ. Anti-illegal fund-raisingPart Five Improvement of Regulatory Framework and SupervisoryCapacity Ⅰ. Improving legal framework Ⅱ. Supervisory approaches Ⅲ.Supervisory cooperation and coordination Ⅳ. Organizational developmentPart Six Banking Consumer Protection and Education Ⅰ. Development of the banking consumer protection regulatoryframework Ⅱ. Bringing into full play banking institutions' responsibilitieson consumer protection Ⅲ.Consumer protection endeavorsPart Seven Strengthening Transparency and Market Discipline Ⅰ. Enhancing information disclosure Ⅱ. Improving transparency of the banking sector Ⅲ. Strengthening market disciplinePart Eight Social Responsibility Ⅰ. Promoting supervisory guidance Ⅱ. Securing quality financial services during public holidays Ⅲ. Boosting sustainable development of student loan undertakings Ⅳ. Supporting charity and poverty-stricken areas Ⅴ. Helping disaster relief and post-disaster reconstructionPart Nine Outlook Ⅰ. Economic and financial outlook Ⅱ. Supervisory focuses in 2013 Ⅲ. Mid- to long-term plan and outlook of banking supervisionThematic Column 4: The banking sector's "Twelfth Five-Year Plan"Part Ten AppendixesAppendix 1: Responsibility description of the CBRC departments andlocal officesAppendix 2: Financial management activities of the CBRCAppendix 3: Rules and regulatory documents issued in 2012Appendix 4: MOUs and EOLs with overseas regulatorsAppendix 5: Significant regulatory and supervisory events in 2012Appendix 6: TerminologyAppendix 7 StatisticsAppendix 7-1: Total assets of banking institutions (2003-2012)Appendix 7-2: Total liabilities of banking institutions (2003-2012)Appendix 7-3: Total owner's equity of banking institutions(2003-2012)Appendix 7-4: Total deposits and loans of banking institutions(2003-2012)Appendix 7-5: Profit after tax of banking institutions (2007-2012)Appendix 7-6: Returns of banking institutions (2007-2012)Appendix 7-7: NPLs of banking institutions (2010-2012)Appendix 7-8: Liquidity ratio of banking institutions (2007-2012)Appendix 7-9: NPLs, asset impairment provisions and provisioningcoverage ratio of commercial banks (2007-2012)Appendix 7-10: NPLs of commercial banks (2012)Appendix 7-11: Distribution of NPLs of commercial banks by industry(2012)Appendix 7-12: Distribution of NPLs of commercial banks by region(2012)Appendix 7-13: CAR of commercial banks (2010-2012)Appendix 7-14: CBRC on-site examinations (2003-2012)Appendix 7-15: Number of legal entities and staff of bankinginstitutions (As of end-2012)BoxesBox 1: New international standards for banking regulatory regime --the third edition of "Core Principle for Effective BankingSupervision"Box 2: Trust companies contributed to social wealth managementBox 3: Banks accelerated transformation of operational andmanagement patternBox 4: Interest rate liberalizationBox 5: The CBRC launched the international affairs workingmechanism for Chinese banking institutionsBox 6: Further opening-up of mainland China's banking industry toHong Kong and MacauBox 7: Accelerated Cross-Strait banking expansion and strengthenedsupervisory cooperationBox 8: Wealth management productsBox 9: Development of village and township banksBox 10: Banking industry made significant achievements insupporting the development of Xinjiang, Tibet and Northeast ChinaBox 1i: Non-performing loans of commercial banksBox 12: Warding off external risk contagionBox 13: The CBRC established the Banking Information TechnologySupervision DepartmentBox 14: Summary of key on-site examinations in 2012Box 15: Inspection on the five-category loan classificationBox 16: The 10th IAC MeetingBox 17: (Global) Supervisory College for the BOC and the BoCOMBox 18: Cross-border cooperation on foreign bank supervisionBox 19: Implementation of the CPC Central Politburo's "EightProvisions"Box 20: Establishment of the CBRC Banking Consumer ProtectionDepartmentBox 21: Modifying the Administrative Rules on Service Charges ofCommercial BanksChartsChart 1: Total assets and liabilities of banking institutions(2003-2012)Chart 2: Market share (by assets) of banking institutions(2003-2012)Chart 3: Deposits, loans & loan-to-deposit ratio (2003-2012)Chart 4: Number and percentage of banks meeting the CAR requirement(2003-2012)Chart 5: NPL balance and ratio of commercial banks (2007-2012)Chart 6: Asset impairment provisions and provisioning coverageratio of commercial banks (2007-2012)Chart 7: Income structure of banking institutions (2012)Chart 8: Liquidity condition of banking institutions (Dec 2011 toDec 2012)Chart 9: Expenses of the CBRC in 2012TablesTable 1: Foreign banking establishments in China (As of end-2012)Table 2: Foreign bank operations in China (2006-2012)Table 3: Annualized CAR requirements during the transitional period