中国银行业监督管理委员会令2004年第10号

颁布日期：20041229 　实施日期：20050301 　颁布单位：中国银行业监督管理委员会

（Promulgated by the China Banking Regulatory Commission on 29 December 2004 and effective as of 1 March 2005.）

PART ONE　GENERAL PROVISIONS

Article 1　These Guidelines have been formulated in accordance with the PRC， Banking Regulation Law， the PRC， Commercial Banking Law and other relevant laws and administrative regulations in order to strengthen the management of market risks by commercial banks.

Article 2　For the purposes of these Guidelines， the term “commercial banks” shall refer to commercial banks established in the People‘s Republic of China according to law， including Chinese-funded commercial banks， wholly foreign-owned banks and Sino-foreign joint venture banks.

Article 3　For the purposes of these Guidelines， the term “market risks” shall refer to the risks of incurring loss in the on- and off-balance-sheet businesses of banks as a result of adverse change in market prices （interest rates， exchange rates， share prices and commodity prices）。 Market risks exist in trading and non-trading businesses of banks.

Market risks may be divided into interest rate risks， exchange rate risks （including gold）， share price risks and commodity price risks， which refer to， respectively， the risks created by any adverse change in interest rates， exchange rates， share prices and commodity prices. Depending on the source of risks， interest rate risks may be divided into repricing risks， yield curve risks， basis risks and optionality risks.

For the purposes of the preceding paragraph， the term “commodity” shall refer to certain physical products that can be traded on a secondary market， such as agricultural products， mineral products （including oil） and precious metals （excluding gold）。

Article 4　Market risk management is the total process of identifying， measuring， monitoring and controlling market risks. The objective of market risk management is the maximization of risk-adjusted returns by controlling market risks within a reasonable range that can be borne by commercial banks.

Commercial banks shall adequately identify， accurately measure， continuously monitor and appropriately control the market risks in all trading and non-trading businesses to ensure safe and steady operation below a reasonable market risk level. The level of market risks borne by a commercial bank shall be compatible with its market risk management capability and capital strength.

To ensure effective implementation of market risk management， commercial banks shall integrate market risk identification， measurement， monitoring and control with business management activities throughout the bank such as strategic planning， business decision-making and financial budgeting.

Article 5　The China Banking Regulatory Commission （CBRC） shall carry out supervision and administration on the market risk levels and market risk management systems of commercial banks. The CBRC shall urge commercial banks to effectively identify， measure， monitor and control the various types of market risks taken in various businesses.

PART TWO　MARKET RISK MANAGEMENT

Article 6　Commercial banks shall， pursuant to the requirements hereof， establish a sound and reliable market risk management system commensurate with the nature， scale and complexity of the business. A market risk management system shall include the following basic elements：

1. effective supervision and control by the board of directors and senior management；

2. sound policies and procedures for market risk management；

3. sound procedures for identifying， measuring， monitoring and controlling market risks；

4. sound internal control and independent external audit； and

5. appropriate mechanism for market venture capital allocation.

Article 7　In carrying out market risk management， a commercial bank shall give due consideration to the correlation of market risks with other types of risks such as credit risks， liquidity risks， operational risks， legal risks and reputation risks， and coordinate the policies and procedures for the management of market risks with those for the management of other types of risks.

Section One　Supervision and Control by Board of Directors and Senior Management

Article 8　The board of directors and senior management of commercial banks shall implement effective supervision and control on market risk management system.

The board of directors of a commercial bank shall undertake the ultimate responsibilities for implementing supervision and control on market risk management， and shall ensure that the commercial bank effectively identifies， measures， monitors and controls various types of market risks taken in various businesses. The board of directors shall be responsible for examining and approving the strategies， policies and procedures for market risk management， determining the level of market risks that can be borne by the bank， urging the adoption of necessary measures by senior management for identifying， measuring， monitoring and controlling market risks， obtaining periodic reports on the nature and level of market risks， monitoring and assessing the comprehensiveness and effectiveness of market risk management and the performance of duties by the senior management with respect to market risk management. The board of directors may delegate part of the above functions to its subordinate special committee. The authorized committee shall submit the relevant reports to the board of directors on a regular basis.

The senior management of a commercial bank shall be responsible for formulating， periodically examining and supervising the execution of the policies， procedures and specific operational rules for market risk management， understanding in a timely manner the level of market risks and the management thereof， and ensuring that the bank has sufficient human and material resources and the appropriate organizational structure， management information system and technology standards to effectively identify， measure， monitor and control the various types of market risks taken in various businesses.

The board of directors and the senior management of a commercial bank shall have an adequate understanding of the businesses of the bank related to market risks， the various types of market risks borne by the bank and the corresponding methods for risk identification， measurement and control.

The board of supervisors of a commercial bank shall supervise the performance of the board of directors and the senior management of their duties with respect to market risk management.

Article 9　Commercial banks shall designate a dedicated department to be responsible for the work of market risk management. The department in charge of market risk management shall have clearly defined duties， maintain relative independence from the risk-taking business operation departments， provide independent market risk reports to the board of directors and the senior management， and have the human and material resources necessary to perform its duties of market risk management. The personnel of the department in charge of market risk management shall have the relevant professional knowledge and skills and a full understanding of the businesses of the bank that are related to market risks， the various types of market risks to be taken and the corresponding methods and technology for risk identification， measurement and control. Commercial banks shall ensure that their remuneration system is able to attract and retain qualified market risk management personnel.

The department in charge of market risk management of commercial banks shall perform the following duties：

1. propose and define market risk management policies and procedures， and submit the same to the senior management and the board of directors for examination and approval；

2. identify， measure and monitor market risks；

3. monitor the compliance of the relevant business operation departments and branches with market risk limits and report breaches of limits；

4. design and implement back testing and stress testing；

5. identify and assess the market risks inherent in new products and new businesses， and examine the relevant operational and risk management procedures；

6. provide in a timely manner independent market risk reports to the board of directors and the senior management； and

7. other relevant duties.

Commercial banks with relatively complex businesses and relatively high level of market risks shall establish a dedicated market risk management department to be responsible for the work of market risk management.

Article 10　The business operation department of commercial banks that bears market risks shall have a full understanding of and give full consideration to the various types of market risks inherent in the businesses conducted in order to achieve maximization of risk-adjusted returns. Business operation departments shall be liable for the losses arising from the market risks they bear.

Section Two

Policies and Procedures for Market Risk Management

Article 11　Commercial banks shall formulate formal and written market risk management policies and procedures that are applicable throughout the bank. Market risk management policies and procedures shall be commensurate with the nature， scale， complexity and risk characteristics of the bank‘s businesses， consistent with its overall business development strategy， management capability， capital strength and overall risk tolerance level， and in compliance with the relevant requirements of the CBRC regarding market risk management. The main particulars of market risk management policies and procedures shall include：

1. the businesses that may be conducted， financial instruments that may be traded or invested in， and investment， hedging and risk mitigation strategies and methods that may be adopted；

2. the level of market risks that can be borne by a commercial bank；

3. organizational structure， authority structure and accountability mechanism for market risk management with a clear division of labour；

4. procedures for identifying， measuring， monitoring and controlling market risks；

5. market risk reporting system；

6. market risk management information system；

7. internal control of market risks；

8. external audit on market risk management；

9. allocation of market risk capital； and

10. contingency plans in the event of major market risks.

Commercial banks shall revise and improve market risk management policies and procedures in a timely manner in accordance with the market risk status of the bank and the change in the external market.

The market risk management policies and procedures of commercial banks and the major revision thereof shall be approved by the board of directors. The senior management of commercial banks shall elucidate the bank‘s market risk management policies and procedures to the personnel involved in market risk management. Personnel involved in market risk management shall have a full understanding of their authority and duties in connection with market risk management.

Article 12　Prior to launching a new product or a new business， a commercial bank shall fully identify and assess its inherent market risks， establish the corresponding internal examination and approval， operational and risk management procedures， and obtain the approval of the board of directors or its authorized special committee/department. The internal examination and approval procedures for a new product or new business shall include review and acceptance of its operational and risk management procedures by relevant departments such as the business operation department， the department in charge of market risk management， the legal/compliance department， the finance and accounting department and the settlement department.

Article 13　Market risk management policies and procedures shall be applied on a consolidated basis and， as far as possible， to subsidiaries with independent legal person status， including offshore subsidiaries. However， commercial banks shall be fully aware of the legal differences and obstacles to capital movement among subsidiaries， and shall adjust the risk management policies and procedures accordingly in order to avoid underestimation of market risks in the process of netting positions between subsidiaries where there are legal differences and obstacles to capital movement.

Article 14　Commercial banks shall separate their bank accounts and trading accounts in accordance with the requirements of the CBRC on administration of capital adequacy ratio， and shall adopt such market risk identification， measurement， monitoring and control methods as commensurate with the nature and characteristics of its bank accounts and trading accounts.

Commercial banks shall formulate more detailed and specific risk management policies and procedures for different types of market risk （e.g. interest rate risks） and different types of business （e.g. derivatives trading）， and shall maintain the consistency among them.

Section Three　Market Risk Identification， Measurement， Monitoring and Control

Article 15　Commercial banks shall break down and analyze the market risk factors in each business and product， and identify the types and nature of the market risks in all trading and non-trading businesses in a timely and accurate manner.

Article 16　Depending on the nature， scale and complexity of its businesses， a commercial bank shall select appropriate and generally accepted measurement methods for the different types of market risks in its bank accounts and trading accounts， and shall measure， on the basis of reasonable assumptions and parameters， all the market risks it bears. A commercial bank shall accurately calculate as much as possible the market risks that can be quantified and assess those that are difficult to be quantified.

Commercial banks may use different methods or models to measure the different types of market risks in its bank accounts and trading accounts. Methods for measuring market risks include gap analysis， duration analysis， foreign exchange exposure analysis， sensitivity analysis， scenario analysis and internal-model based value-at-risk calculation. Commercial banks shall be fully aware of the advantages and limitations of each method for measuring market risks， and shall apply other analytical means such as stress testing as a complement.

Commercial banks shall， as far as possible， aggregate the market risks （interest rate risks in particular） measured in its bank accounts and trading accounts on a bank-wide basis in order to enable the board of directors and the senior management to understand the overall market risk level of the bank.

The board of directors， the senior management and the management officers involved in market risk management of commercial banks shall understand the methods and models adopted by the bank for measuring market risks and the assumptions thereof in order to have an accurate understanding of the measurement results of market risks.

Article 17　Commercial banks shall adopt measures to ensure the reasonableness and accuracy of the assumptions， parameters， sources of data and measurement procedures. Commercial banks shall evaluate the assumptions and parameters of the market risk measurement system on a regular basis and formulate internal procedures for revising assumptions and parameters. Major revisions of assumptions and parameters shall be subject to the examination and approval of senior management.

Article 18　Commercial banks shall revaluate the trading account positions based on market value at least once a day. The revaluation of market value shall be the responsibility of the middle office， back office， finance and accounting department or other related functional department or personnel that are independent from the front office. The pricing factors to be used in revaluation shall be obtained from channels independent from the front office or otherwise verified independently. The methods and assumptions applied to valuation by the front office， middle office， back office， finance and accounting department and department in charge of market risk management shall be consistent as far as possible. If they are not fully consistent， certain calibration or adjustment methods shall be formulated and applied. In the absence of market prices for market value revaluation， commercial banks shall determine the criteria for selecting and the channel for obtaining alternative data， and the method for calculating fair prices.

Article 19　The CBRC encourages commercial banks with relatively complex businesses and relatively high level of market risks to gradually develop and use internal models to measure value at risk and to conduct quantitative estimation of the level of market risks borne. Value at risk refers to the estimated potential maximum loss that is likely to be caused by change of market risk factors， such as interest rate and exchange rate， to a certain cash position， asset portfolio or organ within a particular holding period at a given confidence level.

Article 20　Commercial banks that use internal models shall reasonably select and regularly examine and adjust the modelling techniques （such as variance-covariance matrices， historical simulations and Monte Carlo simulations） as well as the modelling assumptions and parameters in accordance with the business scale and nature of the bank and with reference to internationally adopted standards， and shall establish and implement internal policies and procedures for introducing new models， adjusting existing models and testing model accuracy. Testing of models shall be conducted by personnel that are independent from those that develop and run the models.

Commercial banks that use internal models shall incorporate the application of models in day-to-day risk management. The information provided by the internal models shall become an integral part of the process of planning， monitoring and controlling market risk asset portfolio.

Commercial banks that use internal models shall appropriately understand and apply the calculation results of the market risk internal models， fully aware of the limitations of the internal models and use stress testing and other non-statistical measurement methods to complement the internal models.

Article 21　Commercial banks shall conduct back testing regularly to compare the estimated results from using market risk measurement methods or models with the actual results and， on the basis of such comparison， adjust and improve the market risk measurement methods or models.

Article 22　Commercial banks shall establish comprehensive and rigorous stress testing procedures to conduct on a regular basis simulation and estimation of the potential losses that may be caused by sudden events of small probability such as drastic change in market prices， or by unexpected political or economic events， in order to assess the tolerance of the bank to loss under extremely adverse conditions. Stress testing shall include qualitative and quantitative analyses.

Scenarios that have major impact on market risks， including historical significant loss scenarios and hypothetical scenarios， shall be selected for stress testing. Hypothetical scenarios include non-applicability of modelling assumptions and parameters， drastic changes in market prices， serious market illiquidity， and major changes in the external environment that may cause major loss or create difficulty in risk control. Commercial banks shall use the stress scenarios specified by the CBRC and those designed according to the business nature of the bank and market environment in stress testing.

Commercial banks shall， on the basis of the results of stress testing， formulate contingency plans for scenarios that have major impact on market risks and determine whether and how to improve limit management， capital allocation and other policies and procedures for market risk management. The board of directors and the senior management shall examine the design and results of stress testing regularly and enhance the stress testing procedures on an on-going basis.

Article 23　Commercial banks shall implement limit management on market risks， formulate internal examination and approval procedures and operational rules for each type and level of limits， and establish， regularly examine and update the limits in accordance with the nature， scale， complexity and risk tolerance of the businesses.

Market risk limits include trade limits， risk limits and stop-loss limits and may be broken down by region， business operation department， asset portfolio， financial instrument and risk type. Commercial banks shall， according to the different purposes of different limits in controlling risks and the limitations thereof， establish a reasonable limit system in which limits of different types and levels are complementary to one another to effectively control market risks. The overall market risk limit and the types and structure of limits of a commercial bank shall be approved by the board of directors.

In designing its limit system， a commercial bank shall consider the following factors：

1. the nature， scale and complexity of business；

2. the market risk level that can be borne by the commercial bank；

3. the track records of the business operation department；

4. the professional level and experience of personnel；

5. the pricing， valuation and market risk measurement systems；

6. the results of stress testing；

7. the level of internal control；

8. the capital strength； and

9. the development and change in the external market.

Commercial banks shall formulate procedures for monitoring and controlling， and handling breaches of limits. Breaches of limits shall be reported to the management at the corresponding level in a timely manner. The management at such level shall decide whether to approve the breach and the duration of the breach in accordance with limit management policies and procedures. Breaches of limit that are not approved shall be handled in accordance with limit management policies and procedures. The management shall decide whether to adjust the limit management system in light of the occurrence of breaches of limits.

Commercial banks shall ensure consistency among market risk limits， and shall coordinate the limit management of market risks with the limit management of other types of risks such as liquidity risk limits.

Article 24　Commercial banks shall establish a sound and reliable management information system for measuring， monitoring and controlling market risks， and shall adopt corresponding measures to ensure the accuracy， reliability， timeliness and security of data. The management information system shall be able to support the measurement of market risks and the back testing and stress testing it implements， and shall also be able to monitor the compliance with market risk limits and to provide relevant contents for market risk reports. Commercial banks shall establish corresponding reconciliation procedures to ensure the consistency and completeness of the data of different departments and product lines， and to ensure that accurate pricing and business data is entered into the market risk measurement system. Commercial banks shall improve and update the management information system according to needs in a timely manner.

Article 25　Commercial banks shall formulate contingency plans for scenarios that have major impact on market risks， including taking measures such as hedging and reduction of risk exposure to reduce market risk level， and shall establish contingency or standby systems， procedures and measures for handling natural disasters， failure in banking system and other emergencies， in order to reduce the potential losses incurred by the bank and the potential damage to the bank‘s reputation.

Commercial banks shall use the results of stress testing as an important basis for formulating market risk contingency plans， and shall examine and test such contingency plans regularly and update and improve such contingency plans on an on-going basis.

Article 26　Reports of market risks shall be provided to the board of directors， the senior management and other management personnel in a regular and timely manner. Reports of different levels and types shall comply with the specified scope， procedures and frequency of delivery. A report shall include all or part of the following contents：

1. market risk positions， calculated respectively based on business， department， region and risk type；

2. market risk levels， calculated respectively based on business， department， region and risk type；

3. structural analysis of market risk positions and market risk levels；

4. profits and losses；

5. change in the methods and procedures for market risk identification， measurement， monitoring and control；

6. compliance with the market risk management policies and procedures；

7. compliance with the market risk limits， including handling of breach of limits；

8. particulars of back testing and stress testing；

9. particulars of internal and external audit；

10. allocation of market risk capital；

11. recommendations for improving market risk management policies and procedures as well as market risk contingency plans； and

12. other matters concerning market risk management.

Market risk reports submitted to the board of directors shall generally include contents such as overall market risk positions， risk levels， profits and losses and compliance with market risk limits and other market risk management policies and procedures. Market risk reports submitted to the senior management and other management personnel shall generally include detailed information broken down by region， business operation department， asset portfolio， financial instrument and risk type， and have a higher reporting frequency.

Section Four　Internal Control and External Audit

Article 27　Commercial banks shall establish a comprehensive internal control system for market risk management as an integral part of the bank‘s overall internal control system in accordance with the relevant requirements of the CBRC on internal control in commercial banks. Internal control of market risk management shall facilitate efficient business operations， provide reliable financial and regulatory reports， promote strict compliance by the bank with relevant laws， administrative regulations， departmental rules and internal systems and procedures， and ensure effective operation of the market risk management system.

Article 28　To avoid potential conflict of interests， a commercial bank shall ensure that the duties of each functional department are clearly defined and that related functions are properly separated. Relative independence shall be maintained between the market risk management function and the business operation function of a commercial bank. The front office and back office of a trading department shall be strictly separated， and the trading staff of the front office shall not participate in formal confirmation of trade， reconciliation， revaluation， settlement of trade and receipt and payment. Where necessary， a middle office supervision and control mechanism may be established.

Article 29　Commercial banks shall avoid conflict of interests between their remuneration system and incentive system， and the objectives of market risk management. The board of directors and the senior management shall avoid the negative effect of a remuneration system that encourages excessively risk-taking investment， prevent performance appraisal from excessive emphasis on short-term investment returns without due regard to long-term investment risks. The remuneration for personnel in charge of market risk management shall not be linked to returns on direct investment.

Article 30　The internal audit department of a commercial bank shall regularly （at least annually） conduct an independent examination and assessment of the accuracy， reliability， adequacy and effectiveness of each component and stage of the market risk management system. Internal audit shall be conducted on both the business operation department and the department in charge of market risk management. Internal audit reports shall be submitted directly to the board of directors. The board of directors shall urge the senior management to submit improvement proposals and adopt enhancement measures for the issues identified in internal audit. The internal audit department shall follow up on and inspect the implementation of improvement measures and submit relevant reports to the board of directors.

A commercial bank‘s internal audit on the market risk management system shall at least include the following contents：

1. the market risk positions and risk levels；

2. the adequacy of documentation in the market risk management system；

3. the organizational structure of market risk management， the independence of the market risk management function， and the adequacy， professionalism and performance of the market risk management personnel；

4. the types and scopes of risks covered by the market risk management；

5. the adequacy and reliability of the market risk management information system， the accuracy and completeness of the market risk position data， and the consistency， timeliness， reliability and independence of the data sources；

6. the reasonableness and stability of the parameters and assumptions used by the market risk management system；

7. the appropriateness of market risk measurement methods and the accuracy of measurement results；

8. the compliance with market risk management policies and procedures；

9. the effectiveness of market risk limit management；

10. the effectiveness of the back testing and stress testing system；

11. the calculation and internal allocation of market risk capital； and

12. the investigation of major transactions in breach of limit， unauthorized transactions and failure in reconciliation of accounts.

Where a new product or new business with major impact on the market risk level is introduced， or where there is a major change or serious defect in its market risk management system， the commercial bank shall expand the scope， and increase the frequency， of internal audit of market risks.

The internal audit personnel of the commercial bank shall have the relevant professional knowledge and skills， have undergone the relevant training， and be able to fully understand the methods and procedures for identifying， measuring， monitoring and controlling market risks.

Article 31　Commercial banks with inadequate internal audit capability shall appoint a social intermediary institution to carry out audit on the nature and levels of market risks and the market risk management system.

The CBRC also encourages other commercial banks to appoint social intermediary institution to carry out audit on the nature and level of market risks， and the market risk management system regularly.

Section Five　Market Risk Capital

Article 32　Commercial banks shall allocate adequate capital for the market risks they bear in accordance with the requirements of the CBRC on the administration of capital adequacy ratio of commercial banks.

The CBRC encourages commercial banks with relatively complex businesses and relatively high level of market risks to apply the rate of risk-adjusted returns to internal capital allocation and performance appraisal， and to achieve a proper balance between market risk level and profitability level throughout the bank and across all business operation departments.

PART THREE　MARKET RISK REGULATION

Article 33　Commercial banks shall submit to the CBRC financial and accounting statements， statistical reports and other reports relating to market risks as required. If a social intermediary institution is appointed to carry out audit on the nature and level of market risks and market risk management system， external audit reports shall also be submitted.

The market risk management policies and procedures of commercial banks shall be reported to the CBRC for record filing.

Article 34　Commercial banks shall timely report the following to the CBRC：

1. incurring of any heavy loss in excess of the market risk limit internally set by the bank；

2. impact on the market risk level of the bank and management conditions resulting from a major event in the domestic or international financial market that causes significant market volatility；

3. illegal acts in trading business； and

4. other major unexpected incidents.

Commercial banks shall formulate a market risk major event reporting system and report the same to the CBRC.

Article 35　The CBRC shall conduct on-site examination of the market risk management conditions of commercial banks regularly. The main particulars of such examination shall be：

1. the performance of duties of market risk management by the board of directors and the senior management；

2. the adequacy and implementation of market risk management policies and procedures；

3. the effectiveness in the identification， measurement， monitoring and control of market risks；

4. the reasonableness and stability of the assumptions and parameters used in the market risk management system；

5. the effectiveness of the market risk management system；

6. the effectiveness of market risk limit management；

7. the effectiveness of internal control of market risk；

8. the independence， accuracy and reliability of the bank‘s internal reports on market risks， and truthfulness and accuracy of the statements and reports relating to market risks submitted to CBRC；

9. the adequacy of market risk capital；

10. the professional knowledge and skills of the personnel in charge of market risk management and the performance of their duties； and

11. other matters regarding market risk management.

Article 36　In regard to issues of market risk management identified by the CBRC during regulation， a commercial bank shall submit a remedial proposal and adopt remedial measures within the stipulated time limit. The CBRC may give remedial proposals regarding the market risk management system of a commercial bank， including proposals for adjusting the methods， models， assumptions and parameters for measuring market risks.

Where a commercial bank fails to effectively adopt remedial measures within the stipulated time limit or whose market risk management system has serious defects， the CBRC has the right to adopt the following measures：

1. require the commercial bank to increase the frequency of submission of market risk reports；

2. require the commercial bank to provide additional related information；

3. require the commercial bank to appropriately reduce its market risk level through adjustment of asset portfolio and other means； and

4. relevant measures specified in the PRC， Banking Regulation Law and other laws， administrative regulations and departmental rules.

Article 37　Commercial banks shall disclose the quantitative and qualitative information of its market risk profile in accordance with the provisions of the CBRC on information disclosure. The information to be disclosed shall at least include the following：

1. the types and the overall level of market risks borne， and the position and level of each type of market risks；

2. the sensitivity analysis of the relevant market prices， such as impact of change in interest rates or exchange rates on the bank‘s returns， economic value or financial conditions；

3. the market risk management policies and procedures， including the general philosophy， policies， procedures and methods of risk management， the organizational structure of risk management， the market risk measurement methods and the parameters and assumptions used therein， the particulars of back testing and stress testing， and the methods of market risk control；

4. the status of market risk capital； and

5. a commercial bank that adopts internal models shall disclose the types and scopes of market risks calculated， the levels of overall market risk and different types of market risks calculated， the maximum， minimum， average and end-of-period values at risk during the reporting period， as well as the modelling techniques used， the parameters and assumptions used therein， the particulars of back testing and stress testing and the internal procedures for testing model accuracy.

PART FOUR　SUPPLEMENTARY PROVISIONS

Article 38　Other financial institutions such as policy banks， financial asset management companies， urban credit cooperatives， rural credit cooperatives， trust and investment companies， finance companies， finance leasing companies， automobile finance companies and postal savings institutions shall refer to these Guidelines.

Article 39　For State-owned commercial banks that have no board of directors， the management duties imposed by these Guidelines on the board of directors with respect to market risk management shall be performed by the business decision making organ.

Article 40　Foreign bank branches established in the People‘s Republic of China shall regularly submit market risk management reports to their head office pursuant to the market risk management policies and procedures formulated by their head office， and shall submit the relevant reports on market risks to the CBRC as required.

Article 41　An explanation of the terms specified in these Guidelines is provided in the Appendix of these Guidelines.

Article 42　The requirements of these Guidelines shall be satisfied no later than the end of 2007 in the case of State-owned commercial banks and commercial banks limited by shares， and no later than the end of 2008 in the case of urban commercial banks and other commercial banks.

Article 43　The CBRC shall be responsible for the interpretation of these Guidelines.

Article 44　These Guidelines shall be implemented as of 1 March 2005.