China Construction Bank Corporation(601939) 2021 capital adequacy Report
catalogue
1 background 41.1 bank profile 41.2 reporting purpose 42 capital adequacy ratio 52.1 consolidation scope 52.2 Capital adequacy ratio 62.3 regulatory capital gap of consolidated subsidiaries 72.4 restrictions on capital transfer within the group 73 capital management 83.1 methods and procedures for internal capital adequacy assessment 83.2 capital planning and capital adequacy management plan 83.3 capital composition 94 risk management 124.1 risk management system 124.2 risk weighted assets 125 credit risk 145.1 credit risk management 145.2 credit risk exposure 155.3 credit risk measurement 175.4 Asset Securitization 225.5 bank account book equity risk 255.6 counterparty credit risk 266 market risk 286.1 market risk management 286.2 market risk measurement 287 operational risk 308 bank book interest rate risk 319 remuneration 329.1 nomination and Remuneration Committee of the board of directors 329.2 remuneration policy thirty-two
9.3 basic information of senior managers’ remuneration 34 Appendix 1: information of external rating agencies used in asset securitization products 35 Appendix 2: capital composition information 41 Appendix 3: main features of qualified capital instruments 49 interpretation 63 important tips
The bank guarantees the authenticity, accuracy and completeness of the information disclosed in this report.
According to the requirements of the capital management measures of commercial banks (for Trial Implementation) issued by the former Bank Of China Limited(601988) Industry Regulatory Commission (hereinafter referred to as “CBRC”), the group shall disclose the capital adequacy ratio information quarterly, semi annually and annually, but the disclosure contents are different with different frequencies. The group will issue a more detailed capital adequacy report every year, and the summary information will be provided quarterly from March 2013. The capital adequacy report of China Construction Bank Corporation(601939) 2021 is prepared in accordance with the concept and rules of capital adequacy stipulated by supervision rather than financial and accounting standards. Therefore, some information in the capital adequacy report of China Construction Bank Corporation(601939) 2021 cannot be directly compared with the financial information in the annual report of China Construction Bank Corporation(601939) 2021, especially when disclosing credit risk exposure.
China Construction Bank Corporation(601939)
March 2022
1 background 1.1 bank profile
China Construction Bank Corporation(601939) is a leading large commercial bank in China, headquartered in Beijing. Its predecessor, China China Construction Bank Corporation(601939) was founded in October 1954. The bank was listed on the stock exchange of Hong Kong in October 2005 (stock code 939) and on the Shanghai Stock Exchange in September 2007 (stock code China Construction Bank Corporation(601939) ). The market value of the bank at the end of 2021 was about US $175302 billion, ranking sixth among listed banks in the world. Ranked by tier 1 capital, the group ranks second among global banks.
The bank provides customers with comprehensive financial services such as personal banking, corporate banking and investment and wealth management. It has 14510 branches and 351252 employees, serving hundreds of millions of individual and corporate customers. It has subsidiaries in fund, leasing, trust, insurance, futures, pension, investment banking and other industries, overseas institutions covering 31 countries and regions, and nearly 200 overseas institutions at all levels. 1.2 purpose of report
The group prepared and disclosed the capital adequacy report of China Construction Bank Corporation(601939) 2021 in accordance with the measures for capital management of commercial banks (for Trial Implementation) and the notice of the CBRC on printing and distributing supporting policy documents for capital supervision of commercial banks. This report will provide qualitative and quantitative information related to the calculation scope of capital adequacy ratio, capital composition, risk management system, credit risk, market risk, operational risk and other risks, and compensation, so that investors and the public can fully understand the status of capital management, risk management and compensation management of the group. 2. Capital adequacy ratio 2.1 consolidation scope
The group measures the capital adequacy ratio in accordance with the capital management measures of commercial banks (for Trial Implementation) issued by the former CBRC in June 2012. The calculation scope of consolidated capital adequacy ratio includes all branches and subsidiaries of financial institutions at home and abroad (excluding insurance companies). 2.1.1 differences between regulatory consolidation and financial consolidation
According to regulatory requirements, the group did not include industrial and commercial enterprises and insurance subsidiaries in the calculation scope of capital adequacy ratio consolidation, resulting in certain differences between the scope of regulatory consolidation and financial consolidation. As of December 31, 2021, the differences between the scope of the group’s regulatory consolidation and financial consolidation are shown in the following table.
Table 1: differences between regulatory consolidation and financial consolidation
Serial number company name business category registered place included included included
Financial and regulatory consolidation
China Jianxin Insurance Co., Ltd
1. In addition to the differences in the scope of financial consolidation and regulatory consolidation caused by the above Tier-1 subsidiaries, according to the regulatory rules, some insurance and industrial and commercial enterprise subsidiaries of the group’s subsidiaries are not included in the scope of regulatory consolidation. 2.1.2 basic information of invested institutions
According to regulatory requirements, the group adopts different treatment methods for different types of invested institutions when measuring the consolidated capital adequacy ratio:
Subsidiaries of financial institutions that have been included in the scope of supervision and financial consolidation. The group includes the capital and risk weighted assets of such subsidiaries in the calculation scope of consolidated capital adequacy ratio.
For insurance subsidiaries that are not included in the scope of regulatory consolidation but have been included in the scope of financial consolidation. When measuring the consolidated capital adequacy ratio, the group will deduct the investment in such subsidiaries from the capital.
For subsidiaries of industrial and commercial enterprises that are not included in the scope of regulatory consolidation but have been included in the scope of financial consolidation. When measuring the consolidated capital adequacy ratio, the group will calculate its risk weighted assets according to the risk weight stipulated by the supervision.
For other financial institutions not included in the scope of supervision and financial consolidation. The group judges the investment limit of such financial institutions according to the regulatory rules. For the capital investment exceeding the limit, it shall be deducted from the capital. For the capital investment not exceeding the limit, its risk weighted assets shall be calculated according to the weight specified in the regulation.
For other industrial and commercial enterprises not included in the scope of supervision and financial consolidation. The group calculates its risk weighted assets according to the weight specified in the regulation.
Table 2: basic information of the top ten invested institutions included in the consolidation scope
Investment balance of the bank direct and indirect
No. name of investee (RMB 100% shareholding ratio, registration place: RMB 10000)
1 China China Construction Bank Corporation(601939) (Asia) Co., Ltd. 32878 – 100% Hong Kong, China
2. CCB financial assets investment Co., Ltd. 27 Tcl Technology Group Corporation(000100) % – Beijing, China
3. CCB Financial Management Co., Ltd. 15 Tcl Technology Group Corporation(000100) % – Shenzhen, China
4 CCB Financial Leasing Co., Ltd. 11163100% – Beijing, China
5 CCB Brazil financial holding – 954299.99% 0.01% Sao Paulo I, Brazil
