(2006年)商业银行市场风险管理指引-英文版.doc

Guidelines on Market Risk Management of Commercial Banks ? 　　（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 Banking Regulation and Supervision Law of the People’s Republic of China，the Commercial Banking Law of the People’s Republic of China 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 domestic commercial banks，wholly foreign-funded 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 man