BEIJING -- China will impose tougher penalties for financial violations in the banking and insurance sectors, according to a new regulation on administrative punishments in the sectors that will come into effect on Aug 1.

The regulation, issued by the China Banking and Insurance Regulatory Commission, integrates and optimizes the administrative penalty procedures for the banking and insurance industries, and establishes the basic principles on which such penalties are based.

An increase in the severity of punishments is highlighted in the regulation, particularly for repeat offenders, those failing to cooperate with regulatory enforcement, and violations causing serious consequences.

The regulation stipulates both the punishment of institutions and the holding to account of individuals responsible for transgressions.