日韩精品久久一区二区三区_亚洲色图p_亚洲综合在线最大成人_国产中出在线观看_日韩免费_亚洲综合在线一区

Global EditionASIA 中文雙語Fran?ais
Business
Home / Business / Finance

Financial holding firms face increasing scrutiny

By Chen Jia | China Daily | Updated: 2020-09-15 08:53
Share
Share - WeChat
An employee of Lin'an Rural Commercial Bank counts banknotes at the bank's branch in Xitianmu area in Hangzhou, Zhejiang province, on Feb 25. [Photo by Hu Jianhuan For China Daily]

Rules unveiled to plug regulatory loopholes, vitalize the real economy

New regulations to better govern financial holding companies will help prevent systemic risks to the financial sector, experts said.

The State Council, China's Cabinet, unveiled the new regulations on Sunday, which seek to regulate the market access of financial holding companies. They will take effect on Nov 1 this year.

The new rules require nonfinancial companies or other eligible entities with assets exceeding the specified thresholds to apply to and get approval from the People's Bank of China, the central bank, to establish financial holding companies. The rules also stipulate that applicant companies should control at least two financial institutions doing business across financial sectors.

Considering the need to sustain financial stability, regulators have extended the interim period that allows existing financial holding companies to apply for new business licenses from six months to 12 months. In addition, the central bank should determine whether to approve a certain company's business license or not within a six-month period, said a document released on the government website.

The PBOC also released a set of regulatory measures on Sunday, which stipulate specific supervision of various financial service segments and the setting up of "firewalls" between financial holding companies' major businesses and their financing activities. It has also created a regulatory mechanism under which financial holding groups must attain a certain capital adequacy level, primarily to offset risks.

Pan Gongsheng, vice-governor of the PBOC, said at a news conference on Monday that the measures are aimed at plugging regulatory loopholes, prevent systemic risks and enhance financial support to the real economy.

According to Pan, the PBOC will be responsible for the overall supervision of financial conglomerates, while the banking, insurance and securities regulators will supervise the business segments. In addition, a coordination mechanism will be created among the supervisory bodies.

Specific rules on registered capital, shareholders, actual controllers, capital replenishment and risk management will be introduced at a later date, the PBOC official said.

"The new regulation is positive for China's financial system as it will improve governance around the ownership of financial institutions and strengthen system-level capitalization. This in turn will lower contagion risks," said David Yin, vice-president and senior analyst at Moody's Investors Service, a global credit ratings agency.

The regulations, in particular, require transparent and simplified organizational structures, with financial institutions no longer permitted to hold shares in group affiliates or in their parent entities. That also increases scrutiny of the legitimacy of the financial holdings held by companies and the capital sources, he said.

The introduction of the new rules will help strengthen risk control, capital management and disclosure practices of financial holding companies and set qualification requirements for shareholders, said Yin.

The new rules will help promote a rational expansion of financial holding companies, while reducing the invisible risks and risk contagion in the financial sector and enhance financial stability, said Xiao Feifei, an analyst with CITIC Securities.

Banking regulators took control of some financial institutions earlier this year, as the slowing economic growth and disruption from the novel coronavirus pandemic strained the balance sheets of financial institutions, especially some regional and smaller banks held by large financial conglomerates.

To prevent financial risks from spreading, regulators allowed the indebted Baoshang Bank, owned by Tomorrow Group, to file for bankruptcy. This was subsequently followed by the liquidation of the original shareholders' equity and unprotected creditors' rights in accordance with the law. Authorities also allowed local governments to use 200 billion yuan ($29.28 billion) of the funds raised via special bonds to firm up regional banks' balance sheets.

Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
CLOSE
 
主站蜘蛛池模板: 天天摸天天干 | 欧美在线亚洲 | 亚洲一区二区三区影院 | 偷拍自拍视频网 | 国产人成午夜免视频网站 | 在线播放日本爽快片 | 亚洲黄色一级大片 | 成人一级| 大学生a级毛片免费视频 | 李宗瑞国产福利视频一区 | 国产日产在线观看 | 99热这里有免费国产精品 | 精品久久久久久久久久 | 久久国产精品久久 | 国产se | 免费在线观看www | 欧美永久精品 | 91精品观看91久久久久久 | 日韩一区二区三区精品 | 日韩在线视频免费观看 | 久久香蕉国产线熟妇人妻 | caoliushequ2017| 午夜婷婷精品午夜无码A片影院 | 亚欧精品一区二区三区四区 | 日韩精品专区在线影院重磅 | 午夜宫电影 | 日韩免费视频 | 国产一区二区自拍 | 免费看黄色一级大片 | 亚洲免费在线看 | 牛牛碰在线视频 | 国产成人综合日韩精品婷婷九月 | 91久色视频 | 欧美日韩一区二区三区在线观看 | 欧美日韩一区二区在线观看视频 | 成人网在线 | 在线欧美日韩 | 欧美精品一区二区三区四区 | 亚洲午夜精品视频 | 爱爱视频网 | 亚洲国产一区二区三区四区五区 |