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

    Major shareholders of banks and insurers in for tighter governance

    By JIANG XUEQING | China Daily | Updated: 2021-10-16 07:42
    Share
    Share - WeChat
    [Photo/VCG]

    China's trial measures for the regulation of major shareholders in banking and insurance institutions issued on Thursday signaled the tightening of corporate governance by financial regulators, industry experts said.

    In recent years, irregular activities, including improper related-party transactions, the transfer of benefits and entrusted shareholdings, occurred frequently at banking and insurance institutions, especially among small and medium-sized banks. Such activities have become a major source of financial risks, said Zheng Chenyang, a researcher with the BOC Research Institute.

    The China Banking and Insurance Regulatory Commission announced measures to strengthen the regulation of behaviors by major shareholders, forcing them to exercise rights properly and fulfill their obligations so that China's banking and insurance institutions will maintain steady operations, an official of the CBIRC said.

    The regulator established stricter criteria to conduct more targeted regulation by clearly pointing out that major shareholders include those who nominated more than two directors of the board, and those who are considered by the board of directors of a banking or insurance institution as having a controlling impact on the institution, Zheng said.

    In the past, some shareholders owning less than 5 percent of a bank's shares were not considered major shareholders despite their controlling impact on the bank. The new regulation, however, will put them under supervision, she said.

    According to the measures, major shareholders also include those holding at least a 15 percent stake in a large State-controlled commercial bank, a national joint-stock commercial bank, a foreign bank, a privately-owned bank, an insurer, an asset management company, a financial leasing company, a consumer finance company and an auto finance company, as well as those holding at least a 10 percent stake in a city or rural commercial bank and those holding the largest equity stake in a banking or insurance institution with ownership of no less than 5 percent.

    "Regulation of major shareholders' behaviors is a major aspect of corporate governance, a crucial area of the tightening of banks' risk supervision and an important part of regulatory improvement. It indicates that China's top banking and insurance regulator is further stepping up efforts to shore up regulatory weak links," said Zeng Gang, deputy director-general of the National Institution for Finance & Development.

    A few cases showed the failure of corporate governance triggered huge losses at banks and caused tremendous hidden risks in the financial system. Based on problems that were already found, the regulator included prohibition clauses in the trial measures to prevent potential risks taking place and create better conditions for regulated corporate governance, Zheng said.

    The CBIRC emphasized that major shareholders should use their own capital to buy shares of banking and insurance institutions. It stressed the need for ownership authenticity and transparency and further regulated behaviors like cross-ownership and equity pledges.

    For a major shareholder who pledged more than 50 percent of the equities it held in a banking or insurance institution for financing, the shareholder and the directors it nominated are not allowed to exercise voting rights at the shareholders' meetings and meetings of the board of directors, the measures said.

    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
     
    亚洲国产精品无码久久久秋霞2| 人妻中文字系列无码专区| 中文字幕av无码专区第一页| 亚洲男人第一无码aⅴ网站| 免费看无码特级毛片| 久久亚洲av无码精品浪潮| 自慰无码一区二区三区| √天堂中文官网8在线| 国产综合无码一区二区三区| 中出人妻中文字幕无码| 无码AV中文字幕久久专区| 无码日韩人妻AV一区免费l| 日韩AV片无码一区二区不卡电影| 亚洲真人无码永久在线| 久久有码中文字幕| 中文字幕丰满伦子无码| 刺激无码在线观看精品视频| 亚洲av无码成人黄网站在线观看| 久久午夜无码鲁丝片秋霞 | 精品久久久久久无码人妻热| 东京热av人妻无码专区| 亚洲国产午夜中文字幕精品黄网站 | 亚洲国产精品成人精品无码区| 中文字幕本一道先锋影音| 日韩亚洲不卡在线视频中文字幕在线观看 | 亚洲中文字幕无码中文字在线| 精品国产毛片一区二区无码| 精品少妇无码AV无码专区| 日韩精品专区AV无码| 无码国产精品一区二区免费3p| 亚洲精品无码不卡在线播放HE| 人妻少妇看A偷人无码电影| 日韩区欧美区中文字幕| 在线中文字幕精品第5页| 中文字幕永久一区二区三区在线观看| 日本精品中文字幕| 7国产欧美日韩综合天堂中文久久久久 | 亚洲AV日韩AV永久无码免下载| 久久久久精品国产亚洲AV无码 | 色情无码WWW视频无码区小黄鸭| 亚洲国产精品无码久久一线|