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CBIRC second supervise storm to the small and medium banks and insurance companies



The CBIRC will convene a seminar on the management of small and medium-sized banks and insurance companies next week, and the chairman of the Banking Regulatory Commission, Mr Guo, will attend. April 16, the CBIRC will organize the small and medium banks and insurance companies corporate governance Training Symposium.

Now " the convening of small and medium-sized banks and insurance companies corporate governance Training Symposium Notice" has been issued. According to the content of the notice, the training will be of high level. The subject of the notice is the CBIRC local Bureau, the national joint-stock commercial banks, the city commercial banks, the rural small and medium-sized financial institutions, insurance companies.

In addition, the CBIRC chairman Guo will attend the symposium and address. In fact, this is the "second Fire" since the establishment of the newly-listed CBIRC. Before April 9, the CBIRC officially listed the "No. 1 document"----on the issuance of the "Financing guarantee company supervision and management regulations," the four supporting system notice. The supporting measures of "document 1th" continue to embody supporting entities, mutual benefit financial policy direction, to the management of products have adopted a more stringent policy, corresponding to the management of products to break the new regulatory direction, to continue to strengthen the concentration of constraints, optimize liquidity risk management, and using the banking "capital constraints" management concept to limit the proportion of assets of a financial leasing company.

However, an analyst of the Chinese Debt Insurance Regulatory Commission said that the issuance date of the 1th article was April 2, 2018, but the net was closed until after the establishment of the CBRC, the official release of the regulatory document, the supervision documents have been ready, but the establishment of the department after the listing will be released.
The small and medium-sized banks and insurance companies for Corporate Governance Training Symposium, it is the first time since the establishment of the CBIRC, the security Bureau, as well as small and medium-sized market banks and all insurance institutions of the first supervision and training Congress, the supervision of the sharp sword to financial institutions corporate governance in the financial turmoil. In fact, the former CBRC has attached great importance to the issue of corporate governance of banking financial institutions. At the beginning of the new year, the former CBRC has issued the "eight aspects", which is, " the CBRC on further deepening the regulation of the banking market turmoil," the first listed as eight major aspects is the corporate governance.

The "notice" points out that the corporate governance disorder of banking financial institutions includes three aspects such as shareholder and equity, performance and evaluation, and qualification.

In an interview with the People's Daily, Mr Guo, the former chairman of the CBRC, said in a January 17 news that the main problem in the banking industry is that regulated shareholder management and corporate governance are not synchronized. For example, some shareholders even regard banks as their own cash machines, wantonly engage in improper related transactions and benefit delivery.

In addition, for a small number of lawless elements through the complex structure, false contributions, circular injection, illegally constructing some large financial groups, must be seriously dealt with in accordance with the law.

Guo said that there are not only shareholders negative and not in place resulting in "insider" control, but also occurred the minority of shareholders disorderly doing without control and wrong doing,  intervention the normal operation of the bank as their wish, and some shareholders even regard the bank as their own ATM machine, wanton improper related transactions and transfer interest inside.

The illegal construction of large financial groups by means of complex structures, false contributions and circular injections of lawless elements has become a serious obstacle to deepening financial reform and safeguarding the security of the banking system and must be dealt with seriously in accordance with the law. An expert of the national Finance and Development laboratory told the first financial reporter that the two forms of the main risk of bank corporate governance are the internal control and the excessive interference of the shareholders in the bank operation. The former senior executives often pass beyond the prescribed scope of banking operations, access to the public interest of banks, the latter led to a large number of related transactions, so that banks become affiliated counterparties to the counterparty, into a shareholder "ATM machine."

For example, in April 2017, the former CBRC announced the penalties on not reporting the Heng Fung Bank's " 5% shareholders change without report to the CBRC for approval",  "did not disclose the annual report information", "not within the stipulated time disclosure of the change of the governor information" and other 18 reasons were fined 8 million yuan.

Source: First Financial daily 2018-04-13