Beijing Commits to Opening and Reform of Banking Sector

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The China Banking Regulatory Commission has said it will deepen and advance the opening and reform of China’s banking sector in the “new era” inaugurated by the 19th National Chinese Communist Party Congress.

State media reports that at a CBRC party meeting convened by regulatory chief Guo Shuqing just following the 19th National CCP Congress, regulators proposed new targets for the prevention of financial risk, as well as advance banking sector opening and reform.

CBRC said that it would “uphold fair and equal treatment, and steadily advance banking opening and reform against the background of a new era for Socialism with Chinese Characteristics, continuing to unleash the innovative energy and potential for banking sector development.”

With respect to specific measures CBRC said that it would “focus on improving the banking administrative structure, clarify equity relations, and while protecting the lawful rights and interests of investors, strictly deal with the misconduct of certain shareholders, to prevent inappropriate affiliate transactions and delivery of gains.”

CBRC also signalled a continued commitment to the prevention of systemic risk in the Chinese financial system.

The regulator said it would “firmly prevent and resolve financial risk under new circumstances…make the active prevention and resolution of financial risk an even greater priority, continue to deeply rectify market problems in the banking sector, actively and appropriately dispose of key risks…prevent individual regional risk from evolving into global systemic risk, and firmly guard the bottom line against systemic financial risk.”

 

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