An official government document indicates that China will merge the China Banking Regulatory Commission (CBRC) and the China Insurance Regulatory Commission (CIRC) according to a new report from Caixin.
Caixin the official document states that CBRC and CIRC will be merged into a single commission under the direct authority of the State Council, and be responsible for overseeing China’s banking and insurance sectors.
The People’s Bank of China (PBOC) will also assume certain functions currently undertaken by CIRC and CBRC, chief amongst them the drafting of key laws and regulations for the banking and insurance sectors.
The financial regulatory framework of China’s central government is currently comprised of the “one bank and the three commissions,” referring to PBOC (the Chinese central bank), CBRC, CIRC and the China Securities Regulatory Commission.
Rumours of a merger between CBRC and CIRC have circulated since the start of the year amidst ongoing reform of China’s financial regulatory framework following the establishment of the Financial Stability and Development Commission last July.
Source have said that the central government hopes to improve the coordination and efficiency of financial regulation via the consolidation of both bodies.