CBIRC to strengthen corporate supervision

The China Banking and Insurance Regulatory Commission said on Friday that it promoted the disposal of non-performing assets totaling 9.2 trillion yuan ($1.34 trillion) for banking and insurance institutions from 2020 to 2022.

The regulator said it will continue to strengthen corporate governance supervision, improve the operational and management levels of financial institutions, and firmly uphold the bottom line of no systemic financial risks.

Over the past three years, the CBIRC promoted commercial banks to strictly classify assets to accurately reflect their asset quality and guided insurance companies in improving their solvency risk management organizational structure, management systems and assessment mechanisms.

The CBIRC established a sound corporate governance assessment mechanism and formulated regulatory assessment methods for corporate governance of banking and insurance institutions.

Since the regulator published a three-year action plan - from 2020 to 2022 - to improve corporate governance in the banking and insurance sectors, it has conducted two comprehensive corporate governance assessments of 1,800 banking and insurance institutions. Currently, the rectification rate of the problems identified in the preliminary assessments has reached 83.7 percent.

The CBIRC has taken a tough stance on market chaos in terms of equity structure, shareholder behaviors and related-party transactions.

Over the past three years, more than 3,600 illegal and non-compliant shareholders were removed from China's banking and insurance institutions, and 27 billion shares of illegal equity were transferred out.

Over the past three years, the CBIRC imposed shareholder rights restrictions on nearly 4,000 illegal and non-compliant shareholders of banking and insurance institutions, released lists of 124 major illegal and non-compliant shareholders, and punished 700 employees of banking and insurance institutions by measures such as warnings, fines and prohibition from engaging in work in the banking and insurance sectors.

Through collaboration with the Ministry of Finance, the CBIRC supported the issuance of 550 billion yuan of local government special bonds in 20 provinces and regions over the past three years, helping more than 600 small and medium-sized banks replenish capital.