The head of the relevant department of the China Banking Regulatory Commission said on the 24th that the China Banking Regulatory Commission will further strengthen corporate governance supervision, study and promulgate systems such as corporate governance guidelines for bank and insurance institutions, and related party transaction management measures to increase system binding power.
The person in charge said that through continuous efforts, corporate governance in China ’s banking and insurance industry has made great progress in recent years. However, the current status of corporate governance in the industry cannot meet the requirements of the high-quality development of China’s economy. Issues such as aberrant behavior of some institutional shareholders, lack of independence in the operation of the board of directors, and insufficient performance of independent directors and supervisors remain outstanding.
The person in charge emphasized that in the next step, the Banking and Insurance Regulatory Commission will base on China ’s industry practice and learn from international good practices to further strengthen corporate governance supervision. One is to further promote the organic integration of party leadership and corporate governance, and actively build a modern banking and insurance corporate governance mechanism with Chinese characteristics. Second is to further improve the regulatory regulations and information system. Sort out and integrate the supervisory system, build a more complete supervisory system, study and promulgate systems such as corporate governance guidelines for bank and insurance institutions, and related transaction management methods to improve the system’s binding power. Improve the functions of corporate governance evaluation, equity supervision, and related-party transaction supervision system. The third is to organize an annual corporate governance regulatory assessment. Supervise and guide the organization to strengthen the leadership of the party, strengthen the “three meetings and one layer” performance supervision, improve the incentive and restraint mechanism, strengthen the protection of stakeholders’ rights and interests, do a good job of information disclosure, and effectively improve the effectiveness of corporate governance. Fourth is Continue to strengthen supervision in key areas such as equity and related party transactions. Carry out special rectification of equity and related-party transactions, “look back”, establish bad records of equity management, and promote the implementation of equity custody of commercial banks. Strictly regulate the behavior of shareholders and effectively protect the legitimate rights and interests of shareholders.
The person in charge introduced that sound corporate governance is an important foundation and main guarantee for bank insurance institutions to prevent and resolve major risks and achieve long-term stable development. The China Banking Regulatory Commission attaches great importance to the supervision of corporate governance in the banking insurance industry, and systematically improves the corporate governance of the banking insurance industry in China. First, make up for the shortcomings of the regulatory system in a timely manner. A series of regulatory regulations have been issued to regulate the management of connected transactions of bank and insurance institutions and the management of independent directors. Second is a corporate governance regulatory evaluation system covering commercial banks and insurance companies has been established. In 2019, the “Interim Measures for the Corporate Governance Evaluation of Banking and Insurance Institutions (Trial)” will be publicly released. The third is In-depth development of special rectification work on equity and related party transactions of bank insurance institutions. Crack downDisorders such as equity holdings, false capital contributions, and profit transmission through illegal connected transactions. Fourth is Continue to strengthen the building of corporate governance and supervision capacity. Straighten out the system and mechanism of corporate governance supervision, develop information systems related to corporate governance supervision, and strengthen research and international exchanges on corporate governance issues in the industry.
(Originally titled “Banking and Insurance Regulatory Commission: Will Introduce and Introduce the System of Guidelines for Corporate Governance of Banking and Insurance Companies”)