CBIRC Outlines Approach to Address Issues in Shadow Banking Sector
CBIRC issued a notice that discusses the outstanding issues for shadow banking and cross-sector financial businesses that have been discovered in the supervision and inspection of relevant institutions in recent years; it also puts forward work requirements for standardized rectification of these issues. In addition, CBIRC published a set of questions and answers (Q&A) on the issues in shadow banking and cross-sector financial businesses. CBIRC has also published a set of Q&A related to the measures taken by CBIRC to address the impact of COVID-19 pandemic.
The issues reported by CBIRC mainly focused on inadequate implementation of the "new asset management regulations" and "new financial management regulations," improper isolation of business risks, and ineffective control over non-standard investment businesses. While reporting the issue, CBIRC puts forward four requirements for regulating and rectifying shadow banking and cross-sector financial businesses. These requirements are improving ideological understanding and establishing a correct development concept; highlighting the focus of work and carrying out in-depth rectification work; strengthening prudent operation and promoting the transformation of business standards; and improving the quality and effectiveness of supervision work. CBIRC requires all bancassurance institutions to implement their main responsibilities and comprehensively investigate existing problems.
CBIRC emphasized that the regulatory authorities at all levels will maintain their regulatory power, adhere to supervision in accordance with the law, and persevere in cracking down on violations of laws and regulations in shadow banking and cross-financial businesses. It is necessary to standardize and rectify prominent problems in shadow banking and cross-sector financial businesses, further unblock financing channels, guide funds to serve the real economy with higher quality, and provide precise financial services for epidemic prevention and control, resumption of work and production, and real economy development.
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Keywords: Asia Pacific, China, Banking, Insurance, Shadow Banking, Q&A, COVID-19, CBIRC
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