Chinese banking and insurance regulators to be merged
March 13, 2018
Banking and insurance regulators are set to be merged as sweeping changes are announced by the Chinese government.
The plan would see the Banking Regulatory Commission (CBRC) combined with the China Insurance Regulatory Commission (CIRC) to create one regulatory overseeing the banking and insurance industry.
Some roles will be transferred to the central bank, which will take the role of making news laws and regulations.
The reforms in this area are needed so that the government can take control and reduce risk to the financial industry from excessive borrowing and other activities.
Loopholes in the system also need to be closed by providing new regulations as China’s economy develops.
Xi Jinping’s top economic advisor Liu He said the plans would be “profound” and would help reduce inefficiencies across the government agencies.
“Deepening the reform of the party and state institutions is an inevitable requirement for strengthening the long-term governance of the party,” Mr Liu said.
Over the years there has been concern about Chinese companies and state-owned enterprises even local governments increasing debt levels. These reforms will help to shape new regulations to reduce the risks in the future and cement China’s economic potential.