The person in charge of the relevant department of the China Banking Regulatory Commission answered the reporter's question about the first public disclosure of the list of major shareholders
Recently, the China Banking and Insurance Regulatory Commission made public the list of major shareholders in violation of laws and regulations by bank insurance institutions for the first time. The heads of relevant departments of the China Banking Regulatory Commission answered questions from reporters on related issues.
1. Why should we disclose major shareholders who violate laws and regulations?
The reason why the China Banking and Insurance Regulatory Commission has disclosed the major illegal shareholders of bank insurance institutions is mainly based on the following considerations.
One is to further clarify the direction of strict supervision. This disclosure is not only an important action by the China Banking and Insurance Regulatory Commission to rectify the shareholder chaos, but also an important measure to strengthen the corporate governance of bank insurance institutions. Since the establishment of the Banking and Insurance Regulatory Commission, it has continued to carry out shareholder equity and related party transaction rectification, decisively cleaned up high-risk institutions’ non-compliant shareholder equity, and formulated a series of institutional rules such as the “Interim Measures for Commercial Bank Equity Management” and “Insurance Company Equity Management Measures”. The purpose is to sample Govern both, clean the source, and promote the establishment of a standardized corporate governance structure. The purpose of this public disclosure is to convey the signal that the shareholders' equity will be further regulated. Any shareholder's shareholding in a bank insurance institution must correct its shareholding motives and do a good job of the bank's insurance institution. It cannot use shareholder status to seek undue benefits; it must participate in corporate governance in strict accordance with laws and regulations, and cannot illegally interfere in company operations. Whoever touches the legal “red line” and crosses the regulatory bottom line, the regulatory department will certainly spare no effort to investigate the end.
The second is to punish shareholders for illegal activities. In the early stage of regulatory inspection and risk disposal, we investigated and dealt with a number of shareholders who violated the law. Some shareholders illegally bought shares in bank insurance institutions and carried out connected transactions in violation of regulations. Some even regarded bank insurance institutions as "cash machines" and took illegal or illegal means to withdraw or embezzle bank insurance institutions funds. This disclosure is to make the illegal and untrustworthy image of the shareholders who have violated the law and regulations publicly available to the public and raise their illegal costs. At the same time, it will play a deterrent role to further purify the market environment and urge more shareholders of bank and insurance institutions to consciously restrict their actions.
The third is to play the role of market supervision. Market supervision is an important force that restricts the behavior of bank insurance institutions and their shareholders. The Basel Agreement regards market restraint as one of the three pillars and places it in the same important position as "supervision and inspection by regulatory authorities." This disclosure is also to guide the stakeholders of various banking and insurance institutions and the general public to jointly pay attention to and supervise the behavior of the shareholders of the institution, create a good atmosphere for the common supervision of the whole society, and make shareholders' violations of laws and regulations have no place to escape.
2. What is the main situation of the major shareholders who violate the law and regulations this time?
This disclosure adheres to the principle of compliance with laws and regulations, focusing on disclosing shareholders with serious violations of laws and regulations in recent years, facts about violations of laws and regulations, and particularly bad social impact.
There are a total of 38 major shareholders who violate the laws and regulations. The specific violations mainly include the following aspects: one is to carry out related transactions in violation of the rules or seek improper benefits; the second is to prepare or provide false materials; With administrative permission; Fourth, the source of capital for shareholding does not meet the regulatory requirements; Fifth, the single shareholder's shareholding exceeds the regulatory ratio limit; Sixth, the actual controller has illegal and criminal acts involving black and evil.
3. How does the disclosure of major violations of laws and regulations affect the bank's insurance institution?
This publicity was a new attempt, and we conducted a careful evaluation beforehand. We believe that the impact of this disclosure on the daily operations of the organization is positive. Disclosing major shareholders in violation of laws and regulations is also a warning education for the other shareholders of the organization and the organization itself, which is conducive to urging them to establish an honest and trustworthy concept, standardizing shareholders' behavior and management of equity affairs, and further consolidating the corporate governance foundation of the organization. In response to the announced violations of laws and regulations by shareholders, the China Banking and Insurance Regulatory Commission has taken regulatory measures such as restricting shareholder rights, revoking investment share permits, and removing illegal shares. This is beneficial to improving the quality of shareholders of bank insurance institutions and promoting the high-quality development of bank insurance institutions.
4. What considerations does the CBRC have for the next announcement
The China Banking Regulatory Commission will establish a normalized mechanism for disclosing major shareholders who violate laws and regulations, announce more shareholders who violate laws and regulations, and further improve disclosure methods to increase disclosure.
Here again, an important purpose of disclosure is to better play the role of market and social supervision. All parties in the financial market, intermediaries and all stakeholders are important forces to promote corporate governance of bank and insurance institutions. We hope that all parties will actively participate in the supervision of bank and insurance institutions. Everyone has more supervision, and there is more positive energy in the governance of bank insurance. Everyone "does not do good without small things", so that the bank insurance institutions and their shareholders can "do nothing but do bad things." At the same time, the Banking and Insurance Regulatory Commission will also urge bank insurance institutions to increase information disclosure, strengthen the protection of the legitimate rights and interests of stakeholders such as customers, employees, and counterparties, and encourage various intermediaries and institutional investors to actively pay attention to and help improve bank insurance institutions. Corporate governance urges bank insurance institutions to actively accept market and social supervision.
V. How does the China Banking Regulatory Commission further strengthen shareholder equity management
Banking insurance institutions have the characteristics of strong externality, high financial leverage, and serious information asymmetry. Unlike ordinary industrial and commercial enterprises, their shareholder equity must be strictly managed. In general, the China Banking Regulatory Commission will insist on "two unchanged". First, the positive orientation of encouraging social capital to participate in the reform of bank and insurance institutions and optimizing shareholder structure remains unchanged. The Banking and Insurance Regulatory Commission will continue to unblock the channels for social capital to invest in bank insurance institutions, optimize shareholder structure and enrich institutional capital, and focus on introducing strategic shareholders that focus on long-term institutional development, strong capital strength, and rich management experience. The second is to insist on severely punishing shareholders' violations of laws and regulations and standardizing corporate governance. The Banking and Insurance Regulatory Commission will continue to conduct in-depth investigations and rectification of the shareholders’ equity in violation of laws and regulations, clean up and standardize the shareholding relationship in accordance with the law, and resolutely punish shareholders for serious violations of the laws and regulations.
Specifically, the China Banking Regulatory Commission will achieve "three-pronged approach." One is to compact the responsibility of the main body of shareholders' equity management of the organization. Urge bank insurance institutions to select investors, strengthen shareholder qualification and share capital review, establish and improve shareholder equity and connected transaction management systems, and implement equity affairs management responsibilities. At the same time, continue to optimize the corporate governance operation mechanism of the board of directors and the board of supervisors, and create a good environment for shareholders to participate in corporate governance in accordance with laws and regulations. The second is to strengthen shareholder education and behavior constraints, strengthen shareholders' awareness of law-abiding, integrity and responsibility, and urge them to exercise shareholder rights and assume shareholder responsibilities in accordance with laws and regulations. The third is to improve the level of shareholders' equity supervision. Strengthen the penetration supervision of shareholders and sources of funds to ensure that shareholders’ qualifications and sources of funds are legal and compliant. Regulate equity pledges, share transfers and other behaviors, improve the related party transaction supervision system, and urge bank insurance institutions to make up for corporate governance loopholes and shortcomings in time to prevent shareholders from improperly interfering with the institution's normal operations.