China News Service, September 14th. Pan Gongsheng, deputy governor of the People's Bank of China and director of the State Administration of Foreign Exchange, said on the 14th that my country's financial industry implements a structure based on separate operations and separate supervision.
This pattern has been explored and formed in long-term practice, is in line with the current situation of my country's economic and financial development, and should be maintained.
The State Council Information Office held a regular briefing on the State Council’s policies on the 14th to introduce the situation of clarifying the access regulations of financial holding companies for the real economy.
At the meeting, a reporter asked whether the introduction of the "Financial Control Measures" (Note: "Trial Measures for the Supervision and Management of Financial Holding Companies") means that the pattern of separate operation and separate supervision in my country will change in the future?
In response, Pan Gongsheng said that my country's financial industry has implemented a structure based on separate operation and separate supervision.
This pattern has been explored and formed in long-term practice, is in line with the current situation of my country's economic and financial development, and should be maintained.
In addition, Pan Gongsheng pointed out that in the world, most major economies also adopt the financial holding company model, with financial subsidiaries implementing separate operations.
The arrangement of this institutional framework makes the equity structure and organizational structure simpler, clearer, and identifiable, which is conducive to better isolation of risks, strengthens the group's overall corporate governance and risk management, and also meets the requirements of modern financial supervision.
Pan Gongsheng said that the implementation of the "Trial Measures for the Supervision and Management of Financial Holding Companies" is actually a complement to the current structure of my country's financial industry that is dominated by separate operation and separate supervision.
There are some clear statements in the financial control measures issued by the People's Bank of China.
Financial holding companies conduct unified equity investment and management, and financial institutions controlled by them operate specific financial businesses and insist on separate operations.
From the perspective of macro-prudential management, the People's Bank of China implements overall supervision of financial holding companies.
The financial management department shall, in accordance with the division of responsibilities, implement separate supervision of financial institutions controlled by financial holding companies.
From these expressions, we can clearly see that the implementation of the "Financial Control Measures" does not change my country's current financial industry's structure of separate operation and separate supervision, and it is a perfect and supplement to the current structure.
The People's Bank of China will also establish a cross-departmental working mechanism with relevant departments to strengthen supervisory collaboration and information sharing, form a supervisory force, and jointly promote the standardized and healthy development of financial holding companies.