Pan Gongsheng: The Central Bank will carry out the access management and continuous supervision of financial holding companies in a steady and orderly manner
Chinanews.com, Beijing, October 24 (Reporter Wei Xi) On October 24, Pan Gongsheng, Vice Governor of the People’s Bank of China and Director of the State Administration of Foreign Exchange, said that when he attended the "3rd Everbright-Guanghua Financial Holding Forum" in Beijing, Regulating the development of financial holding companies, giving play to their advantages in optimizing resource allocation, carrying out financial innovation, and effectively isolating risks, is a common practice in major international economies.
Major countries and regions have special legislation to clearly stipulate the implementation of access permits and supervision of financial holding companies. Especially after the 2008 international financial crisis, major countries and regions have established and improved from the perspective of preventing systemic financial risks and strengthening macro-prudential management. A regulatory system for financial holding companies suitable for the country was established.
Pan Gongsheng said that with the continuous improvement of economic and financial development and reform and opening up, my country has emerged as a financial holding company.
Some large financial institutions have formed integrated financial groups by investing in or setting up financial institutions in other industries; and some non-financial companies have invested and controlled many types of financial institutions, which have the characteristics of financial holding companies.
These institutions have taken full advantage of the group's overall advantages and actively explored in optimizing resource allocation and providing comprehensive financial services. Their comprehensive strength has been enhanced and their ability to serve the real economy has been greatly improved.
He said that, for a long time, my country has not included financial holding companies as a whole. Individual non-financial companies have blindly expanded into the financial industry, their shareholding structure and organizational structure are complicated, and there are even outstanding cross-shareholdings, false capital injections, and huge amounts of capital. Problems, risks have accumulated.
Pan Gongsheng pointed out that in September this year, the "Decision of the State Council on Implementing the Access Management of Financial Holding Companies" and the "Trial Measures for the Supervision and Management of Financial Holding Companies" were issued one after another, initially establishing a regulatory framework for financial holding companies and clarifying investment and holdings in non-financial companies. Financial holding companies formed by financial institutions are admitted in accordance with the law and are subject to supervision.
The regulatory framework follows the concept of macro-prudential management, insists on the principle that financial holding companies must be licensed to operate, adheres to the principle of overall separate operation, and conducts comprehensive, continuous and penetrating supervision of financial holding companies on the basis of consolidation.
Focus on regulating the qualifications of shareholders and the source of capital, requiring the source of investment funds to be true and legal, and clarifying the requirements for capital adequacy; clarifying the equity management system to achieve a simple, clear and penetrable equity structure for financial holding companies; improving corporate governance and related party transaction supervision and standardization Carry out related transactions; establish a unified and comprehensive risk management system and improve the risk "firewall" system.
Pan Gongsheng stated that the People’s Bank of China will, in accordance with the requirements for the modernization of the national governance system and governance capabilities, carry out the access management and continuous supervision of financial holding companies in a stable and orderly manner in accordance with laws and regulations, promote the standardized development of financial holding companies, and effectively improve the ability to serve the real economy. The level of harmony supports the smooth and orderly "double loop". (Finish)