PBOC moves to regulate financial holding firms
Economist says there are still many private financial holding groups and companies beyond the control of authorities
The People’s Bank of China said in its 2017 Q4 monetary policy report that it will continue to promote the introduction of regulatory rules for financial holding companies, aiming to catch up on “the last piece of the puzzle” of overall financial supervision, Security Daily reported.
It will clarify regulatory requirements concerning market access, corporate governance, capital adequacy and related party transactions.
Lian Ping, chief economist at the Bank of Communications, said there are still many private financial holding groups and local financial holding companies beyond the regulation of the authorities.
At present, regulations on financial holding firms are subjected to the parent company’s industry. Thus, when there is a cross-sector business, there is a regulatory vacuum, causing problems such as double counting of capital.