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MNI (London)

China's principal banking and insurance regulator has tightened its grip over financial institutions' corporate governance by strengthening the presence of Communist Party leadership in those companies, according to the document published on the regulator's website Friday.

The China Banking and Insurance Regulatory Commission (CBIRC) required that institutions controlled by the state, especially institutions of small and medium size, state clearly the responsibilities of the party's committees in their corporate regulations. And the major decisions shall seek party approval before moving to the board meetings or management level, the document said.

The document mapped out the commitments of the regulator from 2020 to 2021 and vowed to "make substantial progress" in solving the corporate governance problems which are "the most prominent, most urgent, and most likely to affect the stable operation of the institutions", the document said.

The CBIRC also proposed other measures including strengthening the power of board directors and supervisors, stepping up the screening of shareholders and improving the quality of information disclosures of financial institutions.

MNI London Bureau | +44 203-865-3812 |
MNI London Bureau | +44 203-865-3812 |

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