BEIJING, Dec. 1 (Xinhua) -- China Banking and Insurance Regulatory Commission (CBIRC) unveiled the new version of rules on supervision and appraisal of corporate governance of banking and insurance institutions on Wednesday, reported Xinhua Finance.
The new rules particularly optimized provisions over the corporate governance-related appraisal objects, appraisal mechanisms, appraisal indicators, and appraisal results application.
It puts rural cooperative banks, financial asset management companies, financial leasing companies, finance firms of enterprise groups, auto finance companies, consumer finance companies and money brokerage companies into the basket of objects under corporate governance-related supervision and appraisal.
Through improvement in appraisal mechanism, CBIRC will distribute appraisal resources pursuant to the appraisal results and ensure in principle at least one appraisal for each banking or insurance institution per year.
By taking into consideration of the corporate governance rules released in past two years, the rules place the focus of appraisal on issues such as big shareholders' illegal intervention and insider control, and further enrich key indicators relative to equity of shareholders, related party transactions and nomination and performance of directors, supervisors and senior executives to make the assessment indicators more scientific.
It reinforces application of the appraisal results and under the premise of appraisal results-based classified supervision measures, the rules require the banking and insurance regulator to include related institutions rated as D and below in corporate governance in the list of objects under key supervision. By early intervention and timely correction of significant risks and hidden dangers of these institutions, the rules aim to prevent and guard against risk spreading.
Upon releasing of the new rules, CBIRC will kick off the 2023 appraisal work of the banking and insurance institutions to strengthen their corporate governance and healthy development.
According to CBIRC's announcement, the rules came into effect on November 28, 2022. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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