Today (14th) morning, the State Council Information Office held a regular briefing on the State Council’s policies. Pan Gongsheng, Vice Governor of the People’s Bank of China and Director of the State Administration of Foreign Exchange, etc. introduced the newly released”Regarding the Implementation of the Access Management of Financial Holding Companies Decision” and the “Trial Measures for the Supervision and Administration of Financial Holding Companies”.
On September 13, the State Council issued the”Decision on the Implementation of Access Management for Financial Holding Companies” (hereinafter referred to as the”Access Decision”). With the approval of the Party Central Committee and the State Council, the People’s Bank of China issued the” Trial Measures for the Supervision and Administration of Financial Holding Companies (hereinafter referred to as the “Financial Control Measures”).
The”Access Decision” implements access management for financial holding companies. Non-financial enterprises, natural persons, and recognized legal persons within China hold or actually control two or more different types of financial institutions. Under the prescribed circumstances, an application shall be submitted to the People’s Bank of China to establish a financial holding company upon approval.
The”Access Decision” clarifies the access conditions and procedures of financial holding companies. The”Access Decision” stipulates that the establishment of a financial holding company shall comply with the”Access” in terms of registered capital, shareholders, actual controllers, directors, supervisors and senior managers, the ability to supplement capital, and the organization and risk management, and internal control systems. The Decision provides. The People’s Bank of China shall make a decision within 6 months from the date of accepting the application for establishing a financial holding company. Before the”Access Decision” is implemented, there are circumstances that should apply for the establishment of a financial holding company, and it shall apply for the establishment of a financial holding company within 12 months from the date of implementation of the”Access Decision”. A financial holding company changes its name, domicile, registered capital, shareholders holding more than 5%of the equity, and actual controller, revises the company’s articles of association, invests in other financial institutions, and increases or decreases the capital contribution or shareholding ratio of the financial institution it controls, resulting in control Change or loss of rights, division, merger, dissolution or bankruptcy, should apply to the People’s Bank of China. The People’s Bank of China shall make a decision within 3 months from the date of acceptance.
Pan Gongsheng introduced the scope of application of the”Financial Control Measures”. The”Financial Control Measures” clarify that financial holding companies that meet the following conditions will be included in the supervision:first, the controlling shareholder or actual controller is a domestic non-financial enterprise, natural person or recognized legal person; second, it actually controls two or more types of financial Institutions; third, the total assets or entrusted management assets of financial institutions under substantial control have reached the scale specified in the”Financial Control Measures”, or a financial holding company needs to be established in accordance with the requirements of macro-prudential supervision.
The”Access Decision” and the”Financial Control Measures” are based on the development status of my country’s financial holding companies in recent years, and are formulated by relevant departments to regulate the operation and management of financial holding companies, prevent risks, and promote a virtuous economic and financial cycle . (CCTV reporter Dong Bin Yang Yi Jiang Haoyu)