In order to promote the standardized development of financial holding companies, effectively prevent and control financial risks, and better serve the real economy, the people's Bank of China has recently issued the Trial Measures for the supervision and management of financial holding companies in accordance with the decision of the State Council on the implementation of access management of financial holding companies (GF [2020] No. 12, hereinafter referred to as the access decision) (order of the people's Bank of China [2020] No. 4, hereinafter referred to as the "financial control measures"), which shall come into force on November 1, 2020.
The Party Central Committee and the State Council attach great importance to the supervision of financial holding companies, clearly require the standardization of comprehensive financial operation and the combination of industry and finance, strengthen the overall supervision of financial holding companies, and accelerate the completion of the shortcomings of the regulatory system. The promulgation and implementation of the financial control measures is an important measure to implement the decision and deployment of the CPC Central Committee and the State Council. The financial control measures follow the concept of macro Prudential Management, on the basis of consolidated statements, and in accordance with the principles of comprehensive, continuous and penetrating, the financial holding companies formed by investment and holding of non-financial enterprises are admitted and supervised according to law, so as to standardize the operation behavior of financial holding companies. The implementation of the "financial control measures" will continue to adhere to the principle of giving priority to the overall separate operation of the financial industry, and separate the industrial sector from the financial sector in terms of system, which is conducive to the sustained and healthy development of financial holding companies, the prevention of cross infection of risks, and the further promotion of a virtuous economic and financial cycle.
The financial control measures have detailed the conditions and procedures for the access of financial holding companies in the access decision, and further clarified the scope and subject of supervision. The people's Bank of China supervises the financial holding companies, and the financial management departments supervise the financial institutions held by financial holding companies according to the division of financial supervision responsibilities. The "financial control measures" put forward regulatory requirements on key links such as qualification conditions of shareholders, sources and utilization of funds, capital adequacy requirements, equity structure, corporate governance, related party transactions, risk management system and risk "firewall" system. For institutions that have established financial holding companies before the implementation of the financial control measures, but have not met the regulatory requirements of the financial control measures, we should reasonably set up the transitional period arrangement, grasp the rhythm and opportunity, and gradually digest the stock.
In the next step, the people's Bank of China will follow the principles of openness, fairness and justice, carry out access management and continuous supervision of financial holding companies in accordance with the law, strengthen regulatory cooperation with relevant departments, promote the healthy and orderly development of financial holding companies, and enhance the ability to serve the high-quality development of the economy.
