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China: Gov weighs major watchdog merger

By  |  January 28, 2018

China is considering a merger of its banking (CBRC) and insurance regulators (CIRC) as it attempts to counter financial risks in the world’s second-largest economy. The decision should be announced after the National People’s Congress begins its annual session on March 5, Bloomberg reported Friday, January 26.

According to Bloomberg, the possible regulatory shake-up suggests that China’s leadership wants to streamline its campaign to deleverage the economy, a top priority as Chinese president Xi Jinping began his second five-year term last year. Both banks and insurance companies have been involved in the rapid growth of China’s shadow banking sector, another key focus of the regulatory clampdown.

Any move to combine China’s insurance and banking regulators would be aimed at improving the efficiency of the financial reform process, said Tommy Xie, an economist at Oversea-Chinese Banking Corp. in Singapore. “The move could effectively reduce regulatory arbitrage and clear the gray areas in the financial markets,” he said.

Full Content: Bloomberg

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