BEIJING Jan 5 China's banking regulator have
issued guidelines aimed at strengthening governance at the
country's emerging private banks in the latest move by
regulators to beef up risk management among financial services
The China Banking Regulatory Commission (CBRC) guidelines
call for private banks to exercise prudential supervision in
such areas as related-party transactions, while clearly defining
their business strategy and customers, according to a notice
published on the CBRC website on Thursday.
The CBRC also called for private banks to strengthen
shareholding management to ensure that the actual controllers of
equity are properly recognised.
In a separate statement, the regulator said that the
guidelines are aimed at "improving competitivness and risk
management" at private banks and promoting "overall stability".
China's financial regulators have issued a slew of
regulations and guidelines in recent weeks in an effort to
bolster risk management and supervision at the country's
lenders, insurers and other financial institutions.
The CBRC issued licences to five private banks in 2014 and
has since issued initial licences to a further 12 lenders.
(Reporting by Matthew Miller and Beijing Monitoring Desk;
Editing by Susan Thomas and David Goodman)