BEIJING, April 23 China's insurance regulator said on Sunday it will ramp up its supervision of insurance companies to make sure they comply with tighter risk controls and threatened to investigate executives who flout rules aimed at rooting out risk-taking.
The China Insurance Regulatory Commission said in a notice on its website it had told companies to strengthen controls in 10 areas, including liquidity risk and capital management, and implement 39 measures to stamp out risky investments and behaviour.
It did not specify what those 39 requirements are.
The statement is another show of resolve by Beijing in its latest efforts to tackle risk in the financial system in the world's second-largest economy. On Thursday, the regulator called on insurers to strengthen supervision of investment activity and correct market disorder.
Some insurers have taken sizeable stakes in market-listed companies in recent years, often funded by the issuance of high-yield, short-term universal life insurance and other investment products. (Reporting by Josephine Mason and Yawen Chen; Eding by Paul Tait)
Germany: better to wind down unprofitable banks than prop them up
BERLIN, June 26 It is better to wind down unprofitable banks than keep them afloat artificially and state aid should be used as little as possible in bankruptcy cases, Germany said on Monday after Italy started winding down two failed regional banks.