China Banking Regulatory Commission (CBRC) recently drafted and amended five administrative regulations, cancelled a large number of administrative license items and further shortened the administrative licensing chain, firing the first shoot of the financial regulation reform.

 

CBRC amended the Measures of China Banking Regulatory Commission for the Implementation of Administrative Licensing Matters Concerning Chinese-funded Commercial Banks, Measures for the Administrative Licensing of Rural Small and Medium-sized Financial Institutions, Measures of China Banking Regulatory Commission for the Implementation of Administrative Licensing Items Concerning Foreign-funded Financial Institutions, and Measures of China Banking Regulatory Commission for the Implementation of Administrative Licensing Matters Concerning Non-bank Financial Institutions and drafted the Measures for the Implementation of Administrative Licensing of Trust Companies. These five regulations are now open for the public comments.

 

The trimmed administrative license items include: approval for the suspension of the institution preparation and business opening, approval for the institution degrading and temporary closure, the approval for the constitution amendment related to the pre-approval items such as alteration of name, equity, registered capital and business scope; approval for the alteration of organizational form of the non-bank financial institutions, approval of the credit card regulations, approval for Chinese-funded commercial banks and rural commercial banks to open the domestic securities investment trust business of qualified overseas institutional investors, and approval for the position transfer and office-taking of the senior staff members at the same level of the same institution of the policy banks, commercial banks and financial assets management companies. 

 

Source: Nanfang Daily, April 13, 2015