Watchdog to boost banking, insurance

Source: Xinhua | 2019-01-30

Shanghai’s banking and insurance regulator says it is prepared to cope with the challenges facing the industries in 2019 and will endeavor to fend off financial risks while serving the real economy.

Risks in local banking and insurance are generally controllable but the situation remains complicated, the Shanghai office of the China Banking and Insurance Regulatory Commission said during a recent meeting.

Efforts will be made to enhance financial institutions’ service capabilities and the city is committed to providing more financial support for the country’s aim of building a well-off society, the watchdog said.

This year marks the first year that local authorities will undertake regulatory duties in both the banking and insurance sectors and the Shanghai office aims to promote high-quality development of the two industries while preventing systemic regional risks.

To curb credit, cross-financial and liquidity risks, regulators will tighten supervision of key areas such as Internet finance and peer-to-peer lending and will step up efforts to protect consumers.

The watchdog will also encourage more financial institutions to support private business as well as small and micro enterprises.

The regulator will guide local banks and insurance companies to adjust their business structures to be in line with the macro-economic situation, and will call for stricter compliance and differentiated development paths.