Seven guiding documents were issued in the past few weeks by China Banking Regulatory Commission (CBRC) targeting areas where supervision has fallen short, says Xiakedao 侠客岛 People’s Daily Wechat column, predicting strong determination from newly appointed CBRC head Guo Shuqing 郭树清 to halt long-standing disorders and install ‘fences’ in banking industry.
This comes with recent highlights on family members of officials hired in banks, such as the ‘the wives club’, and illegal trading practices featuring embezzlement and poorly designed financial products. If fully implemented, reform gains will be mostly seen in small and medium-sized banks, financial advisories and non-bank institutions, adds Xiakedao. China Minsheng Bank and Huaxia bank have already been fined over C¥40 million for dozens of violations following the new guidance.