Banking, insurance regulators’ merge mulled

In a bid to reduce financial risk China is considering the merging of the China Banking Regulatory Commission (CBRC) and the China Insurance Regulatory Commission (CIRC).

A report in the South China Morning Post states that proposals were being considered to amalgamate the CIRC, which has been without a leader since its chairman was put under investigation for corruption in April, and the CBRC, which is chaired by Guo Shuqing.

According to media reports if the merger goes ahead, the consolidated agency, along with the central bank and China Securities Regulatory Commission, would report to the Financial Stability and Development Committee, a new agency set up in November 2017 at president Xi Jinping’s request.

Regulators oversee different parts of China’s complex financial sector, and no single regulator has a complete picture of capital movements in the system. That complicates the job of authorities to catch market manipulators who secretly divert funds to risky financial products as they chase higher returns.