Wu Xiaoling: bank financing subsidiaries may form unfair competition in the fund industry

category:Finance
 Wu Xiaoling: bank financing subsidiaries may form unfair competition in the fund industry


Wu Xiaoling said that if a foreign-owned bank financing company is established by a joint venture between a foreign capital and a bank financing subsidiary, the combination of a strong management ability and a strong sales channel, coupled with the advantages of regulatory rules, will have a huge impact. At present, the supervision convenience enjoyed by bank financing subsidiaries should be the transitional arrangement required by the stable transformation of bank financing products. After the transition period, the financing subsidiaries should keep basically the same with the public funds in terms of supervision and rules. At present, most of the financial products of banks are shadow banking business generated by avoiding supervision, which hides many risks under the expectation of rigid payment. It can be said that it is a practical and realistic arrangement to let banks set up financing subsidiaries to issue net value products for standardized operation, and the asset management departments of banks gradually digest the irregular financing products and complete the standardization of bank financing business. In the transitional period, because there are many relations between the parent bank and the financial subsidiary when regulating the financial products, it is also reasonable for the CBRC to formulate the management measures and supervision of the financial subsidiary. However, the goal should be the integration of rules and regulations between bank financial subsidiaries and fund management companies. Otherwise, there will be the same business, different rules and regulatory arbitrage problems.

(originally titled Wu Xiaoling: bank financing subsidiaries may form unfair competition in the fund industry)