China Banking and Insurance Regulatory Commission: promoting the effective transformation of household savings into long-term capital market funds through multiple channels

 China Banking and Insurance Regulatory Commission: promoting the effective transformation of household savings into long-term capital market funds through multiple channels

1u3001 General requirements

uff081uff09 Guiding ideology

uff082uff09 Basic principles

u2014u2014Adhere to optimizing the structure. We will improve the financial institution system, market system and product system, guide more financial resources to be allocated to key areas and weak links in economic and social development, and improve the efficiency of financial services.

u2014u2014Adhere to market orientation. Follow the law of financial development and give full play to the decisive role of the market in the allocation of financial resources.

u2014u2014Adhere to technology empowerment. Change the development mode and provide strong support for the innovation and development of bank insurance institutions.

uff083uff09 Development goals

By 2025, the financial structure will be more optimized and a multi-level, wide-ranging and differentiated banking and insurance institution system will be formed. The level of corporate governance continued to improve, and a modern financial enterprise system with Chinese characteristics was basically established. The ability to develop personalized, differentiated and customized products has been significantly enhanced to form a financial product system that effectively meets the market demand. Credit market, insurance market, trust market, financial leasing market and non-performing asset market were further improved. Financial risks in key areas have been effectively dealt with, and the modernization of banking and insurance regulatory system and regulatory capacity has achieved remarkable results.

2u3001 Promote the formation of a multi-level, wide coverage and differentiated banking and insurance institution system

uff084uff09 Optimize the functional positioning of large and medium-sized banks. Development oriented and policy oriented banks should define and refine their business boundaries, strictly implement the assigned procedures, implement the requirements of sub account management and classified accounting for development oriented policy oriented and self operating businesses, strengthen regulatory constraints, capital constraints and market constraints, and effectively serve major national strategies and weak links. Large commercial banks should make great efforts to strengthen the management system, strengthen the service integration, process connection and system integration of business lines and subsidiaries, and improve the comprehensive financial service level according to their own development strategy, business characteristics and customer needs. With the help of modern scientific and technological means to develop online business and enhance the ability of inclusive financial services. The joint-stock commercial banks should adhere to the differentiated market positioning, realize the characteristic operation, form the business model with comparative advantage, and constantly improve the core competitiveness.

uff085uff09 Strengthen the financial service capacity of local small and medium-sized banks. Urban commercial banks should establish a prudent management culture, reasonably determine the operation radius, and serve local economy, small and micro enterprises and urban and rural residents. Rural small and medium-sized banks should adhere to the orientation of supporting agriculture and supporting small markets, enhance county service functions, support the strategy of rural revitalization, and help win precise poverty alleviation. On the premise of maintaining the overall stability of the legal person status in the county, the Rural Credit Union and the rural cooperative bank should be reformed under the joint-stock system according to local conditions. We will optimize community financial services, encourage banking institutions to extend their service networks online and offline, and provide convenient and efficient financial services for community business residents. We will continue to promote the establishment of qualified private banks. We will steadily promote the pilot projects of investment management type rural banks and multi county and one bank type rural banks.

uff086uff09 Strengthen the risk guarantee function of insurance institutions. Insurance institutions should return to the source of risk protection, play the role of economic shock absorber and social stabilizer, and better provide risk protection and long-term stable funds for economic and social development. Support the development of mutual insurance, health and endowment insurance institutions. Promote the construction of a new insurance intermediary market system. We will improve the mechanism for spreading the risk of agricultural insurance disasters and accelerate the establishment of Chinas agricultural reinsurance company. We will strengthen the supply capacity of the export credit insurance market, promote the construction of the reinsurance market, and expand the scope of catastrophe insurance pilot projects. Insurance institutions should improve their professional capabilities in risk pricing, refined management, disaster prevention and loss prevention, asset liability management, etc., so as to accurately and efficiently meet the insurance needs of the people in various fields.

uff087uff09 Actively promote the development of insurance institutions of foreign banks. Insurance institutions of foreign banks should give full play to the advantages of overseas parent companies in product research and development, talent and technology, innovate business models, enrich the supply of financial services, and enhance market vitality and competitiveness. Encourage foreign banks to strengthen the linkage with the parent bank, develop special businesses such as trade financing, SME financing, bulk commodity financing, wealth management, and actively serve foreign trade and investment. The insurance institutions of foreign banks should optimize the distribution of outlets and reasonably establish branches in the central and western regions and the northeast.

uff088uff09 To cultivate the characteristic advantages of non bank financial institutions. Support qualified commercial banks to set up financial subsidiaries, promote the transformation of financial management business norms, and promote the access of financial funds to the real economy in a legal and standardized form. Trust companies should return to the function of entrusted by others, financing on behalf of others, and actively develop service trust, wealth management trust, charity trust and other original businesses. Financial asset management companies should strengthen the main business of non-performing asset disposal, reasonably expand the investment banking business related to enterprise restructuring, such as merger and reorganization, bankruptcy reorganization, mezzanine investment, bridge financing, phased shareholding, etc. Encourage financial companies of enterprise groups to strengthen the centralized management of group funds and improve the efficiency of the use of group funds. Financial leasing companies are encouraged to expand the scope and depth of the leased goods and optimize financial leasing services.

uff089uff09 Give full play to the important role of bank insurance institutions in optimizing the financing structure. Banking and insurance institutions should improve the service system suitable for the development of direct financing, provide supporting support for direct financing in various ways, and increase the proportion of direct financing. Give full play to the direct financing function of financial management, insurance, trust and other products, cultivate the concept of value investment and long-term investment, and improve the structure of investors in the capital market. Vigorously develop enterprise annuity, occupational annuity, all kinds of health and endowment insurance businesses, and promote the effective transformation of residents savings into long-term capital market funds through multiple channels. All kinds of qualified investment institutions are encouraged to participate in the market-oriented and legal debt to equity swap.

3u3001 Improve the financial product system serving the real economy and the peoples life needs

uff0810uff09 Actively develop financial products to support strategic emerging industries, advanced manufacturing industries and technological innovation. We will increase financial support to provide high-quality financial services to enhance the basic capacity of the industry and the level of the industrial chain. We will expand medium - and long-term loans to strategic emerging industries and advanced manufacturing industries. We will encourage insurance funds to invest in industrial funds in a market-oriented way and increase support for strategic emerging industries and advanced manufacturing industries. We will give full play to the role of Chinas insurance investment funds and vigorously support national strategies. Banking financial institutions are encouraged to develop science and technology financial business in combination with the characteristics of science and technology enterprises, and carry out external investment and loan linkage steadily. We will support banking financial institutions to grant medium - and long-term technology R & D loans with intellectual property as pledge to science and technology enterprises, and pilot medium - and long-term credit loans for innovation and Entrepreneurship of high-end talents selected in the national talent plan. Encourage insurance institutions to innovate and develop science and technology insurance, and promote the pilot of the first set of major technical equipment insurance and the first batch application of new materials insurance compensation mechanism. Support insurance funds and qualified asset management products to invest in venture capital funds and equity investment funds for science and technology enterprises, and expand financing channels for science and technology enterprises.

uff0811uff09 Increase the innovation of financial products of private enterprises and small and micro enterprises. Banking and insurance institutions should treat all kinds of ownership enterprises equally and fairly according to the principle of competition neutrality. We will increase support for private enterprises that are in line with the direction of industrial development, whose main business is relatively concentrated in the real economy, whose technology is advanced, whose products have a market, but who are temporarily facing difficulties. Encourage banking financial institutions to strengthen the resource guarantee of serving private enterprises and small and micro enterprises by means of separate credit plan and preferential internal fund transfer pricing. We will increase support for private enterprises and small and micro enterprises to renew loans, and increase the proportion of credit loans and medium - and long-term loans. Actively and steadily develop supply chain financial services. To explore the application of financial technology in customer credit evaluation, credit access, risk management and other aspects, and effectively improve the coverage of financial services. Under the premise of controllable risk, develop loan guarantee insurance for private enterprises and small and micro enterprises. Support the bank to cooperate with the state financing guarantee fund and the state agricultural credit guarantee alliance, clarify the risk sharing proportion, and reduce the guarantee cost and enterprise financing cost.

uff0812uff09 We will optimize the supply of financial products for agriculture, rural areas and farmers. Encourage banking financial institutions to increase credit investment in the field of agriculture, rural areas and farmers. We will expand the scope of rural collaterals, study and promote the mortgage business of the right to operate contracted land in rural areas, and actively and steadily promote the pilot projects of mortgage loans for farmers housing property rights and the right to use collectively operated construction land. Combined with the seasonal characteristics and production cycle of agricultural production, innovate the three rural small loan products, meet the financing needs of different types and scales of agricultural business entities, and actively support the development of agricultural characteristics, fine products and ecology. We will improve financial leasing services for large-scale agricultural machinery, agricultural production facilities and processing equipment. We will continue to expand the scope of agricultural insurance, increase products and raise standards, and promote trials of full cost insurance and income insurance for important agricultural products such as rice, wheat and corn.

uff0813uff09 Vigorously develop green finance. Banking financial institutions should establish and improve the environmental and social risk management system, incorporate the environmental, social and governance requirements into the whole credit process, and strengthen the disclosure of environmental, social and governance information and the interaction with stakeholders. Financial institutions of the banking industry are encouraged to improve the professional service ability and risk prevention and control ability of green finance through the establishment of green finance business department and green sub branches. Actively develop the securitization of energy efficiency credit, green bonds and green credit assets, steadily carry out the financing of environmental rights and interests, ecological compensation mortgage and pledge, set up green development fund in accordance with laws and regulations, explore innovative green financial products such as carbon finance, climate bonds, blue bonds, environmental pollution liability insurance, climate insurance, support the development of green, low-carbon and circular economy, and resolutely fight pollution The battle of pollution control.

uff0814uff09 We will enrich the supply of financial products for peoples livelihood. We will strengthen the construction of the third pillar of endowment insurance, encourage insurance institutions to develop diversified endowment insurance products that meet consumers lifelong and long-term needs, and support banks and trusts to develop endowment savings and wealth management products. Insurance institutions are encouraged to provide health insurance products that cover the life cycle of the masses and meet the needs of different income groups, including medical treatment, disease, rehabilitation, care and childbirth. We will support banking and insurance institutions to develop exclusive credit and insurance products in response to consumer demand in the fields of home economics, childcare, education, culture, tourism and sports. We will accelerate the development of liability insurance in areas such as medical and health care, safety in production, and food safety. We will promote comprehensive reform of auto insurance and improve the mechanism for the formation of auto insurance terms and rates.

uff0815uff09 We will strengthen scientific and technological support for financial product innovation. Banking and insurance institutions should lay a solid foundation for information technology, establish organizational structure, incentive mechanism and operation mode to adapt to the development of financial technology, and do a good job in relevant technology, data and talent reserves. We will make full use of emerging technologies such as artificial intelligence, big data, cloud computing, blockchain and biometrics to improve service quality, reduce service costs and strengthen business management. Vigorously develop mobile internet terminal business and explore the construction of Internet financial service platform. Strengthen the construction of network security, strengthen the protection of customer information security, and improve the level of emergency response and disaster recovery.

uff0816uff09 Actively and steadily promote the disposal of problematic financial institutions. We will focus on overall planning and coordinated promotion, and consolidate the responsibilities of financial institutions, local governments and financial management departments. Promote the formulation and implementation of recovery and disposal plans, and grasp the balance between strengthening market discipline, preventing moral hazard and maintaining financial stability. For different institutions, it is necessary to implement classified policies, follow the market rules, and implement them on the basis of full assessment of potential impact, so as to prevent the risk of disposal risk. We should take multiple measures to deepen the reform and risk resolution of high-risk small and medium-sized institutions, and take such measures as the disposal of non-performing assets, direct capital injection and reorganization, interbank acquisition and merger, the establishment of disposal funds, the establishment of bridge banks, the introduction of new investors and market exit. We will strengthen the collection of assets, safeguard the legitimate claims of institutions, and minimize losses. We will promote the establishment of a culture of prudence, enhance risk awareness and compliance awareness, and enhance the systems binding force and execution.

uff0817uff09 Orderly resolve shadow banking risks. The banking and insurance institutions shall implement the guidance on regulating the asset management business of financial institutions, and promote the smooth transition and standardized transformation of business. Gradually clean up and compress the non-standard asset investment of off balance sheet financing, on balance sheet special purpose vehicle investment, inter-bank financing and other business scale, and strictly control the bank credit channel business. Consistent, penetrating and full coverage risk management shall be implemented according to the nature of the business, and the corresponding requirements for risk classification, capital occupation and provision provision shall be strictly applied. Insurance institutions should continue to clean up illegal behaviors such as multi-level nested investment, related party transactions and leverage.

uff0818uff09 Strengthen risk prevention and control in key areas. Banking and insurance institutions should implement the positioning of no speculation in real estate, strictly implement the requirements of real estate financial supervision, prevent the illegal inflow of funds into the real estate market, curb the excessive growth of residents leverage ratio, and promote the healthy and stable development of the real estate market. We will continue to do a good job in resolving the hidden debt risks of local governments, clarify the debt repayment responsibilities of existing debts in accordance with the law, standardize and support the issuance of local government bonds and supporting financing, and prohibit illegal and illegal provision of new financing. We will increase the screening and monitoring of the risks of enterprises operating in high debt and with blind expansion out of their main businesses. We will prudently resolve the credit risk of group customers, orderly exit zombie enterprises and promote structural deleveraging of enterprise departments.

uff0819uff09 We will vigorously punish illegal financial activities. We will resolutely clean up and ban institutions and activities that engage in financial business without approval. Adhere to the principle of combination of attack and prevention and treatment of both symptoms and root causes, and promote the establishment and improvement of the prevention and control and strike system for the whole industrial chain and ecological chain of illegal financial activities. We will strengthen monitoring and early warning, focus on early and small-scale development, guide local governments to handle cases of illegal fund-raising, resolutely curb incremental risks, and steadily resolve stock risks. Give full play to the positive role of big data, artificial intelligence and other technologies in combating illegal fund-raising, anti money laundering and anti fraud. We will carry out in-depth special rectification of Internet financial risks and promote the healthy exit of non-conforming online lending institutions. We will build a firewall of risks and strictly prevent the risk of illegal financial activities from infecting and infiltrating banks and insurance institutions.

uff0820uff09 Enhance the ability to resist risks. Banking financial institutions should establish the concept of prudent operation, strengthen the construction of internal control and compliance and comprehensive risk management, accurately classify asset risk categories and provide sufficient provisions. Bank insurance institutions should formulate medium and long-term capital planning, replenish capital through multiple channels, innovate capital replenishment tools in accordance with laws and regulations, strengthen capital management, and play the role of capital constraints on asset expansion and resource allocation optimization. For the insurance institution, the original equity shall share the losses reasonably in accordance with the law by means of reduction of shares, deduction of future earnings, etc., other specific creditors rights with loss absorption function shall be written down or converted into shares, and the salary and bonus delayed by senior executives and relevant responsible persons shall be deducted in accordance with the law. Global systemically important banks should make capital replenishment arrangements in a forward-looking way and enhance their total loss absorption capacity.

5u3001 Establish and improve the modern financial enterprise system with Chinese characteristics

uff0821uff09 Comprehensively strengthen the leadership of the party. The insurance institutions of state-owned and state-owned holding banks should adhere to the basic principle of two consistency, integrate the leadership of the party into all aspects of corporate governance, refer to the international good practice of corporate governance, and strive to explore the best corporate governance experience with Chinese characteristics. The partys leadership should strictly implement democratic centralism and adhere to the principles of collective leadership, democratic centralism, individual deliberation and conference decision. We should integrate the leadership of the party with the modern enterprise system, improve the two-way entry and cross position leadership system, adhere to the research and discussion of the party organization as the pre procedure of major issues decision-making, and constantly improve the decision-making implementation and supervision mechanism of equal rights and responsibilities, coordinated operation, mutual support and effective checks and balances.

uff0822uff09 Strictly regulate the equity management. Banking and insurance institutions should dynamically optimize the equity structure in accordance with the principles of excellent qualification, openness and transparency. Strictly examine the qualification of shareholders and strengthen the penetration management of shareholders and actual controllers. We will standardize the behavior of shareholders, punish the illegal acquisition of bank stock rights, the holding of shares on behalf of shareholders, the concealment of shareholders, and the illegal acquisition and occupation of bank funds through connected transactions. As for the problem shareholders, punishment measures must be taken according to law, including restricting the rights of shareholders, ordering the transfer of shares, confiscating illegal income, etc. It is necessary to strengthen the equity management, determine the reasonable pledge proportion, and disclose the equity pledge to the board of directors, the board of supervisors and the internal organization. Banking and insurance institutions should strengthen the supervision and management of shareholders equity, promote centralized registration and custody, and regulate the pledge, change and capital increase of equity.

uff0823uff09 Strengthen the construction of three meetings and one floor. The banking and insurance institutions should give full play to the role of the shareholders meeting and continue to promote and improve the corporate governance mechanism. On the basis of protecting the legitimate rights and interests of shareholders according to law, we should strictly prevent major shareholders and concerted actors from manipulating the operation and management of institutions. We will optimize the size and structure of the board of directors, improve the mechanism for selecting and appointing directors, and restrict shareholders from nominating both equity directors and independent directors, so as to ensure that independent directors are truly independent and perform their duties in accordance with the law. Enhance the professionalism and performance ability of the special committees under the board of directors. We should strengthen the functions of the board of supervisors, increase the proportion of full-time supervisors, improve the efficiency of external supervisors, improve the supervision methods, and make full use of internal and external audit forces to carry out supervision and inspection. We will standardize the selection of senior executives, increase the means and channels of selection and employment, improve the mechanism of checks and balances within the organization, strengthen market constraints, and strictly prevent insider control. Improve the evaluation, supervision, inspection and professional training of the performance ability of the board of directors, the board of supervisors and the senior management, and strengthen the accountability for the dereliction or improper performance.

uff0824uff09 Optimize the incentive and restraint mechanism. Banking and insurance institutions should establish a market-oriented medium and long-term incentive and restraint mechanism, optimize the salary structure, improve the management system of salary delay payment, recourse and deduction, and improve the accountability system. Carry out the pilot of employee shareholding in accordance with the law and regulations. Fully and timely disclose the three meetings and one level performance behavior and major business situation of the company, and ensure that the financial data are open and transparent within the legal scope. Establish and improve the complaint response mechanism of stakeholders, and accept the supervision and restriction of investors and other stakeholders.

uff0825uff09 We will strengthen the protection of the legitimate rights and interests of financial consumers. Banking and insurance institutions should take the initiative to fulfill their social responsibilities, consolidate the main responsibility of consumer rights protection, promote the establishment of Consumer Rights Protection Committee at the board level, specify the specific departments to perform the responsibility of consumer rights protection, and establish and improve the relevant working mechanism, assessment mechanism and supervision mechanism of consumer rights protection. We will continue to optimize the handling process of consumer complaints and actively participate in the diversified resolution of financial disputes. We will improve the traceability system for sales activities and fully disclose information about financial products and services. We should strengthen the publicity and education of financial consumers and improve their financial literacy and risk awareness. Improve the access, supervision and evaluation mechanism for third-party cooperation institutions.

6u3001 To achieve a higher level of opening up

uff0826uff09 We will deepen the opening up of the banking and insurance industries. We will continue to promote reform and development through opening up, implement major measures to open up the financial industry to the outside world, implement the pre access national treatment and negative list management model, treat all entities at home and abroad fairly in accordance with the principle of internal and external consistency, and relax market access conditions and business scope for insurance institutions of foreign banks.

uff0827uff09 Introduce advanced international professional institutions. Attract foreign financial institutions in wealth management, non-performing asset disposal, professional factoring, consumer finance, endowment insurance, health insurance and other fields to enter the domestic market. Overseas financial institutions are encouraged to participate in the establishment and investment of financial subsidiaries of commercial banks, and overseas asset management institutions are allowed to establish joint ventures with subsidiaries of Chinese banks or insurance companies to establish financial companies controlled by foreign parties. Support the insurance institutions of foreign banks to reasonably arrange their subsidiaries, branches, subsidiaries and other branches according to their business needs, and expand their business scope.

uff0828uff09 Support bank insurance institutions to go global. It supports the orderly development of qualified bancassurance institutions in overseas Chinese funded enterprises, and promotes the level of financial services and international competitiveness around the one belt and one road initiative. Learn from and adopt international standards, support enterprises to go out green and low-carbon, and promote the construction of a community of shared future for mankind. We will further improve the overseas risk management mechanism and the country risk monitoring and early warning system, and strengthen compliance management in key areas such as anti money laundering, anti terrorist financing, anti tax evasion and anti-corruption.

7u3001 Strengthen financial supervision and clean financial construction

uff0829uff09 Strictly supervise according to laws and regulations. Accelerate the construction of supervision system, adhere to the principle that substance is more important than form and the same standard for similar business, improve the supervision system in time and make up for the short board of supervision. We will study and formulate regulatory systems for financial technology companies, and strengthen supervision over emerging financial businesses and formats. We should make full use of modern science and technology to enrich regulatory means, strengthen the monitoring of capital flow, and improve the ability to identify, prevent and resolve cross industry, cross market and cross-border cross-border financial risks. We will deepen the simplification of administration and decentralization of powers, and improve the standardization and facilitation of administrative examination and approval. We will strengthen supervision and administration in accordance with the law, seriously investigate and punish illegal behaviors of banking and insurance institutions, strengthen accountability and punishment of information disclosure, and effectively solve the problem of low cost of illegal behaviors in the financial sector. Strengthen the coordination of financial supervision, highlight the key points of supervision, grasp the strength and rhythm, strengthen the coordination and cooperation with macro prudential policies, realize the organic combination of macro Prudential Management and micro prudential supervision, gradually improve the central and local financial supervision mechanisms, and form a joint force of supervision.

uff0830uff09 We will comprehensively promote the development of clean finance. We will improve the standards for honest and clean practices, and promote the institutional construction of mechanisms that dare not, do not, and do not want to corrupt. We will consolidate, expand and implement the spiritual achievements of the eight regulations of the Central Committee, deepen work style construction, and resolutely combat formalism and bureaucracy. We should advocate a clean financial culture, strictly implement discipline requirements such as separation of public and private sectors, performance avoidance, and non-public communication reports, and achieve zero material exchanges with regulatory objects, so as to build a good Pro Qing regulatory relationship. Promote strong supervision with strong supervision, focus on key posts and important personnel, carry out detailed daily supervision, and seriously investigate and deal with all kinds of illegal cases. We will effectively improve our governance capacity and cultivate a high-quality professional supervision team that is loyal, clean and responsible.

The regulatory authorities at all levels and the banking and insurance institutions should attach great importance to promoting the high-quality development of the banking and insurance industry, clarify the division of tasks, implement the responsibilities, and ensure that the key work identified in this opinion is carried out in an orderly manner and achieved actual results.

December 30, 2019

(this document will be sent to the branches of bancassurance and insurance institutions of local legal person banks)