BEIJING, Jan 5 (Reuters) - China’s banking regulator have issued guidelines aimed at strengthening governance at the country’s emerging private banks in the latest move by regulators to beef up risk management among financial services firms.
The China Banking Regulatory Commission (CBRC) guidelines call for private banks to exercise prudential supervision in such areas as related-party transactions, while clearly defining their business strategy and customers, according to a notice published on the CBRC website on Thursday.
The CBRC also called for private banks to strengthen shareholding management to ensure that the actual controllers of equity are properly recognised.
In a separate statement, the regulator said that the guidelines are aimed at “improving competitivness and risk management” at private banks and promoting “overall stability”.
China’s financial regulators have issued a slew of regulations and guidelines in recent weeks in an effort to bolster risk management and supervision at the country’s lenders, insurers and other financial institutions.
The CBRC issued licences to five private banks in 2014 and has since issued initial licences to a further 12 lenders. (Reporting by Matthew Miller and Beijing Monitoring Desk; Editing by Susan Thomas and David Goodman)