A new organization to be formed in China to deal with regulation of banking and insurance

Beijing. March 15. Silkroadnews - China will merge the Banking Regulatory Commission and the Insurance Regulatory Commission to form a new organization to more efficiently manage these two sectors in accordance with the draft state institutional reform plan, China Daily reports.
The new commission is designed to ensure the stable development of the two sectors, contributing to prevent risks for the whole financial system. This body, as expected, will also better protect the rights of financial consumers.
Functions and responsibilities, including the preparation of guidelines and supervision of the basic financial system, will belong to the People’s Bank of China.
Having merged the two commissions will strengthen the integrated functions of financial supervision, as well as improve the quality and efficiency of regulation.
The banking regulatory commission, established in 2003 and currently headed by Guo Shuqing, oversees more than 4,000 banks with assets of about $40 trillion.
The insurance commission was established in 1998. Its top position remains vacant after last year’s investigation into the former chairman Xiang Junbo, suspected of taking bribes.