Mar 06, 2017 05:32 PM

Mr. Guo Speaks His Mind

Guo Shuqing, who has extensive experience as a banker, regulator and provincial official, has strong views on how to tackle the problems that beset China’s banking industry. He expressed some of those view at his first public appearance as CBRC chairman at a March 2 news conference in Beijing.

When asked about his role in the speculated overhaul of China’s financial regulatory system, Guo swiftly responded:

“I was still thinking about works in Shandong last week. … If you’d asked me about the ways to improve rural toilets, I would say I knew three ways, but you’ve asked me about my plans for banking regulation, and at present, I have none.”

However, he went on to describe some of the problems:

“Banks, trusts, fund management firms, brokerages and insurers all have asset management operations, but because they have different regulators and are subject to different rules, there’s been some squabbling.”

Later, he was quoted as saying:

“Different regulators, different laws, different rules have caused some chaos. … The current supervision on asset management products is like caging a cat with a cattle fence.”

At the news conference, he established his goals:

“We’ll go through regulations on various types of banking business, and promptly update those that lag behind the latest developments in the banking business and risks, and abolish outdated rules.”

“We will put priority on financial risk control to make sure there won’t be any systemic financial risks.”

“Having more private capital entering into the financial market is a very good thing. But we must prevent turning a bank into the family silver for a few influential stakeholders and a platform for connected party transactions.”

“I haven’t tried internet finance, but my family is very familiar with it, such as online shopping and QR-code payments. It is helpful to the real economy, but attention should be paid to risks.”

You've accessed an article available only to subscribers
Share this article
Open WeChat and scan the QR code