Industry News | Access Department of the State Administration of Financial Regulation: Study raising the entry threshold for banking and insurance institutions

Access Department of the State Administration for Financial Regulation

Deeply implement the spirit of the Central Financial Work Conference

Strive to create a new situation for the admission of financial institutions

The Central Financial Work Conference pointed out the need to accelerate the construction of a strong financial country and comprehensively strengthen financial supervision. This is a major strategic deployment made by the Party Central Committee to firmly grasp the phased characteristics of China's development in the new era.      

1、 Deeply understanding the importance of high-quality access work in promoting high-quality financial development

（1） High quality access is an important foundation for achieving high-quality financial development

The Central Financial Working Conference pointed out that we should promote the high-quality development of China's finance and provide strong support for comprehensively promoting the construction of a powerful country and the great cause of national rejuvenation with Chinese path to modernization. The admission of financial institutions is an important component of a comprehensive and effective modern financial regulatory system. It is not only the builder of a sound financial system, but also the promoter of optimizing financial services and the guardian of preventing financial risks. The admission work must deeply grasp the political nature of financial regulation, keep in mind the importance of the country, and continuously guide banking and insurance institutions to return to their business origins, adhere to their functional positioning, strictly adhere to their business areas, and act or not according to their own characteristics and abilities, doing what is necessary and what can be done well; We should actively support banking and insurance institutions to focus on five major areas: technology finance, green finance, inclusive finance, pension finance, and digital finance, further enhancing their financial support for the development of the real economy, and providing high-quality financial services to support high-quality development.

（2） High quality access is an inevitable requirement for promoting financial supply side structural reform

Deepening the structural reform of the financial supply side is a major measure and necessary path for the construction of a strong financial country. Access work must deeply grasp the people-oriented nature of financial regulation, keep in mind the fundamental purpose of serving the people, and strengthen research and coordination on the structure of the financial system, the layout of financial institutions, and the structure of financial services. To continuously guide financial institutions to optimize and improve their industry, function, and regional layout, and promote the effective supply of financial resources; To continuously guide financial institutions to focus on key areas, weak links, and market demand for rational allocation, and enhance the compatibility between financial supply and high-quality economic development in China; We must continue to guide financial institutions to provide high-quality financial services for economic and social development and people's well-being, and continuously meet the growing financial needs of the people.

（3） High quality access is an important lever for preventing and controlling financial risks

The Central Financial Work Conference pointed out that we must firmly guard the bottom line of preventing systemic financial risks; We need to comprehensively strengthen financial supervision and effectively prevent and resolve financial risks. The admission work must deeply grasp the prudence of financial supervision, and guard the first gateway to prevent financial risks and strengthen financial supervision. On the one hand, it is necessary to firmly grasp substantive risks in the admission review process, while improving work efficiency, moving forward the risk supervision threshold and raising the financial market threshold. On the other hand, we should actively support the disposal of high-risk financial institutions, timely eliminate systemic financial risks and hidden dangers, and ensure the stability and long-term development of the construction of a financial powerhouse.

（4） High quality access is an important measure to improve the level of financial openness to the outside world

The Central Financial Work Conference pointed out that efforts should be made to promote high-level financial openness and ensure national financial and economic security. The admission work should follow the overall deployment of the Party Central Committee and the State Council on financial opening up to the outside world, adhere to the equal emphasis on "bringing in" and "going out", and steadily expand institutional opening up in the financial field, including regulations, rules, and standards. We need to continuously improve the management model of pre admission national treatment plus negative list, optimize the business environment in the financial sector, and attract more foreign financial institutions and long-term capital to invest and develop in China; To support Chinese financial institutions with conditions to establish overseas institutions and conduct overseas business, enrich cross-border financial products and services, and provide escort for Chinese enterprises going global; We must adhere to the balance between financial openness and security, and work together to build a strong firewall for cross-border transmission of external risks.

2、 Firmly grasp the essential requirements of high-quality admission work

The new era, new journey, new institutions, and new trees have been established. The State Administration of Financial Supervision actively explores the laws of financial supervision in the new era, continuously deepens its understanding of the essence of socialist finance with Chinese characteristics, and promotes the reconstruction of the internal access process of the State Administration in accordance with the requirements of strict and strong supervision.  

（1） Based on the comprehensive strengthening of the Party's leadership. Strengthening the centralized and unified leadership of the Party Central Committee over financial work is the fundamental guarantee for doing a good job in financial work.  Continuously enhance the political and people-oriented nature of admission work.

（2） Starting from strict admission standards. Strictly enforce the admission standards and requirements for financial institutions, research and improve the admission threshold for banking and insurance institutions, and continuously strengthen the foundation of prudent supervision of financial institutions. We must adhere to the principles of financial franchising and licensed operations, promote the legal inclusion of all financial activities in regulation, and eliminate unlicensed driving in the financial sector. We need to implement comprehensive supervision of financial activities from the entry checkpoint, ensuring consistent admission standards for similar and homogeneous financial institutions and financial businesses, and preventing regulatory arbitrage.

（3） Supported by strict administration in accordance with the law. We must adhere to the law and enforce it strictly, and effectively safeguard the authority and dignity of national laws and regulations. Adhere to the principles of "openness, fairness, and impartiality", strictly carry out admission work in accordance with the statutory authority, scope, conditions, and procedures, standardize the handling procedures, classify and unify standards, and prevent favoritism and fraud. Adhere to a strict tone in carrying out admission work, dare to say no to matters that do not meet admission standards and illegal and irregular behaviors, dare to shine a sword, and help build a solid foundation for the security and stability of the financial system.

（4） Focusing on optimizing admission services. As a newly established department for institutional reform, the Access Department will solidly promote the construction of the "Four New" projects, while balancing prudence, standardization, and timeliness on the basis of compliance with the law. It will continue to optimize the approval process, improve approval efficiency, and provide convenient, efficient, and standardized administrative services for administrative license applicants. This will make the access work both powerful and warm, and there will be no "difficult to enter, ugly face, or unpleasant words" phenomenon. At the same time, we will improve the access system for financial institutions and provide policy interpretation and guidance to enhance policy transparency and execution.

3、 Solidly carry out various high-quality admission tasks

The Access Department will base itself on new institutions, new responsibilities, and new missions, actively put the access work into the overall construction of a modern financial system with Chinese characteristics, and put it into the great process of building a strong financial country. We will adhere to the guidance of strong supervision and strict supervision, strengthen the "long teeth and thorns" of access work, and promote the continuous improvement of quality and efficiency in the access work of the General Administration.

（1） Strictly enforce admission standards and improve the quality of admission work

Explore the classification and grading management of financial business licenses based on the governance level, management ability, risk status, etc. of financial institutions, to ensure that the business scope of the institutions matches their own ability level. Strengthen the qualification access management for directors, supervisors, and senior management personnel, strengthen the access control for "key personnel", and prevent "sick mobility". Strengthen the thorough review of shareholder qualifications, sources of investment funds, innovative businesses, and external investments, and strengthen the main responsibilities of financial institutions, shareholders, and intermediary institutions. For those who conceal real information and important information, provide false certificates and reports, engage in financial fraud, and cover up risk issues in admission applications, they will not be allowed or revoked, and the problem clues will be transferred to inspection and punishment departments.

（2） Consolidate the foundation of job performance and improve the efficiency of admission work

Accelerate the filling of institutional shortcomings, promote the reform, abolishment, and release of important laws and regulations for the admission of financial institutions, continue to do a good job in regulatory clearance, and improve the systematic, scientific, and normative nature of rules and regulations. Provide guidance and post evaluation for the admission work of dispatched agencies, unify administrative licensing discretion standards, and promote the standardization of admission work throughout the system. Accelerate the informatization construction of admission work, fully utilize big data and informatization methods, and provide strong support for daily admission work.

（3） Strengthen collaborative linkage and effectively form a work synergy

Strengthen the coordination and coordination between admission work and various regulatory work, work together in the same direction, form a joint force, and effectively improve the foresight, accuracy, effectiveness, and synergy of regulation. On the basis of unified principles, unified standards, hierarchical classification, and standardized procedures, combined with the comprehensive situation of corporate governance, business management, risk control, and other aspects of financial institutions mastered in daily supervision, strengthen the review and control of specific admission matters. Strengthen the coordination and connection between pre admission and continuous supervision during and after the event, continuously strengthen the post evaluation of institutional establishment and business qualification admission, as well as the supervision of shareholder behavior and executive performance. Promptly transfer and handle potential business management issues identified during admission review, and take timely regulatory measures for problems and risk signs identified during continuous supervision.

（4） Strengthening team building and forging an iron army for financial access work

Adhere to the standards of political excellence, ability, and work style, and focus on forging a high-quality professional financial cadre talent team that is loyal, clean, and responsible. Give full play to the role of party members and cadres as a fortress of battle, drive a professional and responsible regulatory team with a pure and excellent party member team, and effectively fulfill their duties and responsibilities. Grasp the construction of clean governance, always put rules and discipline at the forefront, strictly implement the requirements of clean governance and the central eight point regulations, and consciously accept internal and external supervision. Strengthen checks and balances supervision and constraints, improve internal access workflow and division of responsibilities, standardize review, approval, and consultation procedures, strengthen checks and balances on power operation, and solidify internal institutional frameworks. Regularly carry out anti-corruption warning education, requiring all cadres to establish a correct view of power and political achievements, and firmly adhere to the red line of resisting corruption and preventing change.

  Assist in accelerating the construction of a modern financial system with Chinese characteristics.