China's new Banking and Insurance regulator prioritize to improve risk management

CBIRC will guide banks and insurers to return to their core businesses and support the real economy.

The first task of China's newly formed banking and insurance regulator is to improve corporate governance at the institutions while boosting their risk management and internal controls, a top regulatory official said on Saturday.

The China Banking and Insurance Regulatory Commission (CBIRC) will guide banks and insurers to return to their core businesses and support the real economy, CBIRC Vice Chairman Wang Zhaoxing said at the China Development Forum in Beijing.

The regulator - formed after the recent merger of China's banking and insurance watchdogs - will also tell them to reduce unnecessary off-balance sheet business, Wang said.

Guo Shuqing had been the head of the China Banking Regulatory Commission, which was merged with the China Insurance Regulatory Commission as part of a broader government reshuffle approved by parliament last week.

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The merger of the China Insurance Regulatory Commission (CBRC) and China Insurance Regulatory Commission (CIRC) is aimed at resolving existing problems such as unclear responsibilities and cross-regulation, according to a document released during China's annual parliament meeting, which ended on Tuesday.