China Banking and Insurance Regulatory Commission： A Problem Shareholder of a Problem Institution in an Orderly Way.

　　CCTV News:On April 22nd, the State Council Press Office held a press conference on the operation and development of the banking and insurance industry in the first quarter.

　　At the press conference, Cao Yu, vice chairman of China Banking and Insurance Regulatory Commission, said that at present, the corporate governance of small and medium-sized banks has achieved initial results. First, the efforts to control the illegal and disorderly situation of shareholders’ equity have been intensified. Last year, China Banking and Insurance Regulatory Commission launched a special rectification campaign against shareholders’ equity and related party transactions, investigated and dealt with more than 3,000 violations, and cleared up more than 1,400 shareholders held by natural persons or legal persons. Since 2018, we have carried out special investigations on rural small and medium-sized institutions. At present, we have ordered illegal shareholders to transfer 3.34 billion shares and imposed a total penalty of 51.65 million yuan on 74 institutions. The second is to steadily clean up and rectify the illegal shareholders’ equity of high-risk institutions. In the process of risk disposal and resolution of institutions such as Baoshang Bank, China Banking and Insurance Regulatory Commission takes clearing the illegal shareholders’ equity and carrying out market-oriented mergers and acquisitions as an important starting point. At present, the risk disposal and reform and restructuring of institutions such as Baoshang Bank are progressing in an orderly manner. For other problem institutions concerned by the society, relevant equity restructuring plans have been introduced one after another, and the shareholders involved are also being retired in an orderly manner.