The China Banking and Insurance Regulatory Commission (CBIRC) has issued a guideline for the insurance and banking sectors for development over the next five years.
The regulator said that by 2025, Beijing expects the banking and insurance industries to improve their financial structure with multiple layers, broad coverage, and diversity, a report by Xinhua said.
Insurance institutions were directed to take a larger role in covering risks, improve connections with foreign banking and insurance institutions. Meanwhile, large and medium banks were instructed to optimise their operations, and smaller local banks should further enhance their financial service capabilities.
CBIRC said that both industries should create financial products that support the real economy and improve people’s lives, including those who work in strategic emerging industries, such as advanced manufacturing, technological innovation, and agricultural development. The firms should improve their corporate governance, as well as create a financial market that meets demand with diverse and customised products.
Companies must also work to avoid and eliminate risks in the banking and insurance industries, such as cooperating to prevent capital from illegally flowing into the property market, the regulator said.
