Tianjin gets tougher on management of financial institutions

Source:Global Times Published: 2019/5/23 22:18:40

A government official in North China's Tianjin Municipality has held a talk with representatives from eight local financial institutions, urging them to learn from bad examples in the city's financial system. One expert said that this marks the beginning of broader financial management as the government tries to nip risks in the bud. 

Some people in charge of certain financial institutions in Tianjin "lack the Party spirit", "ignore the laws and disciplines" and "lose morals and credit," government officials pointed out during the aforementioned talk. 

The talk was held by Li Hongzhong, secretary of the Communist Party of China (CPC) Tianjin Municipal Committee, with representatives from Tianjin-based financial institutions including the Bank of Tianjin, the China Bohai Bank and the Northern International Trust Co, according to an article published on the official website of the CPC Central Commission for Discipline Inspection on Wednesday. 

According to the article, which contained a briefing on the meeting's content, Tianjin is at a "critical moment" for preventing and resolving financial risks, and the municipal government will use all its resources to resolve debt risks and avoid systemic financial risks. 

In recent years, violations were frequently exposed in Tianjin's financial sector. For example, the Tianjin branch of the China Banking and Insurance Regulatory Commission imposed a 6.6 million yuan ($950,000 million) fine on the Bank of Tianjin for violating regulations in areas including wealth management and inter-bank business. 

Xi Junyang, a professor at the Shanghai University of Finance and Economics, said that China's financial industry still harbors a lot of problems, such as malicious transfer of banking capital, or investing in projects with minimal investment value. 

"There will be a large-scale financial management follow-up. Finance is a systemic industry, so when local institutions have problems, they must be rectified in a timely fashion so that those problems won't spread to a larger extent and pose risks to the country," he told the Global Times on Thursday. 

According to Xi, the government's clearing up of the financial sector has made some achievements in recent years, including the implementation of "penetrating management," a term that refers to a comprehensive management pattern involving both the central bank and the financial regulators and the use of big data in such management.

"As management toughens, countermeasures by those who are managed will also be updated. So financial management will be a long-term process," he said. 



Posted in: ECONOMY

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