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China Vows Stricter Checks on Smaller Banks After Losses, Abuses

  • CBIRC pledge comes after local officials altered health codes
  • Regulator working with local government on helping investors
The China Banking and Insurance Regulatory Commission building in Beijing, China.

The China Banking and Insurance Regulatory Commission building in Beijing, China.

Photographer: Yan Cong/Bloomberg
Bloomberg News
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China vowed to step up supervision of the nation’s smaller banks and crack down on illegal activities after investors potentially lost billions of dollars in a suspected financial scam in Henan province.

The China Banking and Insurance Regulatory Commission will strengthen its oversight of shareholders at small- and medium-sized banks and restrain the behavior of major owners, Xiao Yuanqi, a vice chairman at the regulator, said at a briefing in Beijing on Thursday. The move is part of measures to beef up corporate governance at the lenders, he said.