China's financial regulatory bodies encouraged the country's commercial banks, securities firms and insurance companies to cooperate to make business renovations.
The People's Bank of China (PBOC), China Securities Regulatory Commission (CSRC) and China Insurance Regulatory Commission (CIRC) had reached common understanding that all businesses that were not forbidden by the financial regulatory rules could be handled by China's financial institutions, or be dealt with after reporting to the regulatory authority for record.
Pan Jianshuo, vice-director of PBOC's Research Bureau, said banks, securities and insurance companies could share the market net and customer resources, and develop in a cooperative way.
Insurance companies can use the customer resources and information library owned by the banks as banks can provide them finance consultation and fund trusteeship services. Meanwhile, insurance companies can provide insurance service to banking products such as consumption credit. As a kind of negotiable security, insurance policies can be used as effective mortgagors for bank loans. The two sides should accelerate the circulation of necessary funds, Pan indicated.
The CSRC and CIRC are applying for the permission that insurance capitals can directly enter the stock market to carry on investment activities, according to Jin Ying, deputy secretary-general of CSRC.
For new problems emerging during the cooperation, a PBOC official said that the government would improve the regulatory level and strengthen the coordination of CSRC, CIRC and the PBOC -- the central bank.