CBIRC Tightened Regulation on Banks and Insurers Rated D or Below in Corporate Governance Evaluation

On November 30, 2022, the China Banking and Insurance Regulatory Commission (“CBIRC”) released the Measures for the Evaluation of Corporate Governance of Banking and Insurance Institutions (“Measures”), with effect on November 28, 2022.

The Measures has 33 articles in five chapters, which includes general provisions, contents and methods of evaluation, evaluation procedures and work division, evaluation results and the application, as well as the supplementary provisions. It improves the provisions on the scope of banks and insurers subject to the evaluation, the evaluation mechanism, the evaluation indictors, and application of the evaluation results, expanding the coverage of banks and insurers subject to the evaluation to include financial asset management companies, financial leasing companies, enterprise group financial companies, and auto financial companies. It also enhances the application of the evaluation results, calling for regulators to place banks and insurers rated as D or below in the corporate governance evaluation under tightened regulation.