China Tightens Scrutiny On Commercial Lender Shareholders

www.oann.com | 5/31/2017 | Staff
urbanagirl3 (Posted by) Level 3
BEIJING (Reuters) – China’s banking regulator has published interim measures to increase scrutiny over shareholdings of commercial lenders, while restricting the number of significant investments any shareholder can make in a domestic bank.

The China Banking Regulatory Commission (CBRC), which published the new regulations on its website late on Friday, said they were aimed at addressing “disorder” in the banking sector, including the abuse of rights by major shareholders and the prevalence of “invisible shareholders”.

Investor - Percent - Shareholding - Banks - Stake

A single investor can hold 5 percent or more, considered a major shareholding, of no more than two commercial banks, or a controlling stake of no more than one lender, the rules state.

Any stake purchase of more than 5 percent must be approved by the CBRC and major shareholders of commercial lenders cannot hold interests in the same institution via financial products.

Measures - Draft - Regulations - November - Shareholders

The measures, which follow draft regulations released in November, also require major shareholders to disclose their...
(Excerpt) Read more at: www.oann.com
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