Rating agency says merged regulator will streamline banking, insurance regulationChina | 13 Mar 2018 6:13 pm
Moody's Investors Service said today the consolidation of China's banking and insurance regulators would streamline and unify regulation, especially on shadow-banking activities, by reducing the room for regulatory arbitrage.
"For example, consolidation could help contain the use of pass-through channels involving the banking and insurance industries. We expect the merged regulator would adopt a more effective approach to regulating these activities,” Moody's noted.
The rating agency added that the transfer to the central bank of rule-making authority in the two industries would enhance coordination between monetary and regulatory policies in the interests of safeguarding financial stability.