Authored by Ren Gulong (rengulong@anjielaw.com) at AnJie Law Firm
In January, 2018, China Banking Regulatory Commission (CBRC) released the Interim Measures for the Administration of Equity in Commercial Banks (“the Measures”) to prevent and punish illegal acts of shareholders that harm the interests of banks and to ensure the sound operation and healthy development of commercial banks.
Private capital has been enthusiastic in setting up or acquiring banking institutions in the past several years. In the meantime, a series of problems arose, acquisitions of bank shares with non-proprietary funds or using entrustment structure, the illegal transfer of interests between a bank and its shareholder.
In January, 2018, China Banking Regulatory Commission (CBRC) released the Interim Measures for the Administration of Equity in Commercial Banks (“the Measures”) to prevent and punish illegal acts of shareholders that harm the interests of banks and to ensure the sound operation and healthy development of commercial banks. The Measures regulates major shareholders of commercial banks, strengthens the examination of shareholders’ qualifications and intensify the investigation and punishment of illegal acts.