The bank shares the insurance must set up the firewall

Business News (reporter Triping Chi Qibin) in the future, the deep cooperation between commercial banks and insurance companies will be rule-based.　　Yesterday, the CBRC issued the "Commercial Bank investment insurance companies in the pilot Management measures" (hereinafter referred to as the "method"), "measures" for commercial banks to invest in the insurance companies specific details to be stipulated, while the banks to prevent the risk of banking and insurance transfer set up the necessary "firewall." In fact, prior to the introduction of the scheme, the cooperation between banks and insurance companies has begun.　　As early as January 2008, the CBRC and the CIRC have signed a "Memorandum of understanding" on the deep cooperation between banks and insurance companies, allowing them to carry out mutual investment experiments in accordance with the principles of marketization and equality and mutual benefit, subject to the relevant state regulations and effective segregation of risks. After the signing of the memorandum of understanding, 4 commercial banks, including the Bank of China and Beijing, submitted their applications for the investment in insurance companies. In early September this year, the bank's bid to acquire China Life's 51% stake in the Sino-Baokang joint venture has been formally approved by the CIRC, which may take the lead in starting the equity investment, 2.5 months ahead of the introduction of the scheme.　　Analysts say the lag in the approach suggests a cautious approach by regulators.　　CBRC related officials said that the introduction of the "method" will change the silver insurance between the only stay in the product distribution of the shallow cooperation situation, effectively promote the bank shares in insurance companies, but also conducive to the promotion of banking and insurance resources sharing, complement each other, to better meet the growing demand for diversified financial services consumers. However, commercial banks also face greater risks in investing in insurance companies.　　Among them, the related transactions between banks and insurance companies tend to bring about risk concentration and risk spillover, because bank and insurance cooperation may cause banks ' credit risk spillovers, management risks caused by the unprofessional or inexperienced board of directors of the banks and insurers, and the duplication of capital calculation, which may result from the imperfect management of the bank.　　After the bank was allowed to invest in the insurance company for two months, in order to prevent the risk of bank-guaranteed equity cooperation, the CBRC specifically requested the investment bank to set up a "firewall".　　The measures stipulates that in corporate governance, the ultimate responsibility of the Board of Directors of commercial banks must be emphasized, and the board of Directors should be responsible for establishing and perfecting the "firewall" system to ensure the effective isolation of banks and insurance companies in the areas of business, decision-making, personnel, finance and information systems.　　At the same time, in connection with the management of transactions, the provision of commercial banks to their shares of the insurance companies and their affiliated enterprises, as well as their guaranteed customers are not allowed to provide any form of external credit, the insurance company shall not directly or indirectly purchase the bank shareholders issued subordinated bonds, the purchase of other securities should not　　In addition, in the table management, commercial banks are required to manage the insurance companies, and in the calculation of capital adequacy ratio, the investment insurance company's capital investment from the bank capital of the full deduction. Specifically in terms of business cooperation, the CBRC requires commercial banks and their shares of insurance companies to carry out business cooperation, should follow the cityFair Trading principle, there must be no unfair competition behavior, insurance company sales personnel shall not be in the business area of their parent bank marketing, commercial banks of the insurance companies to be printed in the policy card and promotional materials shall not use the name of its shareholder bank and various types of identification.