CBIRC issues rules to improve the quality of directors and supervisors at banks and insurance companies

The state takeover and restructuring of Anbang Insurance Group Co. Ltd. in 2018 and Baoshang Bank Co. Ltd. in 2019 exposed serious shortcomings in corporate governance at China’s financial institutions that had the potential to destabilize the domestic financial system. Although regulators have known for years that weak corporate governance has been a major contributor to the string of scandals and fraud committed by both publicly listed, state-owned and private companies and financial institutions, these two high-profile rescues were a watershed moment…