China Banking Regulatory Commission chief Guo Shuqing. Photo: Reuters/Bobby Yip

China has merged its long-existing regulatory commissions of banking and insurance into a new administration called the China Banking and Insurance Regulatory Commission, has reported.

Previously, the China Banking Regulatory Commission, the China Insurance Regulatory Commission, together with China Securities Regulatory Commission and the People’s Bank of China, formed a team of top regulators — “one bank and three commissions” — which were at the helm of the country’s financial stability.

Zhu Junsheng, deputy director of the Insurance Research Office at the Development Research Center of the State Council, said the current supervision of sub-industry cannot fully adapt to the emerging reality of the financial sector’s integrated operations, while merger supervision will help to adapt to the trend of comprehensive operations.

Zeng Gang, deputy director of the National Institution for Finance & Development, thinks it is unrealistic to merge the four administrations at one time. Zeng says the construction of a framework for the merger supervision of bank and insurance is much more practical.

Guo Shuqing, the director of CBRC, will serve as the chairman of the new commission.