银监法修订草案新增“整顿组”

Core Viewpoint - The revised draft of the Banking Supervision Law, which has been open for public consultation since December 27, 2025, aims to enhance risk management and shareholder supervision in the banking sector, while maintaining the overall direction established in the previous draft from three years ago [1][2]. Group 1: Risk Management Enhancements - The revised draft introduces a "restructuring group" as an intermediary layer between early intervention and takeover, creating a comprehensive risk management framework that includes restructuring, rectification, takeover, and revocation [1][2]. - Article 55 of the revised draft allows the banking regulatory authority to deploy a restructuring group to monitor the operations of financial institutions facing significant risks, with a six-month timeline to restore normal operations before considering further actions such as restructuring or bankruptcy [2][3]. Group 2: Regulatory Context and Historical Background - The current Banking Supervision Law has been in effect since 2004, a period during which regulatory experience in managing risks, particularly in small and medium-sized financial institutions, has been limited [3]. - The revision aligns with the "14th Five-Year Plan" which emphasizes strengthening financial regulation and diversifying risk management tools [3]. Group 3: Market-Based Solutions and Institutional Reforms - There has been a noticeable acceleration in the reform and risk management of small and medium-sized financial institutions, with significant reductions in the number of high-risk banks reported by the People's Bank of China [3]. - State-owned banks have increasingly participated in the reform of small banks, including acquiring village banks and converting them into branches, which helps mitigate risks without necessitating takeovers [4]. Group 4: Specific Provisions for Takeover Procedures - The revised draft provides more flexibility for market-based acquisitions during the takeover process, allowing the takeover group to implement measures such as entrusting other banks to manage the operations of the seized institution [5]. - It also introduces specific tools for managing takeovers, including debt-to-equity swaps and facilitating third-party institutions to assume assets and liabilities of the seized banks [5]. Group 5: Future Legislative Considerations - Future revisions of the Banking Supervision Law should ensure alignment with the upcoming Financial Stability Law and Financial Law to create a cohesive regulatory framework [6].