China's 'Supervisory Authority' Financial Regulatory Commission Imposes 1.5 Trillion Won Fine on Financial Firms

The National Financial Regulatory Administration (NFRA), which oversees China's financial industry, imposed fines totaling nearly 1.5 trillion KRW on local financial institutions last year.

According to Chinese economic media Caixin on the 29th, the NFRA announced that it imposed and confiscated a total of 7.838 billion yuan (approximately 1.4557 trillion KRW) in fines on 4,750 banks and insurance institutions last year. Caixin reported that this amount is 2.7 times the 2.899 billion yuan imposed in 2022.

[Image source=Reuters Yonhap News]

The number of officials punished during the management and supervision process also increased from 7,561 in 2022 to 8,552 last year. Illegal fundraising and issuance of false certificates were cited as reasons for the penalties.

Earlier on the 14th, the NFRA issued a statement urging stricter supervision and law enforcement on financial institutions, warning that "if effective supervision of illegal activities is lacking, risks may spread." In October last year, at the Central Financial Work Conference, it was emphasized that all financial activities must be supervised according to the law and that illegal activities must be strictly cracked down on.

The NFRA, the main body responsible for management and supervision, was newly established during the implementation of the State Council's institutional reform plan announced alongside the launch of Xi Jinping's third term as China's president. Officially launched in May last year, it oversees and supervises all financial institutions except securities firms, protects the rights and interests of financial consumers, and plays a role in strengthening risk management and preventive measures. Its functions are similar to those of Korea's Financial Supervisory Service.

Replacing the former China Banking and Insurance Regulatory Commission (CBIRC), the NFRA has taken over routine supervision and management responsibilities for financial groups such as financial holding companies under the People's Bank of China, the country's central bank, as well as financial consumer protection duties.

This content was produced with the assistance of AI translation services.