The four departments jointly released the "Implementation Opinions on Improving the Governance of Financial Institutions," clarifying that a governance mechanism with clear responsibilities and efficient governance is expected to be basically formed by 2029.

Recently, the Financial Regulation Administration, the People's Bank of China, the China Securities Regulatory Commission, and the Ministry of Finance jointly issued the "Implementation Opinions on Improving the Governance of Financial Institutions" (hereinafter referred to as the "Implementation Opinions"). The document proposes 22 measures in 9 parts, focusing on enhancing the leadership of the Party, improving shareholder governance, increasing the operational effectiveness of governing bodies, strengthening internal governance, enhancing and improving regulation, and building a favorable financial ecosystem. The "Implementation Opinions" clearly state that by 2029, a governance mechanism for financial institutions will be essentially formed that features clear boundaries of responsibilities, compatible incentives and constraints, strict risk management, and standardized, efficient operations. The intrinsic stability and risk resistance of the financial system will be significantly enhanced, and the quality and effectiveness of financial services will be markedly improved to support high-quality development. The "Implementation Opinions" emphasize the need to strengthen the centralized and unified leadership of the Party Central Committee over financial work, deepen the organic integration of Party leadership and corporate governance, and strictly implement requirements such as embedding "Party-building in the Articles" and "dual entry, cross positions" within state-owned financial institutions, along with prior research and discussion by the Party Committee (Party Group) on major operational and management matters, while also supporting non-public financial institutions in expanding Party organization and work coverage. The "Implementation Opinions" propose to improve the governance mechanisms to prevent major shareholders from illegally interfering and controlling insiders, strengthen the thorough supervision of equity and related transactions, optimize the structure of boards of directors, reinforce the responsibilities of "key minorities" such as directors and senior executives, improve incentive and constraint mechanisms, and enhance the internal control and compliance system. The "Implementation Opinions" require the strengthening and improvement of financial regulation, implementing differentiated regulation in a tiered manner, severely punishing illegal and regulatory violations, increasing the costs of such violations, perfecting the risk monitoring and early warning mechanisms, and enhancing the precision, effectiveness, and foresight of regulation. It also calls for improving the rule of law in finance, strengthening coordination between central and local authorities, cultivating and promoting the financial culture with Chinese characteristics, and building a favorable financial ecosystem. In the next steps, the Financial Regulation Administration, the People's Bank of China, the China Securities Regulatory Commission, and the Ministry of Finance will solidly implement the "Implementation Opinions" to effectively enhance the governance effectiveness of financial institutions, thereby promoting high-quality economic and social development through industry growth. This article is adapted from the official website of the "Financial Regulation Administration," edited by GMTEight: Chen Siyu.