It is illegal to use the word “bank” indiscriminately! This is the latest risk warning made by the CBRC.
On January 27, the CBRC publicized a risk warning on the non-standard use of the word “bank” on its official website, such as naming relevant ecological resources operation and development platforms under the names of “Liangshan bank” and “grain bank”, or suspected of violating relevant laws and regulations.
After consulting the Chinese reporters of securities companies, they found that at present, many platforms use the word “bank” in violation of regulations, such as “Liangshan Bank of Liuba county”, “Liangshan Bank of Chibi City”, “Xihu grain bank” and “Zhongyuan grain bank”.
Relevant researchers told Chinese reporters of securities companies that the unauthorized use of the word “bank” by non-financial institutions and enterprises may indeed be illegal, which needs to be investigated and dealt with in time to prevent these names from misleading users. The unified names of relevant industries should also adapt to Chinese laws.
CBRC: rectify the non-standard use of the word “bank”
On January 27, the China Banking and Insurance Regulatory Commission (CIRC) issued the risk warning on the non-standard use of the word “bank”, which made requirements for relevant non-standard behaviors.
The CBRC said that through daily monitoring, it was found that there were many cases of non-standard use of the word “bank” in some places without the approval of the CBRC and its dispatched offices. Some places use the word “bank” to name some public projects, and do not use the word “bank” in the publicly issued work plan and other documents, including naming the relevant ecological resources operation and development platform with the names of “Liangshan bank” and “grain bank”, and using the word “bank” in the prominent position of the business place.
The CBRC said in the above risk warning that the use of the word “bank” without approval, It is suspected of violating the legal provisions of Article 11 of the commercial bank law of the people’s Republic of China that “without the approval of the banking regulatory authority under the State Council, no unit or individual shall engage in commercial banking business such as absorbing public deposits, and no unit shall use the word” bank “in its name”. At the same time, it is easy to mislead the public and disrupt the order of the financial market by naming relevant ecological resources operation and development platforms as “banks”.
Finally, the bancassurance said that all localities should rectify and correct the non-standard use of the word “bank” in time. Regulatory authorities at all levels should do a good job in the publicity of law interpretation, combine supervision and law enforcement, and coordinate and promote the clean-up of standardizing the use of the word “bank” according to law.
After consulting, the Chinese reporter of securities companies found that many information on the network appeared the behavior of relevant non-financial institutions using the word “bank”, such as Liangshan bank, a relevant platform for management integration, transformation and upgrading, market-oriented trading and sustainable operation around natural resources; And a public welfare platform – “grain bank”, which avoids grain waste, collects surplus grain and accurately meets the needs of the masses.
“The unauthorized use of the word ‘bank’ by non-financial institutions and enterprises may indeed be illegal. It needs to be investigated and dealt with in time to prevent these names from misleading users and prevent criminals from using the word ‘bank’ to commit illegal acts. We should take precautions and understand that a name, even if the enterprise has no malicious intention, may also be maliciously used by subordinate employees.” Pan Helin, member of the information and communication economy expert committee of the Ministry of industry and information technology and executive director of the Digital Economy Research Institute of Central South University of economics and law, told Chinese reporters of securities companies.
Pan Helin believes that if only the “bank” is marked instead of financial business, such as the food bank of some NGOs, it can be ordered to modify the name within a time limit. We can also consider using a unified name for the whole industry, such as food bank, which is used in many countries, so it is an imported special vocabulary. If it is suitable for Chinese law, it can be standardized by a unified new name.
rectify the abuse of the name of “University”, and the “enterprise university” of many financial institutions has been renamed
It is worth noting that in addition to the illegal use of the names of proprietary institutions with financial attributes such as “banks”, many financial institutions and private enterprises have illegally used the names of “universities” and “colleges”.
On May 18 last year, eight departments including the Ministry of education and the China Banking and Insurance Regulatory Commission issued the opinions on regulating the registration and use of the names of “universities” and “colleges”, pointing out that universities and colleges are legal persons with specific functions and functions, and should be established in accordance with laws and regulations and the standards and procedures stipulated by the state, and their names can be used only after approval. Internal training institutions established by enterprises without approval and registration shall not use the names and abbreviations of “University” and “College” to carry out any form of publicity and other activities. If the sponsoring institution is a state-owned enterprise, the institution performing the duties of the investor shall be responsible for regulating it; If the sponsoring institution is a bank insurance institution, the bank insurance supervision department shall be responsible for regulating it.
According to the requirements of the above documents, all relevant departments shall organize to clean up and rectify within 6 months. If the words “University” and “College” are still used in violation of the time limit, the education and other departments shall order them to make corrections or investigate and deal with them according to law.
Previously, financial institutions that have always attached importance to talent training have set up their own enterprise universities. Among the five major banks, Bank Of China Limited(601988) , Agricultural Bank Of China Limited(601288) , Industrial And Commercial Bank Of China Limited(601398) , China Construction Bank Corporation(601939) , Bank Of Communications Co.Ltd(601328) enterprise universities were previously named after “Bank of China University”, “Agricultural Bank of China University”, “ICBC University”, “CCB University” and “School of finance of Bank of Communications”.
China’s securities reporters found that with the end of the 6 month rectification period, many financial institutions’ enterprises have been gradually reformed. The WeChat official account of the University of ICBC has been renamed the “Bank of ICBC research center” in December 15th last year. The official account of “CCB” and “BOC University” showed that the names of the institutions concerned were renamed “CCB research center” and “BOC research center” in November. Enterprise Universities under insurance institutions are no exception. The “Taikang Business School” under Taikang group, which once had a certain popularity in the industry, has been renamed “Taikang Research Institute”, and the “sunshine University” under sunshine insurance has also been renamed “sunshine University”.
Analysts believe that the norms of relevant state departments for relevant enterprises or institutions are mainly aimed at rectifying the deviation of some institutions in the name of “enterprise university” for knowledge payment business activities. The rectification of the non-standard use of the name of “University” by relevant departments can also urge enterprises to rethink and improve the training system and significance of relevant enterprises.
