The new head of the China Banking Regulatory Commission, Liu Mingkang, says the commission will probably operate only as a regulator of banks and not as the manager of banking assets, as has been suggested in the industry.
Mr Liu's comments are the most definitive yet on the future regulation of financial assets, including banks and insurers, which were not part of the large-scale transfer of state-owned assets announced last week.
They also quell speculation that state-owned banks and insurance companies might be transferred to their industry regulators as part of the drastic government restructuring plan.
Bankers have raised concerns about the potential conflict of interest if the commission was both a shareholder representing government investments in state firms and the industry regulator.
Speaking after an NPC session yesterday, Mr Liu said: 'Based on what I have seen in the proposal announced, banking assets do not come under the control of commission's regulators.
'I don't think the commission should have the [asset] manager's role.'