(Yicai Global) Aug. 5 -- A slew of senior financial regulatory officials have left their positions for the finance sector as well-funded Internet finance companies, private and state-owned banks as well as reputable peer-to-peer lenders poach talent.
As part of a broader anti-graft campaign launched by the Chinese government in 2012, the state has imposed limits on executive salaries. An officer leaving the central bank for a financial institution told Yicai Global jokingly that the reason was very simply, "To support my family."
Central bank officials generally leave to take up positions with international organizations such as the International Monetary Fund and the World Bank, to transfer internally within the state regulatory system or to join financial institutions such as banks, securities companies and the Internet finance industry.
"As private banks become more common, they need more executives. Flows of regulatory officials or other bank executives will become even more frequent in the future," the person said.
However, although regulatory officials may enjoy higher remuneration and more room at businesses than at regulatory agencies, they may have trouble acclimatizing to their new roles during to 'cultural differences' between the two sectors, an insider from a leading bank told Yicai Global.
Recently, Mr. Yao Yudong resigned as director of the People's Bank of China's Research Institute of Finance to become chief economist at Dacheng Fund Management Co., Mr. Zhou Mubing, vice chairman of the China Banking Regulatory Commission, left to become chairman of the Agricultural Bank of China and former director of the China Securities Regulatory Commission's International Department, Mr. Qi Bin, has been appointed deputy general manager of sovereign wealth fund China Investment Corp.