Corporate governance needs tougher regulation, says ex-official of central bank

China should tackle the rising risks from big financial holding companies and their risky practices such as excessive borrowing and high capital leverage, a former vice-governor of the Chinese central bank said on Thursday.

Hu Xiaolian, who is also the chairperson of the Export-Import Bank of China and a member of the 13th National Committee of the Chinese People's Political Consultative Conference, said regulators should strengthen measures on corporate governance of the financial institutions and should increase coordination to avoid regulatory void.

She was responding to a question at a news conference about the country's risk prevention policy following the government's takeover of Anbang Insurance Group, a private conglomerate accused of illegal business operation.

"We need to fill the regulatory void and eradicate the grey areas ... Various regulatory agencies need to have effective coordination ... and should have a unified regulatory standard," Hu said.