Financial institutional reform to further strengthen supervision, increase efficiency, protect consumers’ rights: PBC governor
Published: Mar 09, 2023 10:23 PM
Yi Gang File photo: IC

Yi Gang File photo: IC

Following the recent release of an institutional reform plan that includes the establishment of a national financial regulatory administration, multiple deputies and members at the ongoing two sessions including Yi Gang, governor of the People's Bank of China (PBC), China's central bank, noted that the reform will further strengthen China's financial supervision. 

The establishment of the financial regulatory administration along with the local financial regulatory mechanism reform is conducive to strengthen supervision, improve efficiency and protect consumers' interests and rights, Yi, also a member of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC), said on Wednesday, the Securities Times reported on Thursday.  

Yi noted that the essential characteristic of the socialist market economy is to adhere to the leadership of the Communist Party of China, which will provide a strong guarantee for the resolution of risks.

Yi stressed the importance of prudently improving the financial capital management system and the financial infrastructure managed by relevant departments, while enhancing the unified and standardized management for financial institution staff. 

Multiple CPPCC members agreed with Yi's remarks, expecting more unified and centralized financial supervision that will fill in management gaps while ensuring the sustainable development of the sector. 

The institutional reform in the financial sector fills a gap in market regulation, Zhu Shumin, former vice chairman of the China Banking and Insurance Regulatory Commission (CBIRC) and a member of the 14th National Committee of the CPPCC, said on Wednesday.  

Huo Yingli, Party Secretary of the China Foreign Exchange Trade System, also a member of the 14th National Committee of the CPPCC, stressed that financial supervision is the major focus for reform, which is beneficial to coordinate regulatory initiatives, and incorporate all financial activities under supervision, while establishing institutional guarantees to prevent financial risks. 

Wei Gejun, a senior official from the PBC's Xi'an branch and a member of the 14th National Committee of the CPPCC, said that the reform will further centralize, simplify and standardize financial supervision.

The proposed national financial regulatory administration will be in charge of regulating the financial industry except for the securities sector, the Xinhua News Agency reported. 

The administration will be established on the basis of the CBIRC, which will not be retained, per the Xinhua report, with certain functions of the PBC and the China Securities Regulatory Commission to be transferred to the new administration.

The reform will build a more complete financial regulatory system for the nation, and the division of tasks will become more professional and clear, Dong Dengxin, director of the Finance and Securities Institute of the Wuhan University of Science and Technology, told the Global Times on Thursday.

Dong added that the system will further enhance protection for investors and consumers, while increasing supervision, especially targeting preventing financial risks. 

Moving forward with the future implementation and progress, Zhu said that the major focus could be placed on incorporating regulatory efficiency with technological progress and productivity development.

Dong added that the capital market will be more integrated with the innovative development of domestic enterprises, especially after the nation implemented the registration-based IPO system, aiming to better serve the real economy.