China’s super financial regulator to be headed by Vice Premier
November 14, 2017 Category China News Round-up, Weekly
China officially launched its new super financial regulator four months after President Xi Jinping ordered the creation of the agency to tackle financial risk. The Financial Stability and Development Committee already convened its first meeting and defined a wide range of functions, according to Xinhua news agency. The Committee is headed by Vice Premier Ma Kai, which means it will have a higher political ranking than the various government ministries already involved in financial oversight.
The agency would supervise China’s monetary policy and financial regulation. It will also formulate policies on systemic financial risk management, maintain China’s financial security, and give local governments guidelines on their financial development. In addition, it would have the authority to supervise and question financial regulators and local governments, making it a powerful institution rather than a toothless coordinating body, according to the report.
Xi’s order to create the organization reflects the President’s concerns about the financial risks facing China, after the stock market rout in the summer of 2015 and the mushrooming of illegal fundraising schemes that the government fears are a tinderbox for social unrest.
The previous financial regulatory framework – comprising the People’s Bank of China (PBOC), the China Banking Regulatory Commission (CBRC), the China Securities Regulatory Commission (CSRC) and the China Insurance Regulatory Commission (CTRC) – proved too fragmented to prevent or manage systemic risks, the South China Morning Post reports.
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