The head of the Chinese central bank says that it is set to play a more important role following the launch of changes to China’s financial regulatory framework.
Speaking at a press conference held on 9 March as part of the 13th National People’s Congress, Zhou Xiaochuan said that the siting of China’s Financial Stability and Development Commission‘s office within the People’s Bank of China served as a clear indication of the more influential role that the central bank will play under the new financial regulatory system.
The Financial Stability and Development Commission was established towards the end of 2017, to serve as an overarching regulatory body that would improve coordination between China’s disparate fiscal authorities.
According to Zhou PBOC and the Financial Stability and Development Commission will play an instrumental role in correcting the prevailing deficiencies in China’s regulatory system.
“Firstly, there are still certain blanks in financial regulatory…and these blanks need to be supplemented as quickly as possible,” said Zhou.
“Secondly, there are certain rules within the financial regulatory system that have produced a number of defects, so we need to strengthen the formulation of fiscal regulations.
“In addition to this, some financial institutions have already seen risks arise that need to be seized and disposed of, in order to maintain the health of the financial system.”
According to Zhou PBOC will “take the lead in strengthening co-ordination between financial institutions, especially regulatory institutions, and raise the efficiency of coordination.”