Chinese Central Bank Flags Expansion of Macro-prudential Policy Tools, Scrutiny of Industrial-Financial Integration

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A recent work meeting held by the People’s Bank of China (PBOC) has committed to the adoption of a greater range of macro-prudential policy tools, as well as greater scrutiny of the ties between industry and finance.

PBOC convened its 2022 Macro-prudential Regulatory Work Teleconference on 28 February.

At the meeting PBOC officials said that they would “further diversify the toolkit of macro-prudential policies,” as well as “further improve the twin-pillar adjustment framework of monetary policy and macro-prudential policy, and effectively employ the role of macro-prudential regulation with respect to cross-cyclical adjustment and the prevention of risk contagion.”

PBOC officials also said that they would “strengthen supervision and standardisation of the integration of industry and finance.”