China’s top banking regulator has flagged the accelerated launch of new legislation to ensure the stability of the Chinese financial system.
Guo Shuqing (郭树清), chair of the China Banking and Insurance Regulatory Commission (CBIRC) and party secretary of the Chinese central bank, called for “improving the financial security network and long-term effective mechanisms for risk disposal.”
To this end, China will “accelerate the release of a financial stability law, and confirm trigger standards, procedural mechanisms funding sources and legal liability for the disposal of financial risk.”
“Under the precondition of strengthening guarantee mechanisms for financial stability, we will establish complete financial risk disposal systems, and confirm the relationship between regulatory institutions and disposal institutions.
“We will distinguish between conventional risk, sudden risk and major risk, and make rational usage of various disposal measures and instruments.
“Financial stability guarantee funds, deposit insurance funds and other industry guarantee funds cannot become ‘cashiers,’ and we must improve professional functions, strengthen organisational systems and make full use of the role of market-based, rule-of-law based disposal platforms.”
Guo made the remarks in an article entitled “Strengthening and Improving Modern Financial Regulation (Earnestly Studying and Implementing the Spirit of the CCP’s 20th National Congress)” (加强和完善现代金融监管（认真学习宣传贯彻党的二十大精神)) that was published by the People’s Daily on 14 December.