简体中文
Chinese authorities are planning a raft of measures to reduce financial risks in key areas and improve regulatory supervision, Chinese newspaper Economic Information Daily reported Thursday.
These measures will affect systemically important banks, financial holding companies and fintech giants.
The measures for systemically important banks will come into effect on January 1, 2021 and will include additional regulatory requirements on increasing capital, leverage ratio, major risk exposure, corporate governance, recovery plan, information disclosure and data submission.
Besides a trial measure for the supervision and management of financial holding companies, regulatory authorities will also improve the institutional framework and formulate more specific operational rules for the supervision of these companies.
Regarding high-risk shadow banking, authorities will improve the regulatory system to ensure full coverage, unify the regulatory standards for similar institutions and products, and improve standards of risk classification.
This year is the final year in China's battle reducing financial risks. And China has made substantial progress in this, according to Liu Fushou, chief lawyer of the China Banking and Insurance Regulatory Commission (CBIRC). Uncontrolled expansion of financial assets has been fundamentally reversed, shadow banking risks have continued to fall, dropping by about 20 trillion yuan ($3.06 trillion) from its historical peak, and the disposal of non-performing assets has also advanced greatly.
Guo Shuqing, chairman of the CBIRC, pointed out that the current financial-related systems have many shortcomings, and the financial rule of law is still not sound. Thus, some basic legal formulation and revisions need to be planned and initiated early.
In addition, Guo said innovative supervision methods will be adopted to prevent risks among financial technology giants, including using supervisory technology and building a regulatory big data platform.
