Economic news

China refines financial stability law to strengthen risk prevention

2024.07.01 03:23

BEIJING (Reuters) – China’s new financial stability law draft bill improved provisions on financial risks prevention and control, according to draft revisions released on Monday.

Revisions to the draft bill underwent the second round of review by China’s top legislature, the National People’s Congress (NPC) standing committee, and are open for public feedback until July 27th, according to a post on the NPC website.

The bill aims to establish a comprehensive cross-agency mechanism for risk detection and mitigation within the financial system, as the country grapples with a prolonged real estate crisis and vulnerabilities in smaller banks.

The top legislature usually passes bills after three rounds of reviews.

The latest revisions stipulate that financial regulators and local governments should fulfill the responsibilities of preventing, defusing and handling financial risks, and should prevent and investigate illegal financial activities.

Establishment of a financial institution and engagement in financial business activities must be approved by government financial departments, it said.

The draft also removed provisions about responsibilities of the Financial Stability and Development Committee (FSDC), under the State Council. It said a central financial work leading body, which it did not identify, would be responsible for decision-making, top-level design, supervision of implementation of financial stability and development policies.

The FSDC was dissolved and its functions transferred to the new Central Financial Commission (CFC) in March 2023 as part of a broader reorganisation of government and party institutions.

China’s financial system faces multiple challenges as the country’s economic recovery loses steam amid a sluggish property market and increasing financial stress on already heavily indebted local governments.

© Reuters. FILE PHOTO: Chinese officials and delegates applaud at the closing session of the National People's Congress (NPC) at the Great Hall of the People in Beijing, China March 11, 2024. REUTERS/Florence Lo/File Photo

The long-awaited bill underwent its first review in December 2022 and said a financial stability fund would be set up to tackle major systemic risks.

The latest revisions also follow the “spirit” of a key gathering Central Financial Work Conference in October, which said China will comprehensively strengthen financial supervision and resolve financial risks, according to the NPC post.



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 98,039.27 0.71%
ethereum
Ethereum (ETH) $ 3,865.30 1.04%
tether
Tether (USDT) $ 1.00 0.07%
xrp
XRP (XRP) $ 2.32 2.22%
solana
Solana (SOL) $ 243.35 6.92%
bnb
BNB (BNB) $ 729.46 2.43%
dogecoin
Dogecoin (DOGE) $ 0.435327 4.19%
cardano
Cardano (ADA) $ 1.18 3.27%
usd-coin
USDC (USDC) $ 1.00 0.02%
staked-ether
Lido Staked Ether (STETH) $ 3,860.52 1.03%
tron
TRON (TRX) $ 0.322561 2.66%
avalanche-2
Avalanche (AVAX) $ 51.43 1.34%
shiba-inu
Shiba Inu (SHIB) $ 0.000031 1.37%
the-open-network
Toncoin (TON) $ 6.89 2.46%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,564.53 0.54%
polkadot
Polkadot (DOT) $ 10.59 4.10%
chainlink
Chainlink (LINK) $ 23.86 1.40%
stellar
Stellar (XLM) $ 0.480559 0.03%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,879.22 0.44%
sui
Sui (SUI) $ 4.32 19.36%
bitcoin-cash
Bitcoin Cash (BCH) $ 591.03 4.06%
hedera-hashgraph
Hedera (HBAR) $ 0.289493 3.87%
weth
WETH (WETH) $ 3,863.79 1.00%
litecoin
Litecoin (LTC) $ 137.34 7.24%
near
NEAR Protocol (NEAR) $ 8.05 11.27%
uniswap
Uniswap (UNI) $ 15.77 4.23%
pepe
Pepe (PEPE) $ 0.000022 3.84%
leo-token
LEO Token (LEO) $ 9.36 1.67%
aptos
Aptos (APT) $ 14.06 4.88%
wrapped-eeth
Wrapped eETH (WEETH) $ 4,075.58 1.09%
internet-computer
Internet Computer (ICP) $ 14.60 3.15%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.693048 0.45%
crypto-com-chain
Cronos (CRO) $ 0.203915 1.47%
ethereum-classic
Ethereum Classic (ETC) $ 36.29 0.46%
render-token
Render (RENDER) $ 10.37 23.94%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 2.05 13.31%
vechain
VeChain (VET) $ 0.065734 6.57%
bittensor
Bittensor (TAO) $ 720.28 11.48%
usds
USDS (USDS) $ 0.998634 0.12%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.26%
filecoin
Filecoin (FIL) $ 7.89 0.88%
arbitrum
Arbitrum (ARB) $ 1.14 3.02%
hyperliquid
Hyperliquid (HYPE) $ 12.81 21.36%
blockstack
Stacks (STX) $ 2.77 6.78%
kaspa
Kaspa (KAS) $ 0.161876 3.49%
aave
Aave (AAVE) $ 258.75 4.11%
mantle
Mantle (MNT) $ 1.15 14.49%
cosmos
Cosmos Hub (ATOM) $ 9.87 2.33%
celestia
Celestia (TIA) $ 8.63 7.33%
algorand
Algorand (ALGO) $ 0.453993 5.17%