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在线翻译:
szdaily -> Business
Central bank to play bigger role to control risk
    2017-July-17  08:53    Shenzhen Daily

THE central bank will take on a beefed-up role managing systemic risk in the country’s financial markets, broadcaster China Central Television said Saturday, quoting President Xi Jinping.

Speaking at the National Financial Work Conference, Xi said China would set up a financial stability committee under the State Council, boost the People’s Bank of China’s role managing financial risks and create more cohesive regulation.

“We will strengthen the People’s Bank of China’s role in macro-prudential management and in averting systemic risk,” Xi said, adding the country would increase the accountability of regulators and the supervision over regulatory bodies.

Ahead of the closed-door event, economists had widely expected the meeting to focus on how the central bank could better coordinate with the country’s three main financial regulators to manage risk in the financial system.

China’s financial regulators are gathered in Beijing in a once-in-five-years meeting to discuss how better to tackle weakness in the financial system.

The main regulators include the China Banking Regulatory Commission (CBRC), the China Securities Regulatory Commission and the China Insurance Regulatory Commission.

The government has taken measure to ensure the stability of the economy and financial system, crack down on risky behavior by insurers and lenders, as well as target high levels of corporate debt.

Establishing the committee is noteworthy, according to Ming Ming, a former central bank monetary policy official who’s now head of fixed-income research at CITIC Securities in Beijing. The name signifies that the panel should be a ministry-level entity directly under the State Council that’s mandated to oversee overall financial coordination, he wrote in a report yesterday.

“Key priorities for the central bank and the new commission will be to stabilize the nonperforming loans in the Chinese banking system, manage shadow banking risks and manage risks related to the escalating level of corporate debt,” said Rajiv Biswas, chief Asia-Pacific economist at IHS Markit in Singapore.

Investors have long supported the idea of a unified body to oversee the regulators that oversee the different parts of China’s financial system, though there is little sign that a super-merger of the regulators is imminent.

In 2015, a poorly coordinated response to a stock market crash in China drew scrutiny on the government’s response. Premier Li Keqiang openly criticized the financial regulators as not responding sufficiently.

In March this year, new CBRC chief Guo Shuqing said the banking regulator was collaborating with other regulators to create a framework to close loopholes in rules for cross-market financial products.

(SD-Agencies)

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