Aimed to maintain Chinese financial stability while decreasing the systemic risks, the proposed agency will report to the cabinet and will not hinder the operation of the existing regulatory bodies, as reported by Reuters.
The People’s Bank of China (PBOC) has submitted a proposal for the creation of the supervisory agency that will not impact the roles of existing industry regulators. The proposal was okayed by the state council.
The new body is expected to boost the supervision of cross-asset financial products and innovations, improve information sharing and establish an accounting system across financial sectors.
Currently, China has five financial watchdogs, including the PBOC, CSRC, the China Banking Regulatory Commission, the China Insurance Regulatory Commission and the State Administration of Foreign Exchange.
The exact time frame for the formation of the agency has not been communicated yet.
