China's Central Bank Gains More Power in Xi's Regulatory Shuffle
- Shift is aimed at preventing financial risk, reducing overlap
- Combined CBRC and CIRC will oversee $43 trillion of assets
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China is giving its central bank the power to write the rules for the financial sector, as part of a sweeping overhaul aimed at closing regulatory loopholes and curbing risk in the $43 trillion banking and insurance industries.
The China Banking Regulatory Commission and the China Insurance Regulatory Commission will be merged in the biggest industry overhaul since 2003. Some of their functions, including drafting key regulations and prudential oversight, will move to the People’s Bank of China, according to a proposal unveiled Tuesday during the National People’s Congress.