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What China’s Powerful Financial Regulator Means for PBOC

  • Central bank to cede some regulatory functions to new body
  • China’s financial regulatory system will resemble Australia’s
Bloomberg business news
Chinese President Xi Orders Biggest Regulatory Revamp in DecadesSource: Bloomberg
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China’s sweeping changes to the financial regulatory system will see the central bank lose some of its functions to a new and enlarged oversight body, leaving it focused on broader economic and financial stability management.

The banking and insurance watchdog will be absorbed into a new bureau — a national financial regulatory administration — to oversee all financial sectors except the securities industry, according to a plan released at the National People’s Congress on Tuesday. Under the revamp, the People’s Bank of China will no longer have oversight of financial holding companies and financial consumer protection.