Vice premier Liu He and the committee he oversees will be given more authority in a move to strengthen coordination between central and local government efforts.
The Financial Stability and Development Committee will set up a «regional coordination mechanism», according to a statement released by the People’s Bank of China (PBoC).
The committee was originally launched two years ago with the exact purpose of coordination. The announcement will now give it authority to convene meetings about financial stability through its provincial branches with various parties including banking, insurance, securities and foreign exchange regulators as well as local economic planners, financial service and fiscal departments.
«It aims to strengthen the coordination between central and local governments in terms of financial regulation, risk disposal, information sharing and consumer protection,» said an «SCMP» report citing the statement which also included a roster change in the committee.
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The committee, led by He who was in Washington to sign the phase one trade deal with the U.S., has already visibly upped its efforts to provide necessary support. It has already held five meetings over the last month – well above its previous one meeting per month – and vowed to support small businesses in its 14th meeting through access to credit.
Stability is very much warranted in China’s financial industry which is undergoing a historic opening of markets just after several high-profile bank failures in 2019 which included Baoshang Bank, Bank of Jinzhou and Hengfeng Bank.
