The Chinese government has overhauled its regulatory regime with a new, enlarged body that will take away some duties from the central bank.
China has formed a new agency to oversee all financial sectors except the securities industry, according to a plan announced at the National People’s Congress, absorbing the China Banking and Insurance Regulatory Commission which will cease to exist.
The China Securities Regulatory Commission (CSRC) will be elevated to become a government agency directly under the State Council. It will also take overnight of corporate bond issuance from the National Development and Reform Commission.
PBOC Changes
With regards to the People’s Bank of China (PBOC), changes include cutting county-level branches and adjusting staff pay, including in the new body, to the same level as the nation’s public servants.
The number of employees at central government departments will also shrink by 5 percent.
The organizational changes will allow Beijing to tighten its grip and centralize key policy decision-making as part of its commitment to effectively prevent and defuse major economic and financial risks in 2023.
