China central bank sets up department to improve financial oversight

The PBOC established the macro-prudential management bureau to draft rules, monitor and handle financial systemic risks, and to advise on currency issues including yuan convertibility, according to a statement published BY A government agency.

Feb 02, 2019 06:02 IST India Infoline News Service

China Debt Crisis
The People’s Bank of China (PBOC) has set up a department to oversee and eliminate financial risks, as part of its restructuring of departments and personnel.

The PBOC established the macro-prudential management bureau to draft rules, monitor and handle financial systemic risks, and to advise on currency issues including yuan convertibility, according to a statement published by the State Commission Office of Public Sectors Reform. The new agency will take over some of the duties of the Monetary Policy II Department, which has been disbanded.

The statement reaffirms the central bank’s expanded role in financial oversight and policy coordination, powers it assumed in early 2018 after an overhaul of the financial regulators.

The bank should “construct a coordination mechanism among development plans, fiscal policy” and financial policy, promote economic monitoring and improve policy research, it said.

Among other changes to the PBOC structure and personnel:
  • The PBOC, which is also the office of the State Council Financial Stability and Development Commission, will set up a secretariat to assist the office
  • The central bank will take the lead in coordinating tasks related to national financial security, a new duty not included in the previous structural plan
  • Together with other government departments, it will draft the basic rules for wealth-asset management products, corporate bonds and derivatives
  • The PBOC will establish a national financial database
 
Source: Bloomberg

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