Tags: chinese | regulators | coordination

Chinese Regulators Don't Coordinate Properly, State Audit Finds

Tuesday, 27 Jan 2015 06:41 AM

China’s four financial regulators don’t coordinate properly and an unclear division of authority has affected policy implementation, according to a government audit.

The National Audit Office found that the lack of coordination between the People’s Bank of China and the agencies overseeing banking, insurance and securities had led to “fragmented regulation” in the bond market, creating room for exploitation.

China’s government has four agencies overseeing the financial industry: the PBOC, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the China Insurance Regulatory Commission. They all report to the State Council, the nation’s cabinet led by Premier Li Keqiang.

“Shadow banking and China’s financial markets are developing rapidly to blur traditional business lines, and a single financial regulator can only see part of the picture,” said Xu Gao, chief economist at Everbright Securities Co. in Beijing.

The government put PBOC Governor Zhou Xiaochuan in charge of coordinating financial regulation in August 2013. The PBOC said in April 2014 that three meetings had been held. It hasn’t given an update since.

The PBOC didn’t immediately reply to faxed questions seeking comment on the report.

In April 2014, China’s central bank published a statement condemning a report by the Financial Times on infighting between the PBOC and CBRC. The two agencies have “coordinated and supported each other to jointly promote reform, development and stability of China’s financial industry,” the central bank said at the time.

 

© Copyright 2017 Bloomberg News. All rights reserved.

 
1Like our page
2Share
Asia
China's four financial regulators don't coordinate properly and an unclear division of authority has affected policy implementation, according to a government audit.The National Audit Office found that the lack of coordination between the People's Bank of China and the...
chinese, regulators, coordination
235
2015-41-27
Tuesday, 27 Jan 2015 06:41 AM
Newsmax Inc.
 
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
© Newsmax Media, Inc.
All Rights Reserved