(Yicai Global) July 26 – China’s central bank, the People’s Bank of China (PBOC), will ratchet up risk monitoring efforts focusing on risks in key sectors and further develop the financial ‘firewall’ and the risk contingency mechanisms, it said yesterday. The aim is to tighten regulation over transactions on financial markets and internet finance businesses.
PBOC convened a meeting of branch managers over the past two days, it announced online. The bank has decided to step up coordination for financial regulation in line with the functions of the newly established Financial Stability and Development Committee of the State Council, ramp up macro-prudential management and counter-cyclical regulation, continuously push forward financial infrastructure construction and management to improve the bank’s financial services and management operations.
Efforts will also be made to step up and enhance macro-level regulation, innovate existing regulation models and style adhering to the prudent and neutral monetary policy. It will strike a balance between growth stabilization, economic restructuring and energy consumption control and maintain reasonable growth in monetary credit and liquidity stability, thus creating a favorable monetary and financial environment for the supply-side structural reform.
The bank will also improve the overall efficiency and quality of financial services revolving around the development of the real economy. It will encourage and guide financial institutions to increase support for key sectors and weak links, promote financing facilitation, and reduce financing costs in the real economy. The central bank will push forward financial product innovation oriented toward the real economy, ramp up ‘high precision’ poverty alleviation efforts through financial services and boost inclusive and green finance development.Keywords: financial market, pboc, Regulator, institution, macro-level regulation, Monetary, Policy, Growth, stability, Reform, restructuring, Credit, Liquidity