BEIJING: China will continue to improve the macro-prudential policy framework that is in line with its national conditions, in order to support the new development pattern of “dual circulation,” a central bank official said Wednesday.
It aims to support the formation of a new development pattern that takes the domestic market as the mainstay while letting domestic and foreign markets boost each other, said Pan Gongsheng, deputy head of the People’s Bank of China.
Pan said since the global financial crisis in 2008, many international organizations and major economies were engaged in improving financial supervision system, and the building of macro-prudential policy framework is a core component.
Pan said China will issue macro-prudential policy guidelines in a timely manner and enhance the overall design and governance mechanism of China’s macro-prudential policies.
Emphasis will be placed on improving the macro-prudential monitoring, assessment and early warning systems in key areas such as real-estate finance, the foreign-exchange market, the bond market, shadow banking and cross-border capital flows, he said.
In addition, Pan stressed the need to strengthen regulation of systemically important financial institutions and financial holding companies.
It is necessary to strengthen coordination between macro-prudential policies, monetary policies and micro-prudential regulation policies, and give full play to the synergy of those policies, according to Pan. Meanwhile, macro-prudential policies should coordinate with fiscal policies, industrial policies and credit policies, among others, to provide better financial services for the real economy, he said.
–The Daily Mail-CGTN
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