China regulator to speed reform of smaller financial institutions
FILE PHOTO: Li Yunze, director of China's National Financial Regulatory Administration (NFRA), speaks at the Lujiazui Forum in Shanghai, China June 8, 2023. REUTERS/Jason Xue/File Photo
BEIJING (Reuters) - A key Chinese financial regulator said on Sunday it would accelerate reform of small and midsize financial institutions as it steps up its oversight of the sector.
The National Financial Regulatory Administration (NFRA) will collaborate with the General Administration of Financial Supervision to tighten supervision of the financial industry other than the securities market, director Li Yunze said in an interview with state media Xinhua.
NFRA, the watchdog overseeing all aspects of China’s $57 trillion financial sector, along with other departments will focus on dealing with “key people” and “key behaviours” that are causing major financial risks and undermining market order, including illegal third-party intermediaries, he said.
Li said the NFRA will also take advantage of current favourable opportunities to increase the promotion of risk disposal.
It will promote small and midsize banking institutions to optimise their structure, improve quality and increase efficiency, Li said.
He added that they will encourage insurance companies to return to their original function of protection, and guide asset management, non-banking and other institutions to adhere to their positioning.
“At present, the operation of China's financial sector is generally stable and the overall risk resistance is strong,” he said.
"We are fully confident and have the conditions and ability to increase vitality through reform, solve problems through development and properly respond to the challenges of various types of financial risks by increasing the volume of inventory."
(Reporting by Mei Mei Chu; Editing by Christopher Cushing and William Mallard)
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