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China's top legislature Friday began to debate on a bill submitted by the State Council to allow the would-be banking regulatory body to replace the central bank to exercise regulatory powers.
The establishment of the Chinese Banking Regulatory Commission (CBRC) is part of a government restructuring plan ratified last month at the First Session of the 10th National People's Congress (NPC).
The purpose of setting up the regulatory body is to tighten financial supervision, ensure the safe, stable and efficient operation of China's financial institutions and strengthen their ability to deal with financial risk, said Cao Kangtai, director of the Legislative Affairs Office under the State Council, during the second meeting of the 10th NPC Standing Committee.
According to the restructuring plan, the main function of the CBRC will be to supervise and administer China's banks, asset management companies, trust and investment companies and other financial institutions that handle deposits, Cao said.
Since China's current laws stipulate that only the central bank has banking regulatory power, the laws will be amended to ensure the smooth implementation of the restructuring plan, Cao said.
Given that laws to be amended requires lengthy in-depth research into a series of problems, Cao said, the State Council has suggested the amendments so that the CBRC will be able to fulfill its responsibilities and smoothly carry out reforms in the financial sector.
(Xinhua News Agency April 26, 2003)
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