Original title: The People’s Bank of China Law will be revised for the first time in 17 years. What new clauses are worth paying attention to?
CCTV, Beijing, October 24 (Reporter Chai Hua) According to China Voice of China Central Radio and Television “News Evening Peak” report, “Establish a good law, seek good governance”, the People’s Bank of China Law will usher in the first 17 years later Revised. On the evening of the 23rd, the People’s Bank of China announced the “People’s Bank of China Law of the People’s Republic of China (Revised Draft for Soliciting Comments)” (hereinafter referred to as the “Draft for Soliciting Comments”) to solicit public opinions. The “Draft for Comments” released this time involves increased responsibilities, digital currency, and increased penalties, which have received high attention from the market. What is the significance of revising the People’s Bank of China Law at this time? What does the increase, decrease or modification of related clauses mean for the financial sector?
Since the People’s Bank of China Law was revised in 2003, it has not been revised. The problem of financial legislation lagging behind the needs of financial management is more prominent. According to reports, the revision of the People’s Bank of China Law is an important measure to implement the central financial reform deployment, improve the top-level design of the financial rule of law, and support the steady development of the financial industry. He Ping, a professor at the School of Finance and Finance of Renmin University of China, said: “There are many new changes in the financial field. For example, the currency aspect is the introduction of digital currency. There are many discussions in the society on some monetary policies, including the issue of fiscal deficit monetization. (Revision) Need to respond to different opinions in the society. From 2003 to now, especially in China’s financial sector, there have been some new real changes under the new technical conditions, so the introduction of the new law on the positioning of the central bank and the implementation of other functions Is very important.”
Since the 2008 international financial crisis, countries have begun to re-examine the role of central banks, generally strengthening the central bank’s role in strengthening macro-prudential management and maintaining financial stability from the legal level, and highlight the central bank’s role in preventing and resolving systemic financial risks. The “Draft for Comment” released this time has revised and improved the responsibilities of the People’s Bank of China. There are 19 items in total, including the clear drafting of major laws and regulations in the financial industry, the formulation of a basic system for prudential supervision, three “coordinations”, and the organization and implementation of national financial security reviews. Responsibility.
In recent years, some risks exposed in the financial sector have impacted the stability of the financial system to a certain extent. The “Draft for Comment” released this time stipulates that the People’s Bank of China shall monitor and evaluate the overall soundness of the financial system, take the lead in preventing and resolving systemic financial risks; establish a clear financial risk handling responsibility system, and improve systemic financial risk handling measures Wait.
Dong Ximiao, chief researcher of Merchants Finance and a special researcher of the National Finance and Development Laboratory, believes that these increased responsibilities have highlighted and strengthened macro-prudential management and systemic risk prevention, which is in line with the trend of international financial regulatory reform. “Incorporate macro-prudential management into the scope of central bank management, and clearly stipulate macro-prudential policy tools, such as the establishment of a macro-prudential policy framework. This not only adapts to the trend of adjustment of global central bank responsibilities since the 2007 subprime mortgage crisis, but also more in line with The actual situation of my country’s strengthening of systemic regulatory risk prevention.”
It is worth noting that the “Draft for Comments” stipulates that the renminbi includes physical and digital forms, providing a legal basis for the issuance of digital currencies. At the same time, in order to prevent the risk of virtual currency, the “Draft for Comments” also pointed out that no unit or individual may produce and sell tokens, coupons and digital tokens to replace the renminbi in the market. How do the experts comment on this?
He Ping believes that this gives the central bank the legal status of digital currency and maintains financial order. “Currency should be a sovereign state governance issue. A sovereign country has only one currency system. This time it (the central bank digital currency) is clarified in the People’s Bank of China Law, and the legal positioning of digital currency will become clear. In the future, financial Order has been maintained, and the nature of currency has ensured the same status as other previous forms of currency.”
Dong Ximiao said that this move fills the legal gap in the digital renminbi and leaves room for financial supervision in the future digital economy era. “Proposed prohibitive regulations on private token issuance directly from a legal point of view provide a legal basis for further cracking down on illegal token issuance in the next step. In the future, financial technology is the focus and core competitiveness of the financial industry. Taking financial technology into account For the importance of the development of the entire financial industry, this time the proposed revision of the People’s Bank of China highlights the relevant requirements for financial technology supervision. For example, a special article is set up in Article 43 to clarify the relevant requirements for financial technology management, which is helpful To better strengthen the supervision of financial technology and promote the standardized development of financial technology.”
In addition, in response to the low cost of illegal financial market violations, the “Draft for Comments” has increased the PBC’s penalties for financial violations, stipulating that serious violations can be punished aggravated, and the maximum fine will be increased to 20 million yuan; Bank-licensed institutions have increased penalties such as ordering business suspension, revocation of licenses, and market bans. Dong Ximiao said that it is more important to give the central bank law enforcement powers that fit its responsibilities. “In the responsibilities of the central bank, it further clarifies that the central bank can have supervision and inspection, on-site inspection measures, etc., and gives the central bank its law enforcement powers that are closely related to its responsibilities. Improve the efficiency of supervision.”Return to Sohu to see more
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