On April 6, the people's Bank of China, together with relevant departments, drafted the financial stability law of the people's Republic of China (Draft for comments) (hereinafter referred to as the financial stability law) for public comments. The main concerns are as follows:
First, the introduction of the financial stability law meets the needs of preventing and resolving financial risks. In recent years, China has made breakthroughs in preventing and resolving financial risks. Including steady decline of macro leverage ratio, reasonable reduction of shadow banking scale, centralized rectification of Internet financial chaos, proper disposal of problem financial institutions, and practical prevention of disorderly expansion of capital. With continuous efforts, China's financial risks tend to converge as a whole, and some experience has been accumulated in the disposal of risk events in the early stage. However, it should be noted that, on the one hand, the task of preventing and resolving financial risks in China is still arduous. The change of financial risk presents the characteristics of strong concealment, decentralization and diversification. There is the possibility of cross market and cross industry transmission, which requires systematic and targeted response ideas. On the other hand, it can effectively summarize the previous reasonable practices of risk disposal and create a long-term mechanism for financial risk disposal, which can optimize the workflow and realize the "timely discovery, effective operation and proper disposal" of financial risks. Therefore, the introduction of the financial stability law conforms to the needs of China's financial risk disposal work and helps to better promote the prevention and resolution of financial risks in the future.
Second, the financial stability law is detailed and comprehensive, reflecting the foresight and operability. The financial stability law is divided into six chapters, including general provisions, financial risk prevention, financial risk resolution, financial risk disposal, legal liability and supplementary provisions, involving 48 specific contents. Specifically: first, it defines the main responsibility of the financial commission to prevent and resolve financial risks. The financial stability law stipulates that the financial commission is responsible for overall planning and coordination, and is responsible for the prevention, resolution and disposal of major financial risks, which once again defines the core position of the financial commission in preventing and resolving major financial risks. Second, it covers the whole process of financial risk disposal. Including detailed provisions on financial risk prevention, resolution and disposal. Among them, some provisions are the summary of the disposal experience of past risk events. For example, the content of establishing a "receiver" or facilitating the establishment of a "red line" of a financial institution and a custodian according to law. At the same time, it further defines the territorial responsibility of local governments and the supervision responsibility of financial supervision departments, so as to make relevant subjects perform their respective duties, contribute to the early detection and early disposal of financial risks, and minimize the social impact and disposal cost. Third, optimize the system design in combination with China's reality and drawing on international experience. For example, the government work report proposed the establishment of a financial stability guarantee fund, which was further explained in the financial stability law, mainly including the source of funds and repayment.
Third, the financial stability law is a landmark event in China's efforts to prevent and resolve financial risks. It is a key link in maintaining financial stability and helps to make up for regulatory weaknesses. The construction of financial legal system is not only an important part of governing the country according to law, but also an important means to promote the marketization and legalization of financial work. On the one hand, as China has not yet formed a systematic system design for financial stability, various legal provisions are relatively scattered, some provisions are difficult to implement, and there are difficulties in landing, resulting in insufficient connection and smooth promotion of relevant work. The introduction of the financial stability law provides a legal basis for the prevention and resolution of financial risks, and provides clear provisions for key issues and market concerns, which is conducive to the standardization and process of financial risk disposal and improve work efficiency. On the other hand, starting from the top-level design, the financial stability law makes overall planning, which helps to strengthen financial supervision, make up for the shortcomings of supervision, and provide fundamental guidance for the prevention and resolution of financial risks. The financial stability act will also complement other laws and regulations and jointly escort the steady development of the financial system.
