China’s central bank has issued a set of draft regulations to tighten up supervision of local financial institutions, but some proposed rules have raised concerns among industry insiders.
The draft Regulations on Local Financial Supervision and Administration target 11 types of local financial institutions, and aim to clarify the responsibilities of the central and local governments and set up a unified regulatory framework. The People’s Bank of China (PBOC) released the draft rules on the last day of 2021 for public comment, the window for which has closed, but no date has been announced for when the rules will be finalized.
