The law of the peoples Bank of China meets the overhaul, and the legal responsibilities of the central bank are significantly expanded

category:Finance
 The law of the peoples Bank of China meets the overhaul, and the legal responsibilities of the central bank are significantly expanded


The central bank said that the Fourth Plenary Session of the 19th CPC Central Committee clearly proposed to build a modern central bank system. On this basis, the CPC Central Committee and the State Council put forward new requirements for the central bank to perform its duties, such as strengthening macro Prudential Management and preventing systemic financial risks, coordinating the supervision of systemically important financial institutions, financial holding companies and important financial infrastructure, coordinating the overall responsibility for the financial industrys comprehensive statistics, and increasing the punishment for financial violations. These contents need to be fully reflected in the law of the peoples Bank of China, so as to provide legal guarantee for the reform. The revised draft contains 9 chapters and 73 articles. It is based on the practical experience of financial macro-control and risk management in recent years, and reflects the mature and effective system in the amendment law, and fully draws on the advanced legislative experience of central banks in various countries after the crisis and relevant international standards.

It is worth noting that, in view of the fact that the central bank is currently conducting a pilot study on digital RMB, in order to prevent the potential risks after the promotion of digital RMB in the future, the revised draft clearly states that RMB includes physical form and digital form, and no unit or individual is allowed to make or sell digital token.

In order to improve the governance system of the central bank, the revised draft added new requirements for establishing and improving the reserve system and capital replenishment mechanism, stipulated the formulation of central bank accounting system and independent financial budget management system, maintaining openness and transparency, accepting audit supervision according to law, drawing special reserve funds according to the nature of assets and risk conditions, and using them to write off asset losses.

In addition, the revised draft continues to adhere to the principle that the central bank does not directly subscribe to or underwrite treasury bonds and other government bonds, and does not provide loans to local governments.