First Committee, one party, two conferences + local financial supervision bureau, collaborative supervisionmodel with Chinese characteristics

Since 2017, a new financial regulatory framework in mainland China has gradually taken shape. At thecentral level, the Financial Stability Development Committee of the State Council was set up, and the"three meetings in one line" was changed to "two sessions in one line", and the Bank of China Insurance Regulatory Commission was set up. The former CBRC and CIRC were assigned there sponsibility of drafting important laws and regulations on banking and insurance and the basic system of prudent supervision to the People's Bank of China.

In July 2017, the National Financial Work Conference was held in Beijing. It is proposed to set up the Financial Stability Development Committee of the State Council to streng then the macro-prudential management and systemic risk prevention responsibilities of the People's Bank of China. Its office is located in the People's Bank of China, which indicates that the People's Bank of China will play a more important role in the new financial regulatory framework.

At the local level, local financial supervision bureaus began to be established. After the National Financial Work Conference, The central government requires local financial super vision departments (including local financial offices, local financial work bureaus,etc.) to add the brand of local financial supervision administration, The supervision function will continue to be strengthened, forming misplaced supervision and supplement with the two sessions; Its supervision scopeis "7+4" institutions: 7 types of institutions refer to small loan companies, financing guarantee companies, regional equity markets, pawnshops, financial leasing companies, commercial factoring companies and local asset management companies; The four types of institutions refer to investment companies, farmers' professional cooperatives, social crowd funding institutions, local exchanges, etc. The above institutions have formed a horizontal and vertical financial supervision network, and have a clearer division of macro-prudential management, financial regulation and market supervision than before.

The Financial Stability Development Committee of the State Council mainly undertakes five major responsibilities, including coordinating financial stability and major issues of reform and development; The People's Bank of China has also been given more functions; Inaddition to monetary policy functions, the People's Bank of China is also responsible for macro-prudential management, systemically important institutions, financial infrastructure construction, basic laws and regulations, full-scale statistical analysis and Alert; Different from the People's Bank of China, which combines monetary policy functions with macro-prudential functions, the newly established Banking Insurance Supervision and Management Committee and the Securities and Futures Commission have more prominent micro-prudential supervision and behavioral supervision functions; Under the unified guidance of the Finance Committee and various regulatory agencies, local financial regulatory bureaus take on more financial regulatory responsibilities with the main goal of maintaining financial stability in the region.