China mulls revising central bank law to improve macro-prudential framework

BEIJING, June 23 (Xinhua) -- Chinese lawmakers are reviewing a draft revision to the Law on the People's Bank of China that aims to further improve the macro-prudential institutional framework, coordinate development and security, and safeguard the bottom line of preventing systemic financial risks.

The draft revision was submitted on Tuesday to the ongoing session of the Standing Committee of the National People's Congress, the national legislature, for its first reading.

Pan Gongsheng, governor of the People's Bank of China (PBOC), when explaining the draft revision to lawmakers, said that the draft has eight chapters and 54 articles, and that it is designed to accelerate the improvement of the central banking system, further clarify the functions of the PBOC and improve its effectiveness in performing its duties.

The draft supplements and improves the duties of the PBOC, while clarifying the legal status of the digital renminbi, among other provisions.

In terms of maintaining financial stability, the draft clarifies the central bank's regulatory duties concerning the money market, the bill market and relevant financial infrastructure. It also stipulates that the central bank may take appropriate counter-cyclical and cross-cyclical adjustment measures to maintain financial market stability.