The Chinese government has proposed major changes in financial regulation with plans that include merging of its insurance and banking regulators, amidst concerns over financial risks and growing debt in the economy.
The two separate regulators, which government says left some unclear areas in regulation, would hand over their roles to the People’s Bank of China, which would have a much higher regulatory role.
The country has been witnessing an explosion in debts levels in the economy, which has prompted the government to crack down on several major companies, as many fear this poses a threat to the country’s financial stability.
China will also establish a national market supervisory management bureau that would cover a wide range of activities such as quality supervision to food and drug safety under one roof to ensure fair competition in the market.
The changes are to be approved by the National People’s Congress legislature.