2 April: The PBOC urges faster enactment of the Financial Stability Law and other legal measures to enhance financial risk management, according to an article published in China Finance, a magazine under the central bank.
The article, co-authored by three officials from the PBOC’s Financial Stability Bureau and the Deposit Insurance Corp, also calls for stricter supervision of data quality in financial institutions to avoid risks, citing the lessons learned from the Silican Valley Bank crisis.
Moreover, the article suggests that the deposit insurance system should be fully utilized to handle troubled banks in a quick and orderly way, so as to prevent systemic risks from spreading.
The article stresses that China’s commercial banks are generally sound and stable.
The authors also recommend that China should build up sufficient capital reserves for financial risk disposal, so as to ensure timely and effective resolution of potential risks.