Insiders said that the establishment of the coordination mechanism will enhance the consistency of central and local financial supervision, and promote better prevention of financial risks and deepening financial reform. In the process of epidemic prevention and control and resumption of production, the establishment of coordination mechanism is helpful to strengthen the joint efforts of central and local policies and win the epidemic prevention and control war with all one's strength. With the enhancement of coordination between central and local financial supervision, the construction of local financial supervision system and mechanism is also constantly improving. At present, many places have promulgated local financial supervision regulations, and more local financial supervision legislation is accelerating.
The local coordination mechanism has been vigorously implemented.
On March 12, Shanghai, Jiangxi, Shaanxi and Sichuan announced the establishment of the local coordination mechanism of the Finance Committee Office. Previously, this mechanism has been established in Inner Mongolia, Jiangsu, Guangdong and other places. It is reported that coordination mechanisms in other provinces are also under planning and construction.
The relevant person in charge of the central bank said that the coordination mechanism is guided by guidance and coordination, mainly by strengthening overall coordination to promote the implementation of the relevant arrangements of the CPC Central Committee, the State Council and the Financial Committee. Yin Zhentao, deputy director of the Law and Finance Research Office of the Institute of Finance of China Academy of Social Sciences, said in an interview with the Economic Information Daily that after the outbreak of the epidemic, all localities need to concentrate on major events and deal with various problems as a whole. In this context, it is more important to establish the local coordination mechanism of the Finance Committee Office.
According to Yan Baoyu, Party Secretary and President of Chengdu Branch of the Central Bank, the coordination mechanism of Sichuan Province will focus on strengthening financial services to the real economy, improving supporting policy programs, and fully supporting epidemic prevention and control and resuming production. Shanghai said that it will give full play to the role of the coordination mechanism, focus on promoting the implementation of the relevant notice of the central government on strengthening financial support for epidemic prevention and control, go all out to do a good job in epidemic prevention and control, and support enterprises to resume work and production.
At the beginning of this year, the Office of the State Council Financial Committee issued a document saying that it would establish a local coordination mechanism for the offices of financial committees in all provinces (autonomous regions and municipalities) and strengthen cooperation between the central and local governments in financial supervision, risk management, information sharing and consumer rights protection.
Dong Ximiao, a special researcher at the National Finance and Development Laboratory, said in an interview with the Economic Information Daily that improving the coordination of central and local supervision has always been an important focus of financial supervision system reform. 20 17 The National Financial Work Conference decided to set up the the State Council Financial Stability and Development Committee, mainly to solve the horizontal coordination of financial supervision and make up for the lack of separate supervision. However, China has not yet established a vertical financial supervision and coordination mechanism, which is prone to the separation of central and local supervision space in practice, which may lead to problems such as difficult implementation of supervision policies and difficult coordination of serving local governments. With the implementation of the coordination mechanism, this problem is expected to be solved step by step.
The coordination of financial supervision has been continuously strengthened.
According to industry insiders, the establishment of the local coordination mechanism of the Finance Committee Office is an objective need to fight a tough battle to prevent and resolve financial risks, which will further compact the responsibility of local risk disposal and prevent the occurrence of major financial risks within its jurisdiction.
"In recent years, in order to effectively cope with the rapid expansion of local finance and the gradual exposure of financial risks, China has gradually entrusted local financial supervision functions and risk disposal responsibilities to local governments." Dong Ximiao said that the 20 17 National Financial Work Conference pointed out that local governments should strengthen the responsibility of territorial risk disposal in accordance with the unified rules of the central government on the premise of insisting that financial management is mainly the responsibility of the central government. Since 20 18, some local governments have upgraded financial offices (bureaus) to local financial supervision and management bureaus, and the financial management model of local governments in China has taken shape.
Since the beginning of this year, a number of financial supervision departments have been deployed intensively to further strengthen the prevention of local financial risks. The central bank's working conference in 2020 proposed that we should resolutely win the battle to prevent and resolve major financial risks, and compact the local government's territorial risk disposal responsibility and maintain stability as the first responsibility. The 2020 National Work Conference of China Banking and Insurance Regulatory Commission indicated that it will continue to work with local governments to deepen the reform and restructuring of state-owned enterprises and resolve hidden debt risks.
Yin Zhentao pointed out that at present, the shortcomings of local financial supervision are weak supervision ability and insufficient supervision experience. The function of local financial supervision is complex, and the supervision institutions are small and scattered, which also brings great challenges to local risk prevention. The establishment of the coordination mechanism will further improve the coordination and division of labor of financial supervision and help local governments improve their ability to guard against financial risks.
With the implementation of the coordination mechanism, the next step at the local level will focus on improving the ability of coordination and supervision to prevent the occurrence of major financial risks within its jurisdiction. Shanghai proposed that the coordination mechanism will focus on building a normalized working mechanism for the investigation of major financial risks in Shanghai and strengthen the monitoring, tracking and disposal of financial risks in Shanghai. Jiangsu proposed that it will concentrate on dealing with the risks of individual small and medium-sized financial institutions and firmly hold the bottom line that systemic financial risks will not occur.
It is worth mentioning that with the continuous strengthening of the coordination between the central and local financial supervision, the local financial supervision system and mechanism are also constantly improving. At present, Shandong, Hebei, Sichuan, Tianjin and other places have promulgated local financial supervision and management regulations, and more local financial supervision and management regulations such as Beijing and Shanghai are also in the pipeline. Insiders pointed out that the promotion of local financial supervision legislation is of great significance for preventing regional financial risks and even systemic financial risks.
Related supporting systems are in the pipeline.
Industry experts pointed out that the local coordination mechanism of the Finance Committee Office is a brand-new design of the financial supervision mechanism. In the future, it is necessary to gradually improve the relevant supporting systems and refine the work measures to give full play to the greater value of the coordination mechanism.
Dong Ximiao said that many local governments have already established a financial work deliberation and coordination mechanism, and how the local coordination mechanism of the Finance Committee Office and the provincial government's financial work deliberation and coordination mechanism support each other is a future challenge. In the same administrative region, there are two sets of financial coordination mechanisms at the same time, which may lead to uncoordinated coordination mechanisms. It is suggested that it should be unified into the local coordination mechanism of the Finance Committee Office as soon as possible, so as to truly achieve the effect of "1+ 1 > 2" between the central and local governments and departmental cooperation.
Yin Zhentao pointed out that the Finance Committee belongs to the top financial stability mechanism, and how to implement this mechanism at the local level needs to continue to clarify the relevant daily management system. Specifically, institutionalization is manifested in the need for fixed departments and personnel, as well as perfect rules and regulations, accountability mechanisms and assessment mechanisms.
The central bank said that in the next step, the local coordination mechanism of the Finance Committee Office will proceed from reality, constantly explore and improve in practice, fully mobilize the enthusiasm of the central and local governments, and jointly create a good financial environment.
Shaanxi pointed out that the establishment and formal operation of the supervision and coordination mechanism has built a platform for all supervision units to strengthen coordination and convergence. On the basis of the introduction of working rules, further establish working systems such as meeting system, information sharing system and liaison system. Shanghai also said that it will step up the establishment and improvement of relevant supporting systems for the coordination mechanism.