China’s State Council recently announced an adjustment to the structure and responsibilities of China’s central bank, the People’s Bank of China:
- The State Council Financial Stability and Development Committee and its office will no longer be retained. Its responsibilities will be transferred to the office of the Chinese Communist Party’s (CCP’s) Central Financial Committee. The Secretariat of the State Council Financial Stability and Development Committee, previously located within the People’s Bank of China, will be transferred to the office of the CCP’s Central Financial Committee.
- The daily supervisory responsibilities for financial holding companies and other financial groups will be transferred to the China Banking and Insurance Regulatory Commission.
- The responsibilities for establishing and improving the basic system for the protection of financial consumers will be transferred to the China Banking and Insurance Regulatory Commission.
The People’s Bank of China will reduce 30 administrative positions and 6 leadership positions at the bureau level. After these adjustments, the People’s Bank of China will have 20 internal institutions, with 714 administrative positions and 87 leadership positions at the bureau level.
Chinese news website Aboluo published an article saying that analysts believe this move reflects Xi Jinping’s increasing centralization of power in the CCP’s Central Committee over the State Council, diminishing the role of Premier Li Qiang. Also, the China Banking and Insurance Regulatory Commission is believed to be under the control of Xi’s confidant He Lifeng.
Sources:
1. China Government website, October 13, 2023
https://www.gov.cn/zhengce/202310/content_6908743.htm
2. Aboluo, October 14, 2023
https://www.aboluowang.com/2023/1014/1965621.html