Chinese lawmakers have proposed making it a legislative goal to improve the quality and effectiveness of financial services in the real economy as part of a major overhaul of the country's banking supervision and administration law.
The Constitution and Law Committee of the National People's Congress reported to the NPC Standing Committee on Tuesday on revisions to the draft amendment to the law and recommended that the draft be submitted to the 24th session of the 14th NPC Standing Committee for further deliberation. The overhaul would be the most extensive revision to the law since it took effect on Feb 1, 2004.
Huang Haihua, spokesperson for the Legislative Affairs Commission of the NPC Standing Committee, said at a news conference on Friday that the second-review draft of the amendment is expected to introduce several major changes. These include adding the provision on improving the quality and effectiveness of financial services to the real economy as one of the legislative purposes of the law; aligning the law with the draft Financial Law by splitting Chapter Four — "Supervision and Administration Measures" — into separate chapters on supervisory measures and risk resolution; strengthening regulatory requirements and improving regulatory measures, including provisions for classified and tiered supervision of banking institutions; further clarifying the responsibilities of supervisory authorities and enhancing protections for banking consumers; and refining provisions on legal liability.
