China’s central bank, the People’s Bank of China (PBOC) set up a fintech committee to enhance the research, planning and coordination of work on financial technology.
People’s Bank of China (PBOC)
The PBOC branch in charge of technology will act as chairman of the committee. Its members include PBOC departments in technology, monetary policy, financial market, financial stability and payment clearance. The committee will work hand in hand with businesses, academia and researchers to push forward the healthy, orderly development of fintech in China.
The fintech committee suggests that regulators officially put the supervision of financial technology on the agenda.
Zhang Lijun, management consulting partner of China’s financial industry with Pricewaterhouse Coopers, said that the central bank will do three things after the establishment of the fintech committee:
- Firstly it will focus on the study of new problems of the market that have emerged under the fintech background to lay foundation for future policies.
- Secondly, it will establish a fintech regulatory mechanism that is in line with the country’s conditions to guide the development of fintech while keeping risks under control.
- Thirdly, it will apply regulatory technology (RegTech) to judge and analyze the business data of fintech enterprises to cope with new risks brought by new technologies.
The purpose of the committee is enhance the research, planning and coordination of work on financial technology.
In the future, regulators will make use more technical means to improve their regulatory capacities. The emerging industry will develop more mature as regulations strengthen.