China is planning to ramp up the oversight of its financial system by setting up a new consolidated regulatory body, reported Bloomberg

The People’s Bank of China (Pboc), the China Banking and Insurance Regulatory Commission (CBIRC), and the China Securities Regulatory Commission (CSRC) are currently in charge of overseeing China’s financial sector.

The overall control rests with the cabinet’s Financial Stability and Development Committee.

According to the proposed plan submitted to the parliament, the banking and insurance regulator will be absorbed by the new financial services watchdog. 

It will also take over duties such as oversight of financial holding corporations, from the central bank or the PBOC.

As per the report, the regulatory reform is anticipated to strengthen the government’s control over the industry.

Under the plan, following the revision, the CBIRC will be dissolved, and the CSRC will become a government organisation operating directly under the State Council.

The steps are aimed at “solving the long-standing conflicts and issues in the financial area,” according to the plan.

The new agency’s main goals, as per the statement, will be to increase oversight of financial institutions and take tougher action against infractions.

Speaking to the publication, Pingtan Strategic Asset Management fund manager You Lanqiang said: “The purpose of the new regulatory body is to make sure that it encompasses some of the blind spots in regulating illicit practices in finance, and under one umbrella to make sure that there is no room for shrugging off responsibilities.”