Banking and Securities Working Group Position Paper 2018/2019 - 银行与证券工作组建议书2018/2019 Go back »

  • Published on:
    2018-09-18
  • Category:
    Position Paper
  • by:
    Banking and Securities Working Group / Forum
  • Keywords:

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The banking industry and capital markets play a key role in helping the economy to allocate money efficiently. Banks operate payment systems, offer loans, take deposits, and help companies and private individuals with investments. However, in order for banks to function properly they need to be able to assess credit risk correctly and have access to a liquid and well-functioning interbank market, which is underpinned by the central bank’s policy rate. Banks are vital for a modern economy to function properly, but also for ordinary citizens to live a normal life, which is why the banking industry is so heavily regulated. Since banks cannot cover all the credit that is needed in an economy, debt capital markets, such as the bond market, also plays an important role. In Europe and China, more than two thirds of all credit in the economy is provided by banks, but in the United States (US) the bond market accounts for more than 80 per cent of all credit provided to corporates. Therefore, the importance of the banking market and debt capital markets differs significantly depending on the country they are based in, but both are needed in order to create an efficient and vibrant economy.

The Banking and Securities Working Group represents more than 50 banking and securities financial institutions in China. The working group engages with the China Banking Regulatory Commission (CBRC), which has been merged with the China Insurance Regulatory Commission (CIRC) into a new super-regulator called the China Banking and Insurance Regulatory Commission (CBIRC); the People’s Bank of China (PBOC); the State Administration of Foreign Exchange (SAFE); and the newly-established Financial Stability and Development Commission (FSDC).

The Banking and Securities Working Group aims to help improve the operating conditions for European banks and securities enterprises in China, the security of the Chinese financial system and the country’s continued economic development. The working group’s recommendations should be taken in the spirit of mutual cooperation.

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