Who is in charge of financial institutions? - Huxiu.com#
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Who is in charge of financial institutions?#
On November 10, 2023, the "Three Determinations" plan of the National Financial Regulatory Authority was announced.
The so-called "Three Determinations" here include determining functions, determining institutions, and determining staffing.
This plan is about the responsibility structure of the National Financial Regulatory Authority.
The National Financial Regulatory Authority has established 7 new departments with a total of 910 administrative staff, responsible for the supervision of the financial industry except for the securities industry.
So let's simplify it.
First, let's ask a question: Do you know what the current financial regulatory framework in our country is like?
Simply put, it is "one bank, one commission, one authority", and they are all at the ministerial level in our administrative hierarchy.
But to make a long story short, let's go back to 2003 and tell a story about a Tang monk and his four disciples.
The four disciples of the Tang monk represent the central bank, the banking regulatory commission, the insurance regulatory commission, and the securities regulatory commission.
Among them, the central bank is responsible for formulating and implementing monetary policies, while the other three disciples regulate different financial industries. At that time, we called this financial regulatory framework "one bank, three commissions".
Everyone has their own responsibilities, and this division of regulatory responsibilities has been in operation for 15 years.
However, there are also problems with regulatory arbitrage in the division of regulatory responsibilities. Due to unclear responsibilities, there have been some irregularities in the banking and insurance industries.
Faced with this situation, how can we better prevent financial risks?
In 2018, the banking regulatory commission and the insurance regulatory commission merged and unified as the "China Banking and Insurance Regulatory Commission", abbreviated as "CBIRC".
At this time, the financial regulatory framework became "one bank, two commissions".
Banks and insurance companies are more inclined towards indirect financing, while the securities industry belongs to direct financing and has more independent business. This is where "division of labor" regulation is more advantageous.
But things have changed again.
On March 7, 2023, the State Council's institutional reform plan was released!
The "National Financial Supervision and Administration Authority" took the stage and the banking and insurance regulatory commission was abolished!
The National Financial Supervision and Administration Authority was established on the basis of the banking and insurance regulatory commission, and the daily supervision responsibilities of financial holding companies and other financial groups, financial consumer protection responsibilities of the central bank, and investor protection responsibilities of the securities regulatory commission were also included in the scope of supervision by the regulatory authority.
The National Financial Regulatory Authority is responsible for the supervision of the financial industry except for the securities industry.
So far, the financial regulatory framework has been upgraded again!
And with the release of the "Three Determinations" plan of the National Financial Regulatory Authority, 27 departments at the bureau level have been established.
Let's take a look at which department or bureau different financial institutions belong to in the latest departmental setting of the National Financial Regulatory Authority.
In fact, "department" and "bureau" are both business departments of ministries and have the same level.
Of course, there are also differences between the two.
- Internal management
The "department" is generally only responsible for relevant business work, and personnel and financial matters are managed uniformly by the ministry; while the "bureau" can be an independent entity and can establish relevant departments such as personnel and finance departments.
- Authority to issue documents
The "department" cannot make official seals or issue formal documents to the outside world. If it needs to issue documents, it can only do so in the name of the ministry or the ministry's office; while the "bureau" has its own official seal and can directly issue documents to relevant departments of provinces, autonomous regions, and municipalities.
- Law enforcement authority
If a ministry wants to establish a law enforcement agency and have administrative law enforcement authority, it can only be a "bureau", not a "department".
In short, although "department" and "bureau" are both internal institutions of ministries, the biggest difference lies in whether they have independent legal personality.
In any case, the release of the "Three Determinations" plan of the National Financial Regulatory Authority highlights the direction of strong and strict supervision. The National Financial Regulatory Authority will uniformly supervise and manage the financial industry except for the securities industry in accordance with the law, and maintain the legal and stable operation of the financial industry.
As usual, here is a bonus time:
Don't talk nonsense. Microfinance companies, financing guarantee companies, pawnshops, financial leasing companies, commercial factoring companies, local asset management companies, and other local financial organizations are all "licensed" institutions. They are only responsible for formulating relevant regulatory systems by the Bureau for Combating Illegal Financial Activities and guiding and supervising the relevant business work of local financial regulatory departments.
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