China’s central bank calls for financial cautionary measures

The Chinese government needs to draft legislation of the Financial Stability Law and improve legal arrangements designed to prevent and dispose of financial risks, said three officials from the People’s Bank of China (PBOC) wrote in China Finance.

“Financial authorities should strengthen supervision of financial institutions’ date accuracy to prevent risks, and let the insurance deposit system play its full role,” the officials added in the article.

China should consolidate the capital reserves for dealing with financial risks to make sure that there are sufficient resources to dispose risks, the article mentioned.