PBC Outlines Work Priorities for 2020 in a Conference Held in Beijing

With respect to the work in 2020, the meeting stressed on the following key points:

• To prevent and resolve major financial risks. PBC will establish and improve the recovery and resolution mechanism, loss-sharing mechanism, and incentive and restraint mechanism of financial institutions. It will continue to carry out special rectification of Internet financial risks and establish a long-term supervision mechanism. 
• Focus on alleviating the difficulty of financing for small and micro enterprises. PBC will improve the incentive mechanism for loan appraisal of small and micro enterprises and implement the credit due diligence and exemption system.
• To accelerate the improvement of the macro-prudential management framework. Macro-prudential stress test system will be prepared. PBC will speed up the establishment and improvement of a macro-prudential management mechanism for cross-border capital flows that integrate local and foreign currencies. It will also gradually expand the scope of macro-prudential policies, organize the implementation of systemically important bank assessments, and promote the implementation of supervision and management measures for financial holding companies.
• To deepen financial reform of financial markets and financial institutions. PBC will actively develop the bond market and strengthen the overall supervision of financial infrastructure. It will work to deepen the reform of small and medium banks and rural credit cooperatives, in addition to further improving the governance structure of policy banks.
• To strengthen research and development and application of financial technology. PBC will implement the development plan for fintech and strengthen rules for fintech supervision. IT will continue to steadily advance the development of digital currencies and further expand the application field of Global Legal Person Identification Code (LEI) in China.
• To comprehensively improve the level of financial services and financial management. PBC plans to deepen the pilot projects of regional financial reforms such as science and technology finance, green finance, inclusive finance, financial innovation, and regional coordinated development. It also plans to promote the modernization of central bank financial governance and further strengthen the anti-money laundering supervision.

Keywords: Asia Pacific, China, Banking, Securities, Macro-prudential Policy, Stress Testing, SME, Fintech, LEI, Resolution Framework, PBC