China State Council to establish State Financial Regulatory Administration; dismantle CBIRC

Written by Adam Cadle

09/03/2023

China’s State Council has submitted an institutional reform plan to lawmakers which includes establishing the State Financial Regulatory Administration, and will thus result in the CBIRC being dismantled.

The proposed Administration will be in charge of regulating the financial industry except for the securities sector and will be built on the CBIRC. In addition, certain functions of the People’s Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC) will be transferred to the new administration.

The implementation of the institutional reform plan will mark the biggest overhaul to China’s financial regulatory system since March 2018, when the “one committee, one bank, and two commissions” system (PBOC, CBIRC, and CSRC) replaced the “one bank, three commissions” system (PBOC, CIRC, CBRC, and CSRC) that had been in place since 2003.

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