Three officials from the People’s Bank of China (PBOC) wrote in China Finance, a journal associated with the central bank, that China should speed up the passage of the Financial Stability Law and better other legislative frameworks intended to avoid and address financial risks.
According to the piece, financial officials should increase their oversight of financial institutions’ data precision in order to reduce risks. It also stated whether any lessons should be learned from the Silican Valley Bank disaster.
According to the writers, who work for the Deposit Insurance Corp. and the Financial Stability Bureau of the PBOC, China should also enable the insurance deposit system to perform to its maximum potential, enabling the mechanism to deal with troublesome banks in a prompt and organized way, in order to successfully avoid systemic risks.
According to the report, China’s business banks are generally strong and secure.
According to the writers, China should combine its cash assets for managing financial risks in order to guarantee that there are enough funds available to quickly address risks.