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China’s new financial watchdog gets teeth to take on fintech risks
- The National Administration of Financial Regulation will have a department to oversee emerging industries
- The body is expected to play a bigger role in consumer rights in the aftermath of the Henan rural bank crisis
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Mandy Zuoin Shanghai
China has put risk control and regulation of emerging industries front and centre of responsibilities for its new financial regulator as fintech becomes a bigger player in the economy.
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Unveiling details on Friday, authorities said the National Administration of Financial Regulation (NAFR), the new body announced in March as part of a sweeping financial overhaul, would have a department dedicated to the tech industry.
The department’s main role will be to come up with development plans and risk supervision systems for information technology.
It will also have cybersecurity, data security, and critical information infrastructure oversight functions to promote the digital economy, according to a scheme released by the Central Institutional Organisation Commission.
Reflecting Beijing’s emphasis on financial stability, the new oversight body will also have greater responsibility for tackling illegal financial activities and protecting consumer rights.
The plan outlining the NAFR’s functions, structure and staffing, comes two weeks after the twice-a-decade Central Financial Work Conference in Beijing and eight months after the release of a major restructure of Communist Party and state institutions in March.
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