Risk Strategy: China Rolls Dice With New Superregulator

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China’s overhaul of its financial and business regulators will give the country’s leadership more punch in its top-priority battle to fend off deep-seated risks in the banking system and overall economy, The Wall Street Journal reported. Under a plan reviewed by China’s legislature on Tuesday, the separate agencies that oversee the country’s banks and insurance companies will be combined into a new commission to “ensure the nation’s financial safety.” The central bank will then set overall rules for the banking and insurance industries, leaving supervision of individual firms to the combined commission. The restructuring is aimed at streamlining purview over financial firms and capital markets that at times has been fragmented and has failed to get a handle on risks from rising debt and new financial products, according to officials involved in policy-making. A broader reorganization effort will place the newly combined banking-insurance regulator, the top securities watchdog and the central bank under a cabinet-level committee formed last year, according to these officials. Read more. (Subscription required.)