Industry News | Li Yunze, speaking out loudly, resolutely achieves "long teeth and thorns"

Recently, Li Yunze, Secretary of the Party Committee and Director of the State Administration for Financial Regulation, gave an exclusive interview to Xinhua News Agency reporters.

Li Yunze stated that the next step will be to adhere to a goal oriented and problem oriented approach, resolutely fight a tough and protracted battle, and focus on accelerating the reform and insurance transformation of small and medium-sized financial institutions. One is to adhere to stability, orderliness. Seize the current favorable opportunity, adhere to the principle of marketization and rule of law, and increase efforts to promote risk disposal. Seize the timing and efficiency, fully consider the affordability of institutions and markets, carry out work in a planned and step-by-step manner, and effectively prevent and dispose of risks. The second is to classify and implement precise policies. Fully leverage professional advantages, strengthen guidance and coordination, promote the development of risk disposal plans for "one province, one policy", "one industry, one policy", and "one company, one policy", and avoid a "one size fits all" approach. The third is to deepen the treatment of both symptoms and root causes. Promote the optimization of the structure, improvement of quality and efficiency of small and medium-sized banking institutions. Promote insurance companies to return to their roots, highlight their protection functions, and guide asset management, non banking and other institutions to adhere to their positioning and differentiated development.

Li Yunze stated that the next step will be to closely focus on strong regulation and strict supervision, resolutely achieve "long teeth with thorns", and continuously improve the foresight, accuracy, effectiveness, and synergy of regulation.

The following is the full interview:

Effectively Improving the Effectiveness of Financial Supervision and Properly Dealing with Various Financial Risk Challenges - Li Yunze, Secretary of the Party Committee and Director of the State Administration for Financial Supervision and Administration, in an Exclusive Interview with Xinhua News Agency

The Central Financial Work Conference held at the end of October put forward higher requirements for doing a good job in financial supervision in the new era. Next, how to implement the spirit of the Central Financial Work Conference? How to effectively improve the effectiveness of financial regulation? In response, Xinhua News Agency interviewed Li Yunze, Secretary of the Party Committee and Director of the State Administration for Financial Regulation.

Continuously improving regulatory effectiveness

Question: The Central Financial Work Conference requires "effectively improving the effectiveness of financial regulation". How can the State Administration for Financial Regulation further improve the quality and efficiency of regulation?

Answer: The Central Committee of the Communist Party of China requires the State Administration for Financial Regulation to be responsible for the supervision of the financial industry, except for the securities industry, and to strengthen institutional supervision, behavioral supervision, functional supervision, penetrating supervision, and continuous supervision. Since the establishment of the State Administration for Financial Regulation, the system has reformed its organizational structure, integrated and optimized resource allocation, explored and improved regulatory methods, and strived to lay a solid foundation for comprehensively improving regulatory quality and efficiency. Next, we will closely focus on strong regulation and strict supervision, resolutely achieve "long teeth with thorns", and continuously improve the foresight, accuracy, effectiveness, and synergy of regulation.

One is to comprehensively strengthen the "five major regulations". Adhere to the principle of putting risk first, focus on access, legal persons, governance, and strengthen institutional supervision. Adhere to the rule of law to regulate all types of financial activities, protect the legitimate rights and interests of financial consumers, and strengthen behavioral supervision. Adhere to the principle of "same business, same standard" and strengthen functional supervision. Adhere to the principle of "substance over form" and strengthen penetrating supervision. Adhere to focusing on the entire cycle of financial institutions, the entire process of financial risks, and the entire chain of financial business, and strengthen continuous supervision.

The second is to strictly enforce the law and dare to wield the sword. Deeply rectify the chaos in the financial market, adhere to principles, dare to confront challenges, treat everyone equally, and achieve fairness and justice. Focus on the "key issues" that affect financial stability, the "key individuals" that cause significant financial risks, and the "key behaviors" that disrupt market order, and truly hit the board right and painful. We will work with relevant departments to seriously deal with third-party intermediary agencies that violate laws and regulations. Strengthen the linkage between supervision and review, the connection between execution and punishment, and the integration of discipline and law, effectively increasing the cost of violating laws and regulations.

Thirdly, we will focus on strengthening regulatory safeguards. Further improve the financial rule of law, carry out the "reform, abolishment, and interpretation" of regulations and policies, keep pace with the times, improve prudential regulatory rules, and tighten the "iron fence" of the system. Accelerate the construction of regulatory big data platforms, fully utilize technological means, and quickly and effectively identify and accurately lock in financial risks. At the same time, we will also adhere to an inward approach, strengthen the supervision of supervision, and effectively achieve the goal of "strengthening our own strength".

Realize full coverage of financial regulation

Q: The Central Financial Work Conference emphasized the need to eliminate regulatory gaps and blind spots. How do you understand this? What is the next focus of work?

Answer: Achieving full coverage of financial regulation is an inevitable requirement for comprehensively strengthening financial regulation. Preliminary consideration suggests that the essence of full coverage includes three aspects: first, to manage legality more than illegality, always adhering to the principles of financial franchising and licensed operations. Secondly, industry management must manage risks and strictly prevent the alienation of general commercial activities into illegal financial activities, which may lead to financial risks. The third is for the State Administration of Financial Regulation to take the lead in establishing a bottom-up regulatory mechanism. This is an important institutional arrangement to achieve full coverage and an important task clearly deployed by the Party Central Committee. We have no shirking our responsibility and will resolutely shoulder the heavy burden with iron shoulders.

Next, under the overall leadership of the Central Financial Commission, the State Administration for Financial Regulation will collaborate to build a comprehensive financial regulatory system and mechanism, achieving shared responsibilities, answers, and efforts, ensuring that there are no blind spots, blind spots, and exceptions in regulation. Mainly including:

One is that the central financial regulatory authorities should divide their forces to guard their respective regulatory areas, not only to manage "licensed violations", but also to manage "unlicensed driving". The second is for the industry regulatory authorities to prevent and cooperate in the disposal of illegal financial activities in their respective fields within their scope of responsibilities. The third is that relevant functional departments strictly control registration, advertising and marketing, and resolutely prevent disorderly handling of finance. Fourthly, the State Administration for Financial Regulation will take the lead in establishing a regulatory responsibility attribution and bottom-up supervision mechanism to ensure that all financial activities, especially illegal financial activities, are watched, managed, and held accountable. Promote the clarification of regulatory responsibilities for financial activities across departments, regions, and new formats and products. It is indeed difficult to clarify responsibilities, and the State Administration of Financial Regulation is responsible for providing a cover

Effectively preventing and resolving financial risks

Q: The Central Financial Work Conference pointed out that "there are still many economic and financial risks and hidden dangers", and called for "timely disposal of risks in small and medium-sized financial institutions". How will the State Administration for Financial Regulation implement it?

Answer: Risk prevention and control is the eternal theme of financial work. For the current financial risks, we must not only face the difficulties, but also strengthen our confidence. Our country has unique political and institutional advantages, as well as strong economic resilience, great potential, and abundant vitality. The long-term positive fundamentals have not changed, which is the greatest confidence, guarantee, and support for us to prevent and resolve financial risks.

At present, the overall operation of China's financial industry is stable, and the overall risk resistance ability is strong. As of the end of the third quarter of this year, the non-performing loan ratio of commercial banks was 1.61%, the provision coverage rate was 207.89%, the capital adequacy ratio was 14.77%, and the comprehensive solvency adequacy ratio of the insurance industry was 194%. We have full confidence, conditions, and ability to increase vitality through reform, solve problems through development, and increase stock to properly address various financial risks and challenges.

Next, we will adhere to a goal oriented and problem oriented approach, resolutely fight tough and protracted battles, with a focus on accelerating the reform and insurance transformation of small and medium-sized financial institutions. One is to adhere to stability, orderliness. Seize the current favorable opportunity, adhere to the principle of marketization and rule of law, and increase efforts to promote risk disposal. Seize the timing and efficiency, fully consider the affordability of institutions and markets, carry out work in a planned and step-by-step manner, and effectively prevent and dispose of risks. The second is to classify and implement precise policies. Fully leverage professional advantages, strengthen guidance and coordination, promote the development of risk disposal plans for "one province, one policy", "one industry, one policy", and "one company, one policy", and avoid a "one size fits all" approach. The third is to deepen the treatment of both symptoms and root causes. Promote the optimization of the structure, improvement of quality and efficiency of small and medium-sized banking institutions. Promote insurance companies to return to their roots, highlight their protection functions, and guide asset management, non banking and other institutions to adhere to their positioning and differentiated development.

Be a staunch defender of the legitimate rights and interests of financial consumers

Q: The Central Financial Work Conference emphasizes the value orientation of "putting the people at the center". What are the key ideas and measures of the State Administration for Financial Regulation in doing a good job in consumer protection work?

Answer: Doing a good job in protecting the rights and interests of financial consumers is a concentrated reflection of practicing the political and people-oriented nature of financial work. This institutional reform clearly requires the State Administration of Financial Regulation to take overall responsibility for protecting the rights and interests of financial consumers. This is the trust and heavy trust of the Party Central Committee and the political mission that the State Administration of Financial Regulation must undertake. We will firmly establish the concept of "supervision for the people", always take safeguarding the fundamental interests of the broadest masses of the people as the starting point and foothold of regulatory work, wholeheartedly and passionately solve the urgent and difficult problems of the people, and be a firm defender of the legitimate rights and interests of financial consumers. Next, we will focus on four areas of work:

One is to accelerate the construction of a "large-scale consumer protection" work pattern. Efforts should be made to establish and improve a coordination mechanism for protecting the rights and interests of financial consumers and a diversified resolution mechanism for financial consumer disputes, to strengthen the main responsibility of financial institutions, and to promote the construction of a clear, efficient, and smooth consumer protection system with clear responsibilities.

The second is to grasp the key of appropriateness management. Improve suitability management methods and operating procedures, and urge financial institutions to strictly implement the "three appropriateness" requirements for financial products, sales channels, and target customers. Establish a sound financial product information disclosure system, promote financial institutions to conduct customer risk preference assessments, and severely crack down on false advertising and misleading sales.

The third is to ensure smooth channels and implement graded processing. Establish a complaint and reporting process and standard system for financial consumers, establish standards and screening methods for "effective complaints", improve the "transfer, acceptance, and handling" processing mechanism, and ensure that reasonable demands of the public are promptly responded to and properly resolved.

The fourth is to address both the root and root causes and resolve prominent contradictions. Systematically research solutions and strengthen source control around areas where complaints are relatively concentrated, such as insurance withdrawals, credit card complaints, car insurance claims, and early repayment of personal housing loans. At the same time, strengthen the promotion and education of financial consumers, and enhance the overall financial literacy of society.

The above content is sourced from Xinhua News Agency