On May 26, 2021, the Office of the Financial Stability and Development Committee (FSDC Office) convened a meeting in Nanjing, where attendees from some provinces (autonomous regions or municipalities) shared their work experience on the conduct of the Local Coordination Mechanism and discussions were held over the key tasks of the Mechanism in the next stage. Liu Guoqiang, deputy governor of the People’s Bank of China and deputy director of the FSDC Office, attended and addressed the meeting.
The attendees gave reports on the progress of their work in strengthening central-local financial regulatory coordination, serving the real economy, forestalling and defusing financial risks, deepening financial reform, etc. They also briefed the meeting on new developments of local economic and financial situations, and analyzed the impact of rising commodity prices on the production and operation of local businesses. They suggested that more work should be done to improve the top-level design of laws and regulations, promote effective sharing of information, enhance local financial regulatory capabilities, reinforce the implementation of financial policies, and further bring into play the role of the Local Coordination Mechanism.
Liu Guoqiang said that the Local Coordination Mechanism under the FSDC Office is an important institutional arrangement to strengthen central-local financial regulatory coordination. In January 2020, with the approval of the State Council, it was established successively in all provinces, autonomous regions and municipalities. Since then, through enhanced cooperation with provincial-level financial coordination mechanisms, the FSDC Office Local Coordination Mechanism has promoted synergy among fiscal, financial and industrial policies locally, facilitated information sharing, strengthened coordination based on the division of duties, and pushed for the targeted implementation of financial support policies, providing strong support for pandemic control as well as economic and social development.
Going forward, Liu Guoqiang stressed, in line with the arrangements of the Communist Party of China Central Committee and the State Council as well as the requirements of the FSDC, the Local Coordination Mechanism should make continued explorations to improve its operation. It should attach importance to analyzing and assessing the risks and challenges facing economic and financial work. Moreover, it should vigorously improve regional economic and financial ecology, hold all the concerned parties truly accountable, enhance joint efforts in financial regulation, and forestall and diffuse local financial risks in a proactive and prudent manner, thereby supporting local financial reform, development and stability to achieve new progress.
