In March 2023, the Central Committee and the State Council of China **** issued the Party and State Institutional Reform Program. It was decided to form the State Financial Supervision and Administration Bureau on the basis of the China Banking and Insurance Regulatory Commission. The China Banking and Insurance Regulatory Commission will no longer be retained.On May 18, the State Financial Supervision and Administration Bureau was inaugurated.
The State Financial Supervision and Administration Administration Bureau is responsible for implementing the guidelines, policies and decisions of the CPC Central Committee on financial work, and implementing the centralized and unified leadership of the CPC Central Committee on financial work in the process of performing its duties.
The main responsibilities are:
(1) To carry out unified supervision and management of the financial industry other than the securities industry in accordance with the law, to strengthen the supervision of institutions, behavioral supervision, functional supervision, penetrating supervision, and continuous supervision, and to safeguard the lawful and sound operation of the financial industry.
(2) To conduct systematic research on issues related to the reform and opening-up of the financial industry and the effectiveness of supervision, and to participate in the formulation of strategic planning for the reform and development of the financial industry. To formulate draft laws and regulations relating to the banking industry, the insurance industry and financial holding companies, and to make proposals for their enactment and modification. To formulate relevant regulatory systems for banking institutions, insurance institutions and financial holding companies.
(3) To coordinate the protection of the rights and interests of financial consumers. It formulates development plans for the protection of the rights and interests of financial consumers, establishes and improves the system for the protection of the rights and interests of financial consumers, researches major issues of the protection of the rights and interests of financial consumers, carries out financial consumer education, and builds a mechanism for the handling of complaints from financial consumers and a diversified mechanism for the settlement of financial consumer disputes.
(4) To regulate access to banking institutions, insurance institutions, and financial holding companies in accordance with the law, and to supervise their corporate governance, risk management, internal control, capital adequacy, solvency, business conduct, and information disclosure.
(5) To carry out on-site inspections and off-site supervision of banking institutions, insurance institutions and financial holding companies in accordance with the law, to conduct risk and compliance assessment, and to investigate and deal with violations of the law.
(6) Uniformly compiling supervisory data reports of banking institutions, insurance institutions and financial holding companies, releasing them in accordance with relevant state regulations, and carrying out duties related to comprehensive statistics of the financial industry.
(7) It is responsible for the scientific and technological supervision of banking institutions, insurance institutions, financial holding companies, etc. It establishes a scientific and technological supervision system, formulates policies on scientific and technological supervision, builds a platform for supervisory big data, carries out risk monitoring, analysis, evaluation, and early warning, and makes full use of scientific and technological means to strengthen supervision and prevent risks.
(viii) Implementing penetrating supervision of banking institutions, insurance institutions, financial holding companies, etc., formulating equity supervision system, reviewing and approving shareholders, de facto controllers and changes in equity in accordance with the law, carrying out investigations of shareholders, de facto controllers, as well as concerted parties and ultimate beneficiaries in accordance with the law, and adopting relevant measures or penalties for violations of laws and regulations.
(ix) Establishing a system of financial inspection in areas other than currency, payment, credit, anti-money laundering, foreign exchange and securities and futures, establishing a mechanism for the convergence of administrative law enforcement and criminal justice, and investigating, obtaining evidence, and dealing with the subjects involved in illegal financial activities in accordance with the law; and transferring to the judicial authorities those suspected of committing crimes.
(j) To establish a system for the recovery and disposal of banking institutions, insurance institutions, and financial holding companies, etc., and to study and make recommendations on the recovery and disposal of financial institutions in conjunction with the relevant departments and to organize the implementation of such recommendations.
(xi) taking the lead in combating illegal financial activities, organizing the establishment of a monitoring and early warning system for illegal financial activities, and organizing, coordinating, guiding and supervising the relevant departments and local governments to carry out the prevention and disposal of illegal financial activities in accordance with the law. With regard to illegal financial activities involving cross-sector and cross-region and new forms and products, it will study and put forward relevant work proposals and organize and implement them as required.
(xii) In accordance with the requirements for establishing a local financial supervision system based on the local dispatching agencies of the central financial administration, it guides and supervises the relevant operational work of local financial supervision, and guides and coordinates the local governments in fulfilling their territorial responsibilities for the disposal of relevant financial risks.
(xiii) It is responsible for the supervision of banking institutions, insurance institutions, financial holding companies and other intermediaries such as information technology outsourcing and other cooperative behaviors with information technology service agencies, and conducts investigations into violations of laws and regulations in accordance with the law, as well as taking relevant measures against financial institutions.
(xiv) Participating in international organizations related to the financial industry and international regulatory rule-making, and carrying out foreign exchanges and international cooperation.
(xv) To accomplish other tasks assigned by the Party Central Committee and the State Council.
In summary: the State Administration of Financial Supervision and Administration (SAFS) is an organization directly under the State Council formed on the basis of the China Banking and Insurance Regulatory Commission (CBIRC).
Legal basis:
Regulations on the Management of State-owned Financial Capital (Draft for Opinion)
Article 3
Ownership rightsState-owned financial capital belongs to the state, i.e., the whole people owns it. The State Council exercises ownership of state-owned financial capital on behalf of the State.
Article 4
Management requirementsThe State establishes a sound system for the management and supervision of state-owned financial capital that is compatible with the socialist market economy, and establishes a sound system for performance evaluation and accountability, so as to promote the preservation and appreciation of the value of state-owned financial capital.
Article 5
Management PrinciplesThe management of state-owned financial capital shall be guided by the principles of adherence to Party leadership, service to the overall situation, centralization and unification, clarity of authority and responsibility, and openness and transparency.
Article VI
Management ObjectivesThe objectives of state-owned financial capital management are to optimize the layout of state-owned financial capital, enhance the vitality, competitiveness, and risk-resistance of state-owned financial institutions, realize the preservation and appreciation of the value of state-owned financial capital, provide better service to the real economy, prevent and control financial risks, deepen financial reforms, safeguard the basic system of the state, and promote the development of the socialist market economy.