Authoritative Interview丨Effectively Improving the Effectiveness of Financial Supervision and Properly Responding to Various Financial Risks and Challenges -- Li Yunze, Secretary of the Party Committee and Director of the State Administration of Financial Supervision and Administration, was interviewed by Xinhua News Agency
Xinhua News Agency, Beijing, December 3 (Xinhua) -- Li Yunze, Secretary of the Party Committee and Director of the State Administration of Financial Supervision and Administration, was interviewed by Xinhua News Agency reporters
Xinhua News Agency reporter Li Yanxia
The Central Financial Work Conference held at the end of October put forward higher requirements for financial supervision in the new era. In the next step, how to implement the spirit of the Central Financial Work Conference? How to effectively improve the effectiveness of financial supervision? In this regard, Xinhua News Agency reporters interviewed Li Yunze, secretary of the party committee and director of the State Administration of Financial Supervision and Administration.
Continue to improve the effectiveness of supervision
Q: The Central Financial Work Conference called for "earnestly improving the effectiveness of financial supervision". How can the State Administration of Financial Supervision further improve the quality and efficiency of supervision?
Answer: The CPC Central Committee requires that the State Administration of Financial Supervision be responsible for the supervision of the financial industry except for the securities industry, and strengthen institutional supervision, behavior supervision, functional supervision, penetrating supervision, and continuous supervision. Since its establishment, the State Administration of Financial Supervision has systematically reformed its organizational structure, integrated and optimized the allocation of resources, explored and improved supervision methods, and strived to lay a good foundation for comprehensively improving the quality and efficiency of supervision. In the next step, we will focus on strong supervision and strict supervision, resolutely achieve "long teeth and thorns", and continue to improve the forward-looking, accurate, effective and collaborative nature of supervision.
The first is to comprehensively strengthen the "five major supervisions". Adhere to the risk-based principle, grasp access, legal persons, and governance, and strengthen institutional supervision. Persist in bringing all types of financial activities into supervision in accordance with the law, protect the lawful rights and interests of financial consumers, and strengthen behavioral supervision. Adhere to the principle of "one business, one standard" and strengthen functional supervision. Adhere to the principle of "substance over form" and strengthen penetrating supervision. Adhere to the whole cycle of financial institutions, the whole process of financial risks, and the whole chain of financial business, and strengthen continuous supervision.
The second is to strictly enforce the law and dare to show the sword. We should thoroughly rectify the chaos in the financial market, and ensure that we adhere to principles, dare to face tough problems, treat everyone equally, and be fair and just. Focus on the "key things" that affect financial stability, the "key people" that cause major financial risks, and the "key behaviors" that undermine the market order, and really hit the board accurately and painfully. In conjunction with relevant departments, we will strictly deal with third-party intermediaries that violate laws and regulations. Strengthen the linkage of supervision and examination, the connection of executions, and the integration of discipline and law, and effectively increase the cost of violations of laws and regulations.
The third is to focus on strengthening regulatory safeguards. We will further improve the rule of law in finance, do a good job in the "enactment, reform, abolition and interpretation" of laws and regulations, keep pace with the times, improve the rules of prudential supervision, and tighten the "iron fence" of the system. Accelerate the construction of regulatory big data platforms, and make full use of scientific and technological means to quickly and effectively identify and accurately identify financial risks. At the same time, we will also insist on turning the blade inward, strengthen the "supervision of supervision", and effectively achieve "striking iron and its own hardness".
Achieve full coverage of financial supervision
Q: The Central Financial Work Conference stressed the need to "eliminate regulatory gaps and blind spots". What do you think of this, and what are the priorities for the next step?
Answer: Achieving full coverage of financial supervision is an inevitable requirement for comprehensively strengthening financial supervision. Preliminary consideration, the essence of full coverage includes three aspects: first, the management of legal and illegal management, and always adhere to the principle of financial franchising and licensed operation. Second, the management industry must manage risks, and strictly prevent ordinary commercial behaviors from becoming alienated into illegal financial activities and deriving financial risks. Third, the State Administration of Financial Supervision has taken the lead in establishing a comprehensive supervision mechanism. This is an important institutional arrangement to achieve full coverage, and an important task clearly deployed by the Party Central Committee.
In the next step, under the overall leadership of the Central Financial Commission, the State Administration of Financial Supervision will work together to build a full-coverage financial regulatory system and mechanism, so as to share responsibilities, answer the same questions, and make efforts in the same direction, so as to ensure that there are no blind spots, no blind spots, and no exceptions in supervision. These include:
First, the central financial management departments have divided their forces into their respective regulatory areas, not only to manage "licensed violations", but also to manage "unlicensed driving". Second, the competent departments of the industry shall, within the scope of their duties, prevent and cooperate in the handling of illegal financial activities in their respective industries and fields. Third, the relevant functional departments strictly control the registration, advertising and marketing gates, and resolutely prevent the indiscriminate handling of finance. Fourth, the State Administration of Financial Supervision will take the lead in establishing a mechanism for attributing and claiming regulatory responsibilities and a thorough 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 such as cross-departmental, cross-regional, new business and new products. If it is indeed difficult to clarify the responsibility, the State Administration of Financial Supervision shall be responsible for the bottom line.
Effectively prevent and resolve financial risks
Q: The Central Financial Work Conference pointed out that "there are still many hidden economic and financial risks" and called for "timely handling of the risks of small and medium-sized financial institutions". How will the SAFS implement this?
A: Risk prevention and control is the eternal theme of financial work. With regard to the current financial risks, it is necessary not only to face up to the difficulties, but also to strengthen confidence. The mainland has unique political and institutional advantages, and at the same time, its economy is resilient, has great potential, is full of vitality, and its long-term positive fundamentals have not changed, which is the greatest confidence, the greatest guarantee and the greatest support for us to prevent and defuse financial risks.
At present, the mainland's financial industry is generally running smoothly and has a strong overall risk resistance. As of the end of the third quarter of this year, the non-performing loan ratio of commercial banks was 1.61 percent, the provision coverage ratio was 207.89 percent, the capital adequacy ratio was 14.77 percent, and the comprehensive solvency adequacy ratio of the insurance industry was 194 percent. We are fully confident that we have the conditions and ability to increase vitality through reform, solve problems through development, and increase inventory to properly respond to various financial risks and challenges.
In the next step, we will adhere to the goal-oriented and problem-oriented, and resolutely fight a tough and protracted battle, with a focus on accelerating the reform of small and medium-sized financial institutions. The first is to adhere to prudence and order. Seize the current favorable opportunity, adhere to the principle of marketization and rule of law, and increase efforts to promote risk disposal. Grasp the timeliness and efficiency, fully consider the capacity of institutions and the market, carry out work in a planned and step-by-step manner, and effectively prevent the risk of disposing of risks. The second is to classify and implement precise policies. Give full play to professional advantages, strengthen guidance and coordination, and promote the formulation of risk disposal plans for "one province, one policy", "one line, one policy" and "one department, one policy", so as to avoid "one size fits all". The third is to deepen the treatment of both the symptoms and the root causes. Promote small and medium-sized banking institutions to optimize their structure, improve quality and efficiency. Promote insurance companies to return to their origins, highlight their protection functions, and guide asset management, non-bank 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 stressed the need to "adhere to the people-centered value orientation". What are the key ideas and measures of the State Administration of Financial Supervision in terms of consumer protection?
Answer: Doing a good job in protecting the rights and interests of financial consumers is a concentrated embodiment of the political and people's nature of financial work. This institutional reform clearly requires that the State Administration of Financial Supervision be responsible for the protection of the rights and interests of financial consumers as a whole, which is the trust and trust of the Party Central Committee and the political mission that the State Administration of Financial Supervision 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 end point of regulatory work, solve the problems of the masses with heart and soul, and be a firm defender of the legitimate rights and interests of financial consumers. In the next step, we will focus on four aspects:
The first is to speed up the construction of a "big consumer protection" work pattern. We should pay close attention to establishing and improving the coordination mechanism for the protection of the rights and interests of financial consumers and the diversified resolution mechanism for financial consumer disputes, consolidate the main responsibilities of financial institutions, and promote the construction of a clear, efficient and smooth consumer protection work system.
The second is to grasp the key of appropriateness management. Improve suitability management measures and operating procedures, and urge financial institutions to strictly implement the "three appropriate" requirements for financial products, sales channels, and target customers. Improve the information disclosure system for financial products, promote financial institutions to do a good job in assessing customer risk appetite, and severely crack down on false publicity and misleading sales.
The third is to smooth channels and implement hierarchical handling. Establish a system of financial consumer complaints and reporting procedures and standards, formulate standards and screening methods for identifying "valid complaints", and improve the handling mechanism of "transferring, receiving, and handling" to ensure that the public's reasonable demands are responded to in a timely manner and properly resolved.
Fourth, it is necessary to treat both the symptoms and the root causes and resolve outstanding contradictions. Focusing on areas where complaints such as insurance surrender, credit card complaints, auto insurance claims, and early repayment of personal housing loans are relatively concentrated, we will systematically study solutions and strengthen governance at the source. At the same time, we will strengthen the publicity and education of financial consumers and improve the financial literacy of the whole society.