PBoC handed leading role in macro-prudential policy

The People’s Bank of China has gained a macro-prudential policy department, as the Chinese Communist Party signals the central bank’s “leading” role in financial stability.

A document published on February 2 by the State Commission Office of Public Sector Reform says the central bank will establish a new department to lead the creation of a macro-prudential policy framework. The department will maintain supervisory mechanisms for overseeing systemically important financial institutions.

The