China should strengthen cooperation with other economies in the field of financial regulation and policy coordination to better prevent financial risks, enhance resilience and improve the stability of the global financial system, an expert said.
Sam Woods, deputy governor for prudential supervision at the Bank of England, the Bank of England, said cooperation between regulators is key to ensuring financial stability.
On Monday, at an event at Peking University's National School of Development, Woods shared important lessons learned from the 2008 financial crisis, emphasizing the importance of "close and regular cooperation between regulators."
He said international regulators, including Chinese regulators, have been working closely to reform international standards, particularly on the issue of capital adequacy frameworks, to ensure that banks hold sufficient capital.
"This led to the so-called Basel III, which has been implemented globally," he said. "But the work never ends. We are currently working with our colleagues in China and elsewhere in the world to implement one of the goals of the framework. ”
Faced with a major test from last year's collapse of Silicon Valley Bank, a number of other U.S. banks and Credit Suisse, he said global regulators needed to "learn from the lessons and consider what changes should be made."
Against this backdrop, I look forward to continuing to work closely with my Chinese counterparts," he said. "Together, we can shape a financial landscape that is resilient, sustainable, and conducive to global economic stability. ”
Woods said China is an important regulatory partner for the UK because two of the UK's largest banks have significant operations in China.
Looking ahead, he said that there is great potential for financial cooperation between China and the UK.
"By supporting reciprocal market access for the banking sectors of both countries, China will continue to have the opportunity to diversify and strengthen its banking sector, which will improve market efficiency and financial innovation," he said. "The close links between the UK and Chinese capital markets, as well as a higher standard of transparency, will improve the efficiency and liquidity of China's capital markets at a time when private investment is in very high demand." ”
Woods also said the two countries can work together to achieve a "green" financial system, including by adopting accepted green finance standards.
With the UK's expertise in financial services and China's vast market and innovation capabilities, he believes that UK-China cooperation can support the development of the financial system so that it is not only strong but also resilient to future challenges.
Zhou Yanli, former vice chairman of the China Insurance Regulatory Commission, said that China has made considerable progress in global financial regulatory cooperation, and China's ongoing institutional financial opening will promote the high-quality development of the industry. He made the remarks at an economic forum held on Friday at the Chongyang Institute for Financial Studies at the Chinese University of China.
As of mid-January, China had signed 126 memorandums of understanding or cooperation agreements with financial regulators in 87 countries and regions, according to the State Financial Supervision Administration.
In order to promote international cooperation, the International Cooperation Department of the State Railway Preparation Administration said that it will further improve the bilateral regulatory consultation mechanism on a regular or irregular basis, maintain the smooth channels of daily regulatory communication, strengthen cross-border regulatory coordination of specific events and matters, realize the comprehensive supervision of cross-border financial institutions, and resolve cross-border risks.
The International Cooperation Department of the National Railway Authority said in a statement earlier this month that further efforts will be made to deepen cooperation under the framework of the memorandum of understanding between banking and insurance regulators, including strengthening international cooperation in technology finance, green finance, inclusive finance, pension finance and digital finance.