EconomicWatch:Chinaboostsreformsoflocalfinancialregulatorysystem_GuangmingOnlineBEIJING,Feb.27(Xinhua)--WithreformsofChina'sfinancialregulatorysystembasicallycompletedatthecentrallevel,thecountryisnowadvancingsuchreformsatthelocallevel.Atthecentrallevel,theCentralFinancialCommissionwasunveiledlastyeartoensuretop-leveldesign,overallplanning,bettercoordination,holisticdevelopmentandsolidimplementationofworkplansrelatedtofinancialstabilityanddevelopment.TheCentralFinancialWorkCommissionwasalsosetup.TheNationalAdministrationofFinancialRegulationwasofficiallysetuplastyearasChina'snewfinancialregulator.Sincethecentral-levelmovesweremade,localagencieshaveemergedoneafteranother.Sofar,morethan20provincial-levelregionshavesetuplocalagenciesofthecentralfinancialregulatoryauthorities.AccordingtoDongXimiao,aresearcherattheInstituteforFinancialStudies,FudanUniversity,theestablishmentofthelocalfinancialregulatorybrancheswillstrengthentheleadershipoftheCommunistPartyofChinaonfinancialworkatthelocallevel.Thecentralandlocalfinancialsupervisionwillbemorecloselylinked,whichisconducivetostrengtheningthecoordinationbetweenthecentralandlocalauthoritiesandimprovingtheefficiencyoflocalfinancialsupervision,saidDong.Inthenewroundoffinancialregulatoryreforms,itisbecomingincreasinglyimperativetodeepenreformsofthelocalfinancialregulatorysystemandstrengthenthecoordinationofcentralandlocalsupervision.Localregionsplayanimportantroleinpreventingandresolvingfinancialrisks.However,forhistoricalreasons,localfinancialregulatorybodiesarerelativelyweak,andtherearecontradictionsindealingwiththerelationshipbetweenfinancialdevelopmentandbettersupervision.Adjustinganddivestingthefunctionsoflocalfinancialregulatoryauthoritiesinfinancialdevelopmentandattractinginvestmentinflowscanpreventthemfrombeingboth"judges"and"athletes,"thusenablingthemtofocussolelyonregulationandriskprevention,Dongsaid.Thenecessityofcentralandlocalcollaborationisreflectedintwoaspects,namelydailysupervisionandriskresolution,saidZengGang,deputydirectoroftheNationalInstitutionforFinanceandDevelopment.Theinconsistencyofcentralandlocalregulatoryrulesmayleadtoregulatoryarbitrage,hesaid,addingthatonlywhenthecentralandlocalauthoritiesfurtherworktogethercanactionsbeunifiedandpoliciesbeconsistent,withfullcoverageoffinancialsupervisionachieved.Thetaskofriskpreventionremainsarduousamidcomplexfinancialinnovation.Itisimperativetoboostthecoordinationofcentralandlocalsupervision,aswellasworktoupgradetheefficiencyoflocalfinancialsupervision.Chinahassentstrongsignalsonbuildingitselfintoafinancialpowerhouseaspartofitseffortstopursuethehigh-qualitydevelopmentofthefinancialsector.ThecentralfinancialworkconferenceheldinOctobercalledforacceleratingthebuildingofanationwithastrongfinancialsector,whichelevatestheimportanceoffinancialworktoahigherstrategiclevel.China'sfinancialinstitutionshaveseenincreasedstrengthandinfluence,withmorethan4,000bankinginstitutionsintotalandfivelendersassessedasglobalsystemicallyimportantbanks.Yettheirdevelopmentremainsunevenandtheircompetitivenessneedstobestrengthened.■Editor:DisclaimerTheviewsandopinionsexpressedinthisarticlearethoseoftheauthor's,GMW.cnmakesnorepresentationsastoaccuracy,suitability,orvalidityofanyinformationonthissiteandwillnotbeliableforanyerrors,omissions,ordelaysinthisinformation.