Defend the bottom line of financial security under open conditions

2024-02-07

In the current era where the world's century long changes are accelerating and the world economy is facing various risks and challenges, it is necessary to improve economic and financial management capabilities and risk prevention and control capabilities under open conditions, firmly hold the bottom line of preventing systemic financial risks, and build a strong financial safety net and firewall. One is to enhance the ability of financial services to serve the real economy and strengthen the financial stability guarantee system. To coordinate financial development and financial security, while continuously promoting high-level opening up of finance to the outside world and attracting the gathering of high-quality global financial resources and elements, we must adhere to the fundamental purpose of financial services for the real economy, optimize the structure of the financial system, improve the matching degree between financial structure and economic structure, further improve the functions of the capital market, guide social capital to flow into the real industry in an orderly manner, and promote the construction of a modern economic system, To provide guarantees for maintaining financial security. Prevent the disorderly expansion of capital, improve the financial support system for maintaining the stability and security of industrial and supply chains, build a "firewall" between industrial and financial capital, strengthen the prevention and control of financial risks at the source, identify, warn, expose, and dispose of risks early, firmly hold the bottom line of preventing systemic financial risks, and improve the operational resilience and risk resistance of financial institutions. The second is to enhance the synergy between macro prudential management and micro prudential supervision, and prevent risk transmission. Strengthen macroeconomic policy countercyclical and cross cyclical regulation, continuously enrich policy toolboxes, use tools such as countercyclical capital and dynamic provisions to smooth out the pro cyclical fluctuations of the financial system, mitigate systemic financial risks caused by pro cyclical fluctuations and cross market risk contagion, and timely adjust policy tools, policy combinations, and regulatory efforts. Further improve the integrated management framework of "macro prudential+micro regulatory" in the foreign exchange market, prevent external risk shocks from causing abnormal cross-border capital flows at the macro level, maintain policy and law enforcement standards across cycles of stability, consistency, and predictability at the micro level, and promote two-way balanced flow of cross-border funds. Strengthen the construction of financial infrastructure, leverage regulatory technology, strengthen digital supervision, legally include all types of financial activities in regulation, improve financial risk prevention, early warning and disposal mechanisms, and effectively prevent risk transmission resonance across regions, markets, and borders. The third is to deepen international financial regulatory cooperation and enhance the international status of the renminbi. Carry out information sharing and regulatory cooperation with overseas regulatory authorities, timely and effectively dispose of cross-border financial risks, and prevent cross-border transmission of risks. We will improve the regional monetary cooperation system, enhance the effectiveness of the multilateralization of the Chiang Mai Initiative, promote RMB liquidity arrangements, and establish a multilateral currency swap mechanism in the the Belt and Road countries, members of the Regional Comprehensive Economic Partnership Agreement, and East Asia. Dynamically monitor foreign exchange asset risks, prepare crisis response plans, and improve regional risk disposal arrangements. Steadily and solidly promoting the internationalization of the RMB, maintaining the basic stability of the RMB exchange rate at a reasonable and balanced level, and further expanding the RMB's cross-border trade

Edit:Luo yu    Responsible editor:Wang xiao jing

Source:ECONOMIC DAILY

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