Draft Financial Stability Law for Comments: Establishment of Financial Stability Guarantee Fund_Securities Times Network

Securities Times Network News, the People’s Bank of China issued the “Financial Stability Law of the People’s Republic of China (Draft for Comment)”, the main contents include: the establishment of a financial stability guarantee fund. In order to improve my country’s financial safety net and enhance my country’s ability to deal with major financial risks, the “Financial Stability Law” clearly establishes a financial stability guarantee fund as a reserve fund for the country’s disposal of major financial risks. Drawing on common international practices, the fund consists of funds raised from financial institutions, financial infrastructure and other entities, as well as other funds specified by the State Council. When necessary, public funds such as re-loans from the People’s Bank of China can provide liquidity support for the fund, and the fund shall repay the re-loans with disposal proceeds, proceeds and industry charges. At the same time, it is clear that the State Council stipulates the specific methods for the raising, management and use of the financial stability guarantee fund, leaving institutional space for further exerting the role of the financial stability guarantee fund in the future. The Financial Stability Guarantee Fund and the existing deposit insurance fund and industry guarantee fund operate in two layers and cooperate with each other to further strengthen my country’s financial safety net.