The Financial Stability and Development Committee (FSDC, ) is a Chinese financial regulatory body under the

State Council State Council may refer to: Government * State Council of the Republic of Korea, the national cabinet of South Korea, headed by the President * State Council of the People's Republic of China, the national cabinet and chief administrative autho ...

History

In August 2013, China indicated that it would create a new government body to coordinate financial regulation. The announcement was made amidst a wide variety of regulatory reforms as government concern about the

corporate debt bubble The corporate debt bubble is the large increase in corporate bonds, excluding that of financial institutions, following the financial crisis of 2007–08. Global corporate debt rose from 84% of gross world product in 2009 to 92% in 2019, or about $ ...

grew in China.

Chinese Communist Party The Chinese Communist Party (CCP), officially the Communist Party of China (CPC), is the founding and sole ruling party of the People's Republic of China (PRC). Under the leadership of Mao Zedong, the CCP emerged victorious in the Chinese Ci ...

general secretary Secretary is a title often used in organizations to indicate a person having a certain amount of authority, power, or importance in the organization. Secretaries announce important events and communicate to the organization. The term is derive ...

Xi Jinping Xi Jinping ( ; ; ; born 15 June 1953) is a Chinese politician who has served as the general secretary of the Chinese Communist Party (CCP) and chairman of the Central Military Commission (CMC), and thus as the paramount leader of China, ...

at the July 2017 National Financial Work Conference gave a speech describing the Financial Stability and Development Committee, by name, stating that its purpose would be to “strengthen financial regulatory coordination and supplement regulatory shortcomings” and “strengthen the

People's Bank of China The People's Bank of China (officially PBC or informally PBOC; ) is the central bank of the People's Republic of China, responsible for carrying out monetary policy and regulation of financial institutions in mainland China, as determined by ...

’s macroprudential regulation and

systemic risk In finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to the risk associated with any one individual entity, group or component of a system, that can be contained therein without harming th ...

prevention role, strengthen the regulatory role of financial regulatory departments, and ensure the safe and stable development of the Chinese financial sector.” The Central Committee of the

Communist Party of China The Chinese Communist Party (CCP), officially the Communist Party of China (CPC), is the founding and sole ruling party of the People's Republic of China (PRC). Under the leadership of Mao Zedong, the CCP emerged victorious in the Chinese Civil ...

and the

approved its creation in November 2017. Vice Premier

Ma Kai Ma Kai (; pinyin: ''Mǎ Kǎi''; born June 1946 in Shanghai) was one of the four Vice Premiers of China (Fourth-ranked). He was formerly a State Councilor and Secretary General of the State Council of China. Biography Ma Kai was born in Jinsha ...

was appointed the inaugural chairman. After the inaugural meeting held in November 2017, Chinese state media identified the FSDC as a critical step to "safeguard financial security and prevent financial risk." The FSDC held its first meeting in November 2017. ''

The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...

'' opined that the Commission "seemed more a minnow than a whale" as it fell far short of proposals to combine the

(PBOC) with existing regulatory agencies to create a "super-regulator." In contrast, the FSDC was assigned a small physical office in the PBOC. ''The Times'' noted that Vice Premier Ma was a " lame duck," but expressed hope that the commission would be given more power in the future. It was not until July 2018 that the government announced the full membership of the FSDC, while also indicating that Party Politburo member and Vice Premier Liu He was succeeding Ma as Commission Chair. As part of the government response to the

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, the FSDC met repeatedly; while the commission announced its 14th meeting in early January 2020, it disclosed that it held its 25th meeting on 7 April. This reflected deep worry by national leadership about the economic downturn and a policy shift from managing risk from accumulated debt to expanding availability to credit to avoid bankruptcies and job losses.

Membership

The membership of the FSDC, , was: * Vice Premier Liu He: Chair * Governor of the PBOC Yi Gang: Vice Chair and Office Chair * Deputy-secretary general of the State Council Ding Xuedong: Vice Chair * Chair of the

China Banking and Insurance Regulatory Commission The China Banking and Insurance Regulatory Commission (CBIRC) is an agency of the People's Republic of China (PRC) authorised by the State Council to * Supervise the establishment and ongoing business activities of banking and insurance instituti ...

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* Chair of the

China Securities Regulatory Commission The China Securities Regulatory Commission (CSRC) is a government ministry of the State Council of the People's Republic of China The State Council, constitutionally synonymous with the Central People's Government since 1954 (particu ...

Liu Shiyu * Vice Chair of PBOC and head of the

State Administration of Foreign Exchange The State Administration of Foreign Exchange (SAFE) of the People's Republic of China is an administrative agency under the State Council tasked with drafting rules and regulations governing foreign exchange market activities, and managing the s ...

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* Vice Chair of the

Central Financial and Economic Affairs Commission The Central Financial and Economic Affairs Commission () is a commission of the Central Committee of the Chinese Communist Party in charge of leading and supervising economic work of both the CCP Central Committee and the State Council. The Commi ...

Han Wenxiu Han Wenxiu (; born September 1963) is a Chinese economist and politician, currently serving as executive deputy director of the . He is a representative of the 20th National Congress of the Chinese Communist Party and a member of the 20th Central ...

* Vice Chair of the

National Development and Reform Commission The National Development and Reform Commission of the People's Republic of China (NDRC), formerly State Planning Commission and State Development Planning Commission, is a macroeconomic management agency under the State Council, which has b ...

Lian Weiliang * Vice

Finance Minister A finance minister is an executive or cabinet position in charge of one or more of government finances, economic policy and financial regulation. A finance minister's portfolio has a large variety of names around the world, such as "treasury", ...

Liu Wei

References

{{reflist Financial regulatory authorities of China State Council of the People's Republic of China Great Recession