BEIJING, April 2 (Reuters) - China should accelerate
legislation of the Financial Stability Law and improve other
legal arrangements designed to prevent and dispose of financial
risks, three officials from the People's Bank of China (PBOC)
wrote in China Finance, a publication affiliated to the central
bank.
Financial authorities should strengthen supervision of
financial institutions' date accuracy to prevent risks, the
article said, saying if any enlightment should be drawn from the
Silican Valley Bank crisis.
China should also let the insurance deposit system play its
full role, allowing the mechanism to deal with problematic banks
in a swift and orderly manner, so as to effectively prevent
systematic risks, said the authors, who are from PBOC's
Financial Stability Bureau and the Deposit Insurance Corp.
China's commercial banks as a whole are sound and stable,
the article said.
The authors said China should consolidate the capital
reserves for dealing with financial risks to ensure that there
are sufficient resources to dispose risks in a timely manner.
(Reporting by Sophie Yu, Brenda Goh
Editing by Raissa Kasolowsky)
