Deputy of the National People's Congress Fu Xiguo: Suggest that the "Financial Stability Law" emphasize systemic financial risk prevention and control, and clarify responsibilities and division of duties

WealthCoffee · 2026-03-11T05:07:41+00:00

The legislation of the Law of the People's Republic of China on Financial Stability is underway to enhance financial risk prevention and maintain financial stability. National People's Congress delegate Fu Xiguo recommends accelerating the enactment of this law and points out the need to establish a complete legal system by integrating it with existing laws to address current issues of consistency and coherence in legislation.

WealthCoffee

2026-03-11 05:07:41

Abstract generation in progress

Caixin: Preventing and resolving financial risks and maintaining financial stability require a solid legal foundation. As the fundamental and comprehensive law for maintaining financial stability, the “Financial Stability Law of the People’s Republic of China” (hereinafter referred to as the “Financial Stability Law”) is currently being drafted.

During the 2026 “Two Sessions,” NPC deputy and former Party Secretary and President of the Liaoning Branch of the People’s Bank of China, Fu Xiguo, submitted a proposal recommending the accelerated enactment of the Financial Stability Law.

He stated that the systemic, complex, and spillover characteristics of financial risks make it difficult for industry legislation to fully cover the entire chain of risk monitoring and management. The proposed Financial Stability Law, as a specialized law to safeguard financial stability, should form a complementary, procedural, and rule-coordinated legal system with the ongoing revisions of the “People’s Bank of China Law,” the “Banking Supervision Law,” the “Enterprise Bankruptcy Law,” and the proposed revision of the “Commercial Banking Law.” However, current legislative practices still face issues such as inconsistent concept definitions and uncoordinated legal provisions.

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