The One Bank–Three Commissions Regulatory Structure
This chapter examines the One Bank–Three Commissions regulatory structure that supervises the broader financial system in China and the relationship between its parts. In 2003, China formally adopted a sector-based regulatory approach to its financial system, the so-called One Bank–Three Commissions structure, under which the People’s Bank of China and the China Banking Regulatory Commission regulate banking, while the CSRC regulates securities markets and trust assets management, and the China Insurance Regulatory Commission regulates insurance. The particular responsibilities and roles of these authorities and the nature of their interactions are scrutinized in this chapter. Additionally, the chapter considers the emergence of financial conglomerates which operate across all sectors, and the difficulty of regulating them under this model. The appropriateness of the One Bank–Three Commissions structure is also assessed in relation to asset-backed securitization and internet-based financial activities. The chapter assesses whether an effective coordinating mechanism is possible among the regulators.