A UK banking official praises China’s cooperation on a number of lending regulations

According to an expert, China should step up cooperation with other economies in the areas of financial regulation and policy coordination in an effort to strengthen resilience, increase stability, and better protect against financial risks in the global financial system. According to Sam Woods, deputy governor for prudential regulation at the Bank of England, the UK’s central bank, collaboration among regulators is essential to maintaining financial stability. Woods discussed the significance of “close and regular cooperation between regulators” while outlining important takeaways from the 2008 financial crisis during a Monday event at Peking University’s National School of Development.

According to him, international regulators—including Chinese regulators—have collaborated closely to change global norms, especially in relation to concerns with the capital adequacy framework and ensuring lenders have enough capital. This led to the creation of the Basel III pact, which is now in effect worldwide,” he stated. However, the effort never ends. We are now meeting with colleagues in China and other countries to implement an object under that framework. He stated that international authorities must “learn the lessons and consider what changes should be made” in light of the significant test that was presented by the failure of Silicon Valley Bank, many other US lenders, and Credit Suisse last year.

Woods went on to say that the two nations can coordinate their efforts to “green” the financial system, such as by adopting accepted guidelines for green finance. He thinks collaboration between the UK and China can aid in the development of a financial system that is resilient and flexible enough to meet new problems, given the UK’s experience in the financial services industry and China’s enormous market and innovative spirit. China has made significant strides in international financial regulatory cooperation, according to Zhou Yanli, a former vice-chairman of the China Insurance Regulatory Commission. The nation’s continued institutional financial opening-up would promote high-quality development in the industry. He said this at the Chongyang Institute for Financial Studies, a research center at Renmin University of China, during an economic symposium on Friday.