Published on: 2026-08-25
Source: People’s Republic of China — Translation
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Beijing, August 25 /Xinhua/ — Chinese lawmakers on Tuesday began the second reading of the draft amendments to the law on banking supervision and regulation, aimed at better protecting the rights and interests of consumers.
The draft amendments were submitted for consideration at the current session of the Standing Committee of the National People’s Congress /NPC/, which opened on Tuesday.
In the draft law submitted for the second reading, the responsibilities of supervisory authorities for banking activities in protecting consumers of banking services are even more clearly defined, the corresponding mechanisms are improved, and special regulatory measures are introduced regarding offenses such as the illegal appropriation of client funds by employees of banking institutions.
The document proposes the creation and improvement of a system for protecting consumer rights in the banking sector, as well as a mechanism for handling consumer complaints and a mechanism for multilateral resolution of consumer disputes.
It also includes a list of actions that banking financial institutions and their employees are not allowed to take to the detriment of the legitimate rights and interests of consumers, such as coercing clients into purchasing bundled products or services.
Given the significant differences between banking financial institutions, the project provides that the banking supervisory authority conducts classified and differentiated supervision taking into account factors such as the type of institution, the scale of assets and liabilities, the level of risk, and systemic importance.
In order to provide more reliable legal support for measures to prevent and eliminate financial risks in the banking sector, the project clarifies the distribution of powers between central and local authorities in risk management, strengthens risk response measures, and defines the role of institutions such as deposit insurance fund management entities in risk resolution.
The current law on banking supervision and regulation came into effect in 2004. The draft amendments to it were first submitted for consideration to the NPC Standing Committee in December last year. -0-
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