The People's Bank of China Establishes Dedicated Agency for Fintech Company Oversight

Establishment of Financial Science and Technology Risk Control Center Within the Year
Collecting Opinions on Non-Bank Payment Institution Regulation Draft Until the 19th

[Asia Economy Beijing=Special Correspondent Jo Young-shin] The People's Bank of China, the central bank of China, is establishing a dedicated organization to manage the risks of fintech (financial technology) companies.

According to Xinhua News Agency on the 1st, the People's Bank of China recently held a meeting of the Financial Science and Technology Committee and decided to establish an organization called the "Financial Science and Technology Risk Control Center" within this year.

This organization is expected to oversee the overall activities of Chinese fintech companies such as Ant Group of Alibaba.

The People's Bank of China emphasized, "Rules and standards for financial technology supervision must be completed this year."

On the 20th of last month, the People's Bank of China released a draft of the "Non-bank Payment Institution Regulations" (draft for public consultation). This draft includes definitions of electronic payment service types, business scope, and regulations on monopolies.

According to this draft, if a single corporation's market share in the online payment market exceeds 50%, or if two corporations' combined market share exceeds two-thirds, they become subjects of antitrust investigations. If three corporations' combined market share exceeds three-fourths, they are also subject to investigation.

If deemed a monopoly, the People's Bank of China, together with the State Council, can investigate the corporation and may request the authorities to split the company. The draft regulations also limit clearing and settlement services to account opening and payment services.

The People's Bank of China plans to collect opinions on the draft regulations until the 19th.

This content was produced with the assistance of AI translation services.