Banking on reform to secure economic growth

JIN DING/CHINA DAILY Reform and opening-up have been the driving force for China's rapid development. The resolution issued by the third plenum has outlined five key areas for financial system reform: improving the central bank system, fine-tuning the role of governance in financial institutions, enhancing capital market functions, strengthening the financial regulatory system, and promoting high-standard financial opening-up. Improving the central bank system involves creating a dual-pillar framework that includes both monetary policy and macro-prudential regulation, in order to build a stable and flexible financial environment conducive to promoting economic growth. The resolution also emphasizes the importance of guiding financial institutions to foster a healthy corporate culture and boosting their intrinsic motivation to serve the real economy, and optimizing the management system of State-owned financial capital by adhering to and strengthening the Party's leadership while promoting market-oriented reform to make State-owned financial institutions more efficient and competitive. The third plenum's resolution also calls for improving financial market connectivity, optimizing the qualified foreign investor system, urgently building an autonomous and controllable cross-border payment system, strengthening financial security mechanisms under open conditions, expanding the scope of the renminbi cross-border payment system, and establishing a unified full-scale foreign debt supervision system to maintain a reasonable, optimized, and controllable risk structure for foreign debt.