However, a sound legal framework may help deter imprudent risk-taking activities of financial institutions and reduce systemic risks. Furthermore, a favorable legal environment is the precondition for the steady performance of the financial system. The PBC is stepping up its efforts in improving the legal framework for the financial sector.
More specifically, it is facilitating the formulation of the Regulations on Credit Information Management; it is actively involved in the amendment of the Enterprise Insolvency Law and the Criminal Law; it is offering suggestions for the amendment of the Securities Law of the People’s Republic of China; it is drafting the Law on Anti-Money Laundering; and it is doing research on the legal issues concerning the market exit of financial institutions, deposit insurance, legislation for financial holding companies, asset securitization, and entrusted wealth management.