New mechanism to strengthen financial supervision

China has decided to set up an inter-ministerial meeting mechanism, headed by the central bank, to beef up financial supervision, according to a report on the government website, www.gov.cn, on Tuesday.

China's State Council has approved the mechanism that draws regulatory bodies from the banking, securities, insurance and foreign exchange sectors.

Their meetings will also invite representatives from the National Development and Reform Commission, the Ministry of Finance and other government bodies when necessary, according to the report.

The mechanism will coordinate the country's monetary and financial regulatory policies. It aims to safeguard financial stability and address regional systemic financial risks.

The mechanism will also promote financial information sharing and help build the industry's comprehensive statistical systems, said the report.

The mechanism will not change the current financial supervision system. It will not weaken the responsibilities of relevant government bodies either, said the report.