China’s financial regulators are moving to revise the nation’s core Commercial Banking Law, placing enhanced consumer protection, data privacy and mandatory risk disclosures at the center of the legislative framework.
Chinese lawmakers began the second reading of a draft revision to the banking supervision and regulation law on Tuesday aimed at strengthening consumer protection and rights.
The draft revision was submitted for deliberation at the ongoing session of the Standing Committee of the National People’s Congress (NPC)China’s top legislature which opened Tuesday.
The second-reading draft strengthens banking regulators’ responsibilities regarding consumer protection, improves relevant oversight mechanisms and establishes specific rules to curb illegal practices including the misappropriation of customer funds by bank staff.
It proposes establishing and enhancing systems to safeguard banking customers’ rights along with multi-channel mechanisms to resolve complaints and disputes.
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It also outlines prohibited practices by banking institutions and their staff that infringe on consumer rights such as tying sales or forcing customers to buy bundled products and services.
To improve the legal framework for resolving financial risks in the banking sector, the draft clarifies risk-handling duties between central and local authorities strengthens response measures and defines the role of key entities like deposit insurance fund managers in risk resolution.
The current banking supervision and regulation law was implemented in 2004, with this draft revision first submitted to the NPC Standing Committee for review last December.
