Commission to improve financial security

The recently established Financial Stability and Development Committee under the State Council, China's Cabinet, is another important move to strengthen the country's financial security and help the People's Bank of China, the central bank, to better manage macro-prudential affairs and prevent systemic risks.

Since no financial system is foolproof and free of systemic risks, financial work should be aimed at protecting the financial system, for which macro-financial supervision is mandatory. The rapid development of financialization and globalization since the 1980s has also led to some regional and global financial crises. In fact, the global economy hasn't completely recovered from the global financial crisis of 2008.

Given these facts, the authorities should focus their attention on preventing financial risks in key sectors, improving financial security and building a strong risk-disposal mechanism.