Financial oversight redo seen as effective

China's decision to merge banking and insurance regulators underscores policymakers' intention to address a financial regulatory vacuum and enhance supervision through a more unified approach, financial experts said on Wednesday.

At the same time, their decision to keep the securities regulator independent boosts the status of the securities market in serving the economy, they said.

The decisions, if approved by the country's top legislature, would end the framework consisting of the People's Bank of China and three national financial watchdogs - the banking, securities and insurance regulatory commissions - that has governed the country's financial regulation for the past 15 years.