Jiao Jinpu, People's Bank of China Consumer Protection Secretary

Lujiazui Forum 2013 is being held from June 27 to 29 in Shanghai, theming at“A New Vision for Financial Reform and Opening Up.” As its official website and organizer of some panel cessions. Jiao Jinpu, People's Bank of China Consumer Protection Secretary says that rights and interests protection law on financial consumption is not perfect. China’s People’s bank faces many challenges in protecting the rights and interests of financial consumption, especially when the efforts have just been started. China’s law is not perfect. There is no higher law, and not even the system.

The following is a transcript of his speech:

Protection on rights and interest of financial consumption, especially financial consumption in People’s Bank of China, has just been started. We are facing a lot of challenges in this area. China’s law is not perfect. There is no higher law, and not even the system. Our institutional rules are limited to different departments, as Professor Zhou Hao said, there are many people in the U.S. collecting such kind of rules. Many leaders in People’s Bank of China have participated in similar activities, but it will take some time to come out with a guidebook.

The second challenge is we are still in short of means in dealing with the relationship between financial consumers and financial institutions, especially when financial products, sales, and financial activities are involved. I often say that the hotline for financial consumers’ rights and interests protection is only one of our service, it is very hard to mediate the relationship between financial activities and consumers’ consuming activities.

The third challenge is how to inspect, including regulation on so many financial products. Take bank financing as an example, there are more than ten thousand products. It is impossible to inspect them one by one. It is a challenge to educate consumers and improve their ability to recognize financial products. This is because it includes all the financial consumers in China. I don’t have a statistic figures, but I guess there are about 4000 to 5000 million financial consumers. This is a problem of one to the public. The other challenge is about the institutions. How to

How to supervise and guide these institutions, and persuade them to actively take the protection of consumers’ rights and interests into their corporate governance and development strategy? Financial institutions pay much attention to their own developments. Under such condition, it is very likely for them to ignore or pay less attention to the protection of consumers’ rights and interests, including some tips on risks. I believe that there is still a long way to go in terms of protections on rights and interests of financial consumptions. I hope to get your support, and precious advice, in order to jointly promote this work. That’s it.

Thank you.