The Chinese central bank has tightened financial technology rules and is going to take more steps to better regulate payment transactions, financial holding companies and the use of personal data. This was reported by Xinhua state press agency on Monday, referring to statements by central banker Yi Gang of the Chinese central bank.
In a video message at a recent meeting on the regulation of major technology companies at the Bank of International Settlements, based in Basel, Switzerland, Yi said that “good “fire walls should be set up to prevent financial risks from moving across the sector and to other sectors.
He made a call to sever unwanted connections between financial and business information, to prevent a monopoly in the closed loop of data, network and financial activities.
In China, Innovation has made financial services more efficient in recent years and reduced costs. Mobile payment services now have a penetration of 86% and small businesses are now better able to borrow money through digitised credit services.
New challenges, according to Yi, are companies that provide financial services without a licence, unfair competition from abuse of market dominance and companies that collect excessive amounts of consumer data.
The regulator announced stronger supervision of payment traffic. Financial holding companies will be better regulated and authorities will examine whether data can be transferred more conveniently and used in a more reasonable manner, taking into account the privacy and security of personal data.