Among the members of the CPPCC National Committee in the economic sector, there are also members of the foreign-funded enterprises, except for officials, heads of state-owned enterprises and private entrepreneurs. Their suggestions and suggestions have played an important role in the further reform and opening up of our country. Morgan, chairman and chief executive of JP. China, told Li Yi's interview with China trade daily. He talked about his views on preventing financial systemic risk, opening financial industry and internationalizing RMB.
Reporter: the proposal you brought this time is about preventing financial risk. Can you introduce it in detail?
Li Yi: the nineteen major reports of the party will prevent and resolve major risks as the top priority of the three major battle areas, and emphasize that we should improve the financial supervision system and keep the bottom line of systemic financial risks. This is the key battle to win a well-off society, and it is the fundamental guarantee for the long-term and stable development of China's economy. We believe that, in order to effectively prevent and resolve major financial risks, the key is to use scientific ideas, methods and means to regulate all types of informal financial behavior.
At present, all parties have reached a consensus on the complexity and harmfulness of informal financial behavior, and have realized the limitations of the current separate supervision system. However, there is still much work to do in how to scientifically understand and deal with it. First of all, the statistics of irregular financial behavior are in disorder. The irregular savings tools, intermediary pipelines and credit businesses are often confused with each other, resulting in repeated computation. Secondly, in regulatory practice, we usually only look at some aspects of informal credit, intermediary pipeline or savings, rather than conduct a comprehensive study based on the direction of capital flow. Finally, the lack of top-level design has failed to carry out the overall, key and systematic monitoring of the informal financial behavior system.
Reporter: you are in a foreign financial institution. In your opinion, what are the international experiences that China can learn from China in the field of financial risk prevention?
Li: after the global financial crisis in 2008, the major developed countries in Europe and the United States have implemented a drastic reform of their financial regulatory framework, especially putting an emphasis on the regulation of informal financial behavior, and put forward many good practices. Take the United States as an example: first, the top floor design. For a long time, the United States financial regulatory framework is famous for its fragmentation, complexity and territorialization, which seriously restricts the regulatory capacity of federal and local regulators. The Dodd and Frank law requires all systemically important financial institutions to accept more stringent regulatory measures. It emphasizes the need to consider systemic financial risks. For the first time, it clarifies the responsibilities of the Federal Reserve to maintain financial stability at the legal level. The two is scientific statistics. According to the U.S. "Dodd Frank act" was added under the Ministry of Finance on but relatively independent financial research office, the main responsibility is to financial stability as the goal, focus on collecting and standardized financial data, regularly report to Congress and its operational status of systemic financial risk analysis. Three is the key monitoring. The subprime crisis is the direct consequence of the relaxation of financial supervision. Dodd and Frank act strictly restrict commercial banks engaging in sub regular loans and other informal financial businesses. They need to standardize information disclosure and strengthen supervision over financial derivatives.
Reporter: in addition to preventing financial risk, what kind of opinion do you have on the opening of the financial market? What are the new movements of J.P. Morgan in China?
Li 1: 2018 is China's reform and opening up 40th anniversary. The Chinese government has recently launched a series of bold reform initiatives, vigorously promoting extensive economic reform and opening up the Chinese financial market. The opening of the financial market and the transformation of China's economic structure complement each other. JP Morgan welcomed the Chinese government's commitment to further opening up the financial market and was excited by the new opportunities brought by the new era. The Chinese market is of great strategic importance to Morgan chase global development. Especially when Chinese enterprises are gradually expanding to the international stage, JP Morgan can better help Chinese enterprises "go global". In the foreseeable future, JP Morgan will continue to increase investment in the mining process Chinese, attention to economic transformation and upgrading Chinese and Chinese enterprise internationalization needs and pain points, make full use of JP Morgan's global network, a full range of business platform and leading-edge products, to achieve economic and China Chinese JP Morgan and enterprise growth together in the new era.
Reporter: what do you think about the process of RMB internationalization? In February this year, the Central Bank of China decided to authorize JP Morgan Chase Bank (N.A.) as the US renminbi business clearing bank. In this regard, how will Morgan chase the process of internationalization of the RMB?
Li Yi: there is no doubt that the opening of China's financial market will further promote the process of internationalization of the RMB. Since the start of the internationalization process of RMB in July 2009, RMB internationalization has made great progress in the past 10 years. Especially in 2016, the RMB's accession to the SDR basket has become a milestone in the process of RMB internationalization. With the continuous promotion of internationalization and marketization of RMB, the further opening of China's financial and capital market and the pace of "going out" of Chinese enterprises and financial institutions, the market share of RMB is expected to increase in the future.
JP Morgan as the first non Chinese RMB clearing bank authorized by PBC is an important step for RMB internationalization, and will further promote the use of RMB in the US and cross-border transactions.