How China’s ‘One Committee, One Bank, One Bureau, One Council’ Reshapes Financial Supervision

Overview

A comprehensive financial regulatory system is considered essential for building a modern Chinese financial system and achieving the goal of a strong financial nation. Since 2024 the system has been reorganised according to the March 16 2023 “Party and State Institutional Reform Plan”, resulting in a new configuration described as “one committee, one bank, one bureau, one council”. The distinctive feature of the framework is the parallel leadership of the Communist Party and the State.

Party‑Level Structure

The Central Financial Committee (CFC) was created as a Party organ that establishes a three‑tier management hierarchy (central‑province‑city) to exercise centralized Party leadership over financial work. The CFC is responsible for top‑level design of financial stability and development, overall coordination, promotion, supervision of implementation, and review of major policies and issues in the financial domain. Its office also serves the Central Financial Work Committee, which handles Party‑related political, ideological, organizational, style and discipline construction within the financial system.

Central Financial Committee vs. Central Financial Work Committee

Central Financial Committee : Party organ focused on unified leadership, top‑level design, decision‑making, coordination and overall supervision of financial stability and development.

Central Financial Work Committee : Party‑dispatch organ that guides political, ideological, organizational, style and discipline work in the financial system and co‑locates with the CFC office.

State‑Level Structure

People’s Bank of China (PBOC) : A State Council department that formulates monetary policy and conducts macro‑prudent supervision. It operates a three‑tier “central‑province‑city” system of branches.

State Administration of Financial Supervision (SAFS) : Formed from the former China Banking and Insurance Regulatory Commission (CBIRC). It is a State Council‑direct agency that oversees all financial sectors except securities, and has absorbed certain supervisory functions previously held by the PBOC and the China Securities Regulatory Commission (CSRC).

China Securities Regulatory Commission (CSRC) : Now a State Council‑direct agency responsible for unified supervision of the securities market.

State‑owned Assets Supervision and Administration Commission (SASAC) : Manages state‑owned assets and oversees the reform of central enterprises.

State Administration of Foreign Exchange (SAFE) : Manages foreign‑exchange reserves, formulates foreign‑exchange policy and oversees cross‑border capital flows.

Historical Evolution of China’s Financial Supervision

Planned‑economy mixed supervision (People’s Bank “one‑unified” era) : Early period characterised by unified oversight under the central bank.

Sectoral supervision “one bank, three commissions” (2003‑2017) : The Banking Regulatory Commission led a fragmented supervisory regime, resulting in regulatory blind spots.

Return to mixed supervision with the Financial Committee “one bank, two commissions” (2017‑2023) : The State Council’s Financial Stability and Development Committee (often called the “Financial Committee”) was established to coordinate stability and reform, integrating policy, risk analysis and international finance considerations.

Current “one committee, one bank, one bureau, one council” (2024‑present) : The latest framework consolidates Party‑level leadership (CFC) with State‑level agencies (PBOC, SAFS, CSRC, SASAC, SAFE) to streamline coordination and strengthen centralized oversight.

This architecture aims to strengthen centralized Party leadership while ensuring effective government oversight, thereby supporting a stable and resilient financial system.