Reform enhances security of financial system

Financial risks, in different forms, are frequently emerging in many countries and regions, posing a threat to the global financial system. The instability of the global financial markets poses a risk to global development and is obstructing economic recovery. The 2008 global financial crisis revealed the inadequacies in the financial regulatory system, which led to economic recession.

As economic globalization faces headwinds, frequent financial risks occur, destabilizing the global financial system. Issues such as the United Kingdom's pension crisis intensifying to cause turbulence in the bond and pound sterling market, ongoing crises in the banking sectors of the European Union and the United States, and recurring concerns over Washington's debt default are eroding the US' credit and increasing financial market uncertainties.

In its "Global Financial Stability Report" in April, the International Monetary Fund warned that as the resilience of the global financial system is being tested by higher inflation and fragmentation risks, financial stability risks are rapidly increasing. The global financial system is an interdependent system, with the financial stability of each country interconnected. Therefore, the stability of China's financial system is important for the stability of the global financial system.