On April 6, the People’s Bank of China (PBOC) issued a consultation paper on the proposed Financial Stability Law.
The draft law outlines a cross-agency mechanism for maintaining financial stability and a recovery and resolution regime for financial institutions as well as financial market infrastructures operating in China. The law proposes to introduce a number of resolution tools, a resolution fund and provides for protection for creditors during resolution based on the ‘no creditor worse off’ principle.
ISDA plans to respond to the consultation on the proposed law. The deadline is May 6.