Academic Scientific JournalsFinancial regulation reforms in China – can artificial intelligence be a gamechanger to more sustainable financial regulations
Keywords:
financial regulations, financing, artificial intelligence, China, regulatory changesAbstract
Over the past few years, China has seen a substantial change in financial rules. The country’s recent fundamental redesign of its supervision structure has resulted in a dramatically altered regulatory framework for banks and other financial services organizations operating in China. The National Financial Regulatory Administration (NFRA), China’s new super financial regulator, is revolutionizing regulating the financial sector. Except for the securities industry, all financial sectors are regulated by the central government under the auspices of the NFRA. This involves the People’s Bank of China (PBOC) being granted approval and oversight over financial holding corporations. Artificial Intelligence has demonstrated considerable promise in aiding the financial industry’s regulation growth and assimilation into the framework. The development and application of generative AI technologies that have not been applied to the provision of public services in the PRC are expressly forbidden by the new Generative AI Regulation. Rather, it encompasses all generative AI technologies used in the PRC to serve the people. This is an important distinction for AI algorithms that may be used in several fields. Furthermore, the Deep Synthesis Regulation governs any use of deep synthesis technology in the PRC for the provision of internet information services, the same as the Algorithm Recommendation Regulation governs any use of algorithm recommendation technologies. A.I. has the potential to significantly improve financial regulation development and is already having an increasing effect on China’s financial regulatory landscape.
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