To guard against payment risks and promote the healthy development of the payment service market, the People's Bank of China (PBOC), together with other relevant departments, has drafted a draft of the Regulations on Non-bank Payment Institutions (hereinafter referred to as the Regulations), according to the PBOC's website on January 20.The Regulations encourage the principles of openness and competition, and establish a sound marketization mechanism in terms of institutional access and withdrawal, business rules and so on.At the same time, the Regulations strengthen anti-monopoly regulatory measures in the field of payment, clearly define the scope of the relevant market and the criteria for determining the dominant market position, and maintain the market order of fair competition.
Preventing financial risks in the field of payment is an important link to prevent the occurrence of systemic financial risks.In June 2010, the People's Bank of China formulated the Measures for the Administration of Payment Services for Non-financial Institutions, which laid the regulatory foundation for non-bank payment institutions (hereinafter referred to as "payment institutions").In recent years, the payment service market has developed rapidly, innovation has emerged in an endless stream, risks are complex and volatile, and institutions face new requirements for exit and disposal, the central bank said.There is an urgent need to accelerate the introduction of Regulations, enhance the legal level of supervision of payment institutions, and further standardize the compliance operation of payment institutions.
"The Measures for the Administration of Payment Services for Non-financial Institutions, as a departmental regulation, will be upgraded to the Regulations as an administrative regulation with a higher legal level and stronger deterrence, which will better regulate the payment and clearing market.""Said Dong Ximiao, chief researcher of Lianlian Finance and part-time researcher of Financial Research Institute of Fudan University.
Specifically, the Regulations adhere to the concept of functional supervision.Emphasize that the same businesses abide by the same rules and avoid regulatory arbitrage and regulatory gaps.At the same time, we should combine institutional supervision with operational supervision.In accordance with the principle of "license first, license later", we will exercise institutional supervision over payment institutions, and at the same time exercise all-round supervision over their business operations and related transactions.Moreover, insist on penetrating regulation.We will strengthen supervision over access and changes to shareholders, actual controllers and ultimate beneficiaries.
It is worth noting that the Regulations take preventing systemic financial risks as the bottom line and enrich the means of supervision.It is clear that the anti-monopoly regulatory measures in the field of payment should be strengthened, the scope of relevant markets and the criteria for identifying dominant market positions should be clearly defined, and the market order of fair competition should be maintained.According to the Regulations, if "a non-bank payment institution occupies half of the market share of the national electronic payment market", the central bank may consult the anti-monopoly law enforcement agency of the State Council to examine whether the payment institution has a dominant market position.
Dong said the regulation and the anti-monopoly law are effectively aligned, giving the central bank the power to determine the monopoly of the payment service market, filling the gap in previous laws and regulations.The regulations in the aspect of antitrust and prevent capital sprawl detailed rules, is the central economic work conference, "strengthen anti-monopoly and prevent capital sprawl" spirit embodies, antitrust regulation helps strengthen the payment service market, maintaining fair market competition order, protect the legitimate rights and interests of market participation main body, promote health high quality payment service market development.