China released a budget for the soon-to-be-established national financial regulatory administration on Tuesday, setting the 2023 general budget of the new regulatory body at 10.63 billion yuan ($1.54 billion).

The country seeks to set up a national financial regulatory administration that shoulders supervisory responsibilities across the financial industry, except the securities sector. Placed directly under the State Council, China's Cabinet, the new administration is set to be established on the basis of the China Banking and Insurance Regulatory Commission, which will not be retained.

The budget for regulatory expenditures in the financial industry under financial inspection and case handling for 2023 is 259.72 million yuan, a decrease of 26.01 million yuan from the budget execution amount in 2022, representing a 9.1 percent decline. This is mainly due to a reduction in expenditures on regulatory monitoring and inspection projects.

The budget for regulatory expenditures in other areas of the financial industry for 2023 is 193.72 million yuan, according to the administration's budget, which was published on the website of the CBIRC on Tuesday.

Law enforcement and case handling are a key focus of the forthcoming administration in fulfilling its regulatory duties in the banking and insurance sectors.

These projects mainly include organizing the investigation and prosecution of major cases in the banking and insurance sectors, guiding and coordinating risk disposal, organizing and guiding the investigation of major cross-regional cases at banking and insurance institutions and cracking down on illegal behavior by these institutions.

In the new normal, which means slower but sustainable and higher-quality growth, the economic and financial situation is becoming more complicated, the CBIRC said.

In 2023, the general public budget for law enforcement and case handling is proposed to be 83.16 million yuan. Among the total, 43.6 million yuan will be allocated to special inspections of banking institutions, with a focus on the reform and risk mitigation of small and medium-sized banks, effective prevention of systemic risks, continuous improvement of China's financial regulatory mechanisms and the enhancement of quality and efficiency in serving the real economy.

The new financial regulatory body will allocate 26.7 million yuan to special inspections of nonbank financial institutions, selecting key financial institutions such as insurers, trust companies and financial asset investment companies for targeted onsite inspections.

It will also allocate 12.86 million yuan for the handling of major risks, firmly upholding the bottom line to ensure no systemic risks arise.