The money paid to the sellers, the debt collectors were taken away by the police: who protects the licensed financial institutions?

The country's many-land merchants use Chongqing to pay their receipts, customers have paid and operators are unable to receive their own operating income. On 5 November, a group of businesses went to the Chinese People ' s Bank, Chongqing City branch, to protest against inadequate supervision and to demand that the settlement of the funds be resolved. The news published yesterday on the independent protest record site showed that the police subsequently intervened and took many others away.

The most outrageous contrast to this incident is that a body holding a People ' s Bank ' s licence to pay business licences has admitted that it has problems in clearing and managing its own funds, while it has gone to the financial regulatory bodies to pursue business income and is under police control at the rights-based sites.

Problems with financial institutions, with losses borne by ordinary businesses; Businesses turn to the regulatory authorities, and the first to address the problem is the police.

♪ The customer paid well and the business income was stuck ♪

Before the payment, he was a treasure payment, a third-party payment agency with a business licence from the People ' s Bank of China.

Since late October, multiple businesses nationwide have been showing that the funds were not entered into bank accounts at the scheduled time, as normal transactions were completed through the company ' s POS machine and the payment route.

In early November, businesses from Henan, Hubei, Sichuan and Guangdong travelled to Chongqing and the new regions to pay for their arrears.

Public reports indicate that the funds affected range from hundreds to hundreds of thousands of dollars. Some businesses were unable to withdraw their business funds from completed transactions for many consecutive days, and the business turnover was affected.

November 4, the payment of a apology announcement was issued by the Government of Zhuan.It was acknowledged that the large settlement delay was due to the company ' s own deficiencies in liquidation movement control, the cash flow process and internal risk management.

The significance of this announcement is that the enterprise has recognized that responsibility for late settlement is its own management.

Recognition of management failures does not, however, explain the whereabouts of the funds.

Businesses need to know where the business money has been collected, whether the funds are fully retained, why they cannot be paid on time and whether the business can meet its obligations to pay all outstanding transactions.

The bulletin did not disclose the total amount owed, the number of businesses involved and the unified payment schedule.

The regulatory authority has received complaints and the business has not found the money

4 November, Journalist, Economic WatchThe reception arrangements were seen at the Huehking City branch of the People ' s Bank. The supervisory authority has received complaints and has set up special mail-call reception points at the expense of the funds.

However, businesses still need to go to the regulatory authorities to protest collectively.

Yesterday, 5 November, it recorded the situation of the paying business in front of the Huongqing branch of the People ' s Bank and stated that the police had taken many of its personnel away.

Why would a business move from the head office of a paying company to a central bank office? The reasons are not complex.

They are already facing not just the default of contracts in ordinary enterprises, but the widespread delay in the delivery of the funds in the transaction by the licensed paying institutions.

Payment plates mean that the institution is regulated to access and can engage in a particular payment business, and that it should comply with regulatory requirements for the liquidation of funds, risk control and protection of business interests.

While the licence itself does not guarantee that business will never be in business, there is reason for the public to ask the Supervisory Authority to explain why the payment agencies authorized to operate have put large amounts of business funds into a situation where they cannot be properly settled.

Payment has previously been subject to regulatory penalties for compliance issues. On 6 November, the Wakatiya Times cited a business-based analysis of its historical compliance deficiencies and the delayed entry incident, reflecting the potential for long-term problems with the liquidation system and risk management.

This further expanded the nature of the incident.

If the risk of a payment agency is not sudden but is accumulated on the basis of existing compliance deficiencies, the responsibility for supervision cannot be reduced to a simple case of urging business restructuring after an accident has occurred.

The obligation to pay is not resolved, while the order of rights is regulated first

The way local public authorities operate shows a familiar pattern of handling of payments.

When large numbers of victims collect money collectively, the government system faces two tasks: one to resolve financial disputes and the other to manage the crowding of protesters.

The former involve complex business accounts, fund liquidation, supervisory responsibility and potential business risks, and are costly to handle. The latter can be accomplished quickly through police presence, crowd dispersion and control of the scene.

When news of the police taking away business members coincides with the fact that business funds remain unpaid, the problem is particularly acute: the management capacity of the State apparatus for defenders appears to be more directly effective than the ability to correct risks in the licensed paying institutions.

This does not mean that the conduct of each person on the ground is not subject to the law, but rather that the victim business should not be considered a public security issue that needs to be addressed as a priority because of the gathering of the injured business to protest.

The affected business owners did not claim additional benefits, but rather the business income from the transactions that had been completed.

Financial risk and regulatory failure to secure a case

The payment was made in the form of a commitment to establish a working group, to verify the transactions and to arrange for the disbursement of funds. The real solution to these problems depends ultimately on whether the business account actually receives funds.

The most important factual indicator for this incident is not how much rectification has been announced, but whether the amount outstanding has decreased, what the actual rate of payment has been, and whether the business funds are complete.

The responsibility for supervision of the Chinese People’s Bank’s Zhongqing municipal branch cannot be terminated by the company’s public apology.

In the event of a large-scale financial settlement anomaly in a licensed institution, the regulator has the responsibility to use its statutory authority to protect the interests of the business and to investigate the persistence of prior risk management deficiencies.

A governance system that can quickly organize police responses to recovery business, but that does not provide business income security as quickly as possible, revealing the imbalance between public power and the protection of property rights.

The truth revealed by the case of the payment was the fragile position of the ordinary operator in the Chinese financial system. They must be confident that the licensed institutions can handle transactions normally and must comply with the rules governing payments, but not necessarily be able to obtain their own funds in a timely manner when the institutions lose control.

When regulation does not prevent problems from occurring and does not quickly address the loss of victims, the only pressure that ultimately exists for businesses to gather for money is to put pressure on them.

When this approach is followed by police intervention, financial risks further develop into a problem of restricted rights of citizens.