The two merged regulators will hand off duties such as proposing laws to the People's Bank of China in a sign that the central bank is beefing up its regulatory role.
China today unveiled plans for the biggest ministry shake-up in years, including the merger of its banking and insurance regulators to reduce risks to its financial system from a rapid build-up in debt.
Xi, 64, is set to continue for a life term as the NPC approved the removal of the two-term limit for the president and the vice president.
Since the beginning of a year ago, Beijing has cracked down on leverage and risky market practices, with China's financial regulators releasing a flurry of new rules in an attempt to rein in risks.
Liu He, President Xi Jinping's top economic adviser, is overseeing that battle on financial risk and praised the reforms as "revolutionary" in an editorial published in Communist party mouthpiece the People's Daily on Tuesday.
Several new ministries will be created, including a more encompassing Ministry of Agriculture and Rural Areas as well as ministries for emergency management, ecology and environment, and veteran affairs.More news: 'American Idol' Revival Helps ABC Belt out 40-Month High in Ratings
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China will form a powerful new competition and food safety regulator in a bid to ramp up oversight of mergers and acquisitions and price-fixing as the world's second-largest economy seeks to make policymaking more efficient.
The changes include the establishment of a national market management bureau.
The new merged entity will directly report to the State Council, or cabinet.
China's financial system has become increasingly tough to regulate due to its sheer breadth.
Established in 1998, CIRC conducts administration, supervision and regulatory functions over the Chinese insurance market.
Many brokerages also structure wealth management products as a channel for hidden bank lending, in addition to the more traditional business of facilitating share trades and investment banking services.