The People’s Bank of China has been exploring the “double pillar” regulatory framework, according to Zhou Xiaochuan, head of PBOC, the 21st Century Business Herald reported.

“Double pillar” refers to monetary policy and macro prudential policy. The concept was put forward to the National Financial Work Conference in July.

Zhou said the central bank will first use monetary policy to regulate, while macro prudential policy is another very important regulatory measure.

The macro prudential policy framework was proposed by the G20, the Global Financial Stability Board and the Basel Committee on Banking Supervision after the 2008 global financial crisis, when some countries realized the necessity to introduce measures for financial stability.

Regulators and financial institutions will try to improve the coordination between the two pillars, the report said.