80030
China to Step Up Banking Oversight
China to Step Up Banking Oversight

China to Step Up Banking Oversight

China to Step Up Banking Oversight

China will step up oversight in the banking sector this year to reduce financial risks, the country’s banking regulator said, stressing that long-term efforts would be needed to control banking sector chaos.
The China Banking Regulatory Commission said late on Saturday in a statement that its priorities included increasing supervision over shadow banking and interbank activities, Nikkei reported.
“Banking shareholder management, corporate governance and risk control mechanisms are still relatively weak, and root causes creating market chaos have not fundamentally changed,” the CBRC said. “Bringing the banking sector under control will be long-term, arduous, and complex,” it said.
The regulator said violations in corporate governance, property loans, and disposal of non-performing assets will be punished more strictly, and that it would strengthen risk control in interbank activities, financial products and off-balance sheet business. China has repeatedly vowed to clean up disorder in its banking system.
In recent months, regulators have introduced a series of new measures aimed at controlling risk and leverage in the financial system, with everything from lending practices to shadow banking under the microscope.
Already in January, the CBRC has published regulations that put limits on the number of commercial banks that single investors can have major holdings in.
President Xi Jinping has declared that financial security is vital to national security.
The government is particularly concerned about the massive shadow banking industry, lending conducted outside of the regulated formal banking system.
It fears that a big default or series of loan losses could cascade through the world’s second-biggest economy, leading to a sudden halt in bank lending.

Short URL : https://goo.gl/4JdP8u
  1. https://goo.gl/SMZtVT
  • https://goo.gl/etvJM1
  • https://goo.gl/hfdBZ2
  • https://goo.gl/AHn2Q8
  • https://goo.gl/Ww43V9

You can also read ...

While China tries to alleviate its demographic crunch, the aging society means a pension shortfall.
Forget that image of sweatshops making all kinds of cheap...
Russia Economic Recovery Underway
Retail sales in Russia picked up in April, while real wages...
In 2017 banks had total mortgage lending of around $352 billion.
High levels of household debt are the greatest risk to Sweden’...
Greece at Crucial Point
Discussions are heating up over future debt repayments for...
Saudi Gov’t Told Not to Boost Spending
The International Monetary Fund urged the Saudi government not...
Peru Economy Strengthens
Economic growth in Peru strengthened in the first quarter...
Brazil CB Keeps Rates on Hold
Brazil’s central bank considered cutting interest rates last...
EU Tells Italy to Cut Debt, Warns of Euro Spillover
Italy’s incoming government should aim to cut its heavy public...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus