CBRC to tighten banking supervision

Source: Xinhua | 2017-04-11

CHINA’S banking regulator will tighten supervision on a wide range of banking operations from granting credit to Internet finance, signaling strong rules will be issued to curb systematic financial risks to the sector.

The China Banking Regulatory Commission released a guideline yesterday, asking banking institutions to prevent risks in 10 key areas, including beefing up risk management over credit, curbing excessive credit in the property sector, controlling investment in bond products, and cleaning the fraudulent online peer-to-peer lending business.

“Risk prevention should be put higher on the agenda,” the CBRC said. “We should keep watch and resolve those highlighted risks to avoid any appearance of systematic risks.”

The regulator also warned that institutions that breach the law will be punished.

The guideline came after 17 institutions, including Xinda Asset Management Co, Ping An Bank, China Merchants Bank and Bank of Communications, faced fines and were warned for indulging in irregular arbitrage, illegal transactions and improper fees or charges.

It was the first guidance filed after Guo Shuqing, former head of the China Securities Regulatory Commission, took the helm of the banking watchdog.