Skip to main content
Best News Website or Mobile Service
 
WAN-IFRA Digital Media Awards Worldwide
Best News Website or Mobile Service
 
Digital Media Awards Worldwide
Hamburger Menu

Advertisement

Advertisement

Business

China steps up oversight of commercial banks

China steps up oversight of commercial banks

FILE PHOTO: Surveillance cameras are seen in front office towers in the Lujiazui financial district, following the coronavirus disease (COVID-19) outbreak, in Shanghai, China, Oct 17, 2022. REUTERS/Aly Song

BEIJING: China is stepping up risk control requirements for commercial banks' off-balance sheet business, marking another step in Beijing's efforts to prevent risks from shadow banking activities.

In new measures announced by the China Banking and Insurance Regulatory Commission (CBIRC) on Friday (Dec 2), commercial banks will have to routinely conduct stress tests on their off-balance sheet business to gauge risks and ensure such activities are within their business scale and risk-management capability.

In recent years, China has stepped up oversight of off-balance sheet financing, concerned about the hidden risks in the high volume of complex and potentially risky loans in the sector.

Commercial banks should also disclose major risk events and investment operations of the business, the CBIRC said.

Source: Reuters/cm

Advertisement

Also worth reading

Advertisement