China's sizable banks, insurers told to prepare recovery plans to deal with potential risks

China's sizable banks, insurers told to prepare recovery plans to deal with potential risks

China's banking and insurance watchdog issued rules on Wednesday requiring sizable banks, insurers and financial leasing firms to prepare recovery plans for the unlikely event that they run into financial trouble, as the regulator seeks to enhance risk management of country's financial sector.

FILE PHOTO: A man rides an electric bike past the CBIRC building in Beijing
FILE PHOTO: A man rides an electric bike past the China Banking and Insurance Regulatory Commission (CBIRC) building in Beijing, China February 14, 2019. Picture taken February 14, 2019. REUTERS/Stringer

BEIJING: China's banking and insurance watchdog issued rules on Wednesday requiring sizable banks, insurers and financial leasing firms to prepare recovery plans for the unlikely event that they run into financial trouble, as the regulator seeks to enhance risk management of country's financial sector.

Banks, rural credit cooperative and other deposit-taking institutions with total assets of no less than 300 billion yuan (US$46.96 billion) should prepare such recovery and resolution plans, the China's Banking and Insurance Regulatory Commission (CBIRC) said in a statement on its website.

Insurers with total assets of no less than 200 billion yuan should also prepare such plans, it added.

(US$1 = 6.3885 Chinese yuan renminbi)

(Reporting by Cheng Leng and Ryan Woo; editing by Louise Heavens)

Source: Reuters

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