CBIRC Tightens Risk Classification Rules

China’s top banking regulator has extended risk classification reporting rules for commercial banks to improve risk management in the banking industry, according to 21st Century Business Herald. The paper said the rules released by the China Banking and Insurance Regulatory Commission (CBIRC) will require commercial banks to classify all financial assets according to the level of credit risk, including loans, bonds, interbank assets and receivables. Citing analysts, the new rules will bring regulation into line with international standards and promote the opening up of the financial sector. The new rules will apply to new business starting from July 7, and from December 1 for existing business.