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E-MINI S&P (U1): Northbound

     BEIJING (MNI) - The People's Bank of China (PBOC) on Tuesday released a new
regulation calling for tightened supervision over "systemically important
financial institutions" to prevent financial risks.
     As a policy framework, the new rules will cover commercial and policy
lenders, brokerages and insurers, and particularly target large-scale financial
institutions with complex structures and interconnected counterparties,
according to a statement on the central bank's website.
     Caixin reported today that more than 10 banks, four insurers, and  Internet
financial service providers may be recognized as Domestic Systemically Important
Financial Institutions (D-SIFIs) that will need to comply with the new
regulation. 
     The PBOC, together with the China Banking and Insurance Regulatory
Commission and the China Securities Regulatory Commission, will propose
additional requirement on the capital and leverage ratios of these financial
institutions, according to the regulation.
     The three regulators will conduct risk assessments and stress tests on
these institutions, and raise extra requirements based on the outcome, according
to the regulation.
     The PBOC said it will minimize the new regulation's immediate impact on the
financial industry and allow institutions to make transitional arrangements for
compliance.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com
--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com
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