Free Trial

MNI: PBOC Sets New Rules to Control Systemic Financial Risks

     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
[TOPICS: MMQPB$,M$A$$$,M$Q$$$,MI$$$$,MGQ$$$]

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.