Risk controls in the banking sector.....>

CHINA PRESS: Risk controls in the banking sector should not only crack down on

illegal transactions but also optimize management structures and enhance

regulatory coordination to support the underlying principle of avoiding systemic

risks, the Financial News, a journal run by the People's Bank of China, said in

a commentary on Tuesday. As restrictions on interbank and wealth management

businesses are tightened, interbank assets and liabilities have posted negative

annual growth rates at the end of August of 13.8% and 1.6%, respectively, to

CNY3.2 trillion and CNY1.4 trillion, the commentary noted. Regulators need to

improve their capacity to prevent risks from innovative financial products as

well as prepare risk emergency plans, the commentary argued. Regulators also

should strengthen their communications and coordination, which was the purpose

of establishing the Financial Stability and Development Commission, the

commentary said. (Financial News)