The inclusion of negotiable.............>

CHINA PRESS: The inclusion of negotiable certificates of deposit (NCDs) into the

macro-prudential assessment (MPA) of banks conducted by the People's Bank of

China will not impose undue pressure on the banking sector, Xu Zhong, chief of

the PBOC's research bureau, said in a commentary published by Caixin Magazine on

Tuesday. In its second-quarter monetary policy implementation report, the PBOC

noted that it will include NCDs issued by banks with over CNY500 billion of

assets when it calculates their interbank liabilities, beginning in the first

quarter of 2018. Xu said that of the 35 banks with over CNY500 billion in

assets, many had already voluntarily reduced their interbank liabilities since

the end of the second quarter. The PBOC will continue to improve its MPA testing

and strengthen communication with the financial sector in a bid to stabilize

expectations and implement regulations at an orderly pace, Xu stressed. (Caixin

Magazine)