BANKS

China’s banking regulator launches nationwide checks on lenders: report

Inspections will include scrutiny of payment guarantees at wealth management firms, says newspaper

PUBLISHED : Wednesday, 10 August, 2016, 11:22am
UPDATED : Wednesday, 10 August, 2016, 11:22am

China’s banking regulator has launched nationwide health check on the banking industry, covering a wide range of business areas including deposits, lending, bills and wealth management, according to a newspaper report.

The regulatory scrutiny follows a series of financial scandals involving bill businesses hit lenders, the

National Business Daily reported on Wednesday.

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The inspections, which target not only commercial banks, but also trust firms, financial leasing companies and money brokers, will look at whether deposits have been misappropriated, principal payment has been guaranteed on wealth management products and whether there are under-the-table deals involving bill businesses, the article reported.

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The financial news service Caixin reported on its website on Wednesday that China’s securities regulator has urged securities firms, fund houses and futures brokerages to conduct self-inspections on their wealth management businesses and take corrective measures accordingly.