China’s banking regulator steps up fight against financial risk amid threat of ‘chaos’ in sector
Violations in corporate governance, property loans and disposal of non-performing assets will be punished more strictly, watchdog says
China will step up oversight in the banking sector this year to reduce financial risks, the country’s banking regulator said, stressing that long-term efforts would be needed to control “chaos” in the industry.
The China Banking Regulatory Commission (CBRC) said late on Saturday that its priorities included increasing supervision over shadow banking and interbank activities.
“Banking shareholder management, corporate governance and risk control mechanisms are still relatively weak, and root causes creating market chaos have not fundamentally changed,” it said in a statement.
“Bringing the banking sector under control will be long-term, arduous and complex.”
Violations in corporate governance, property loans and disposal of non-performing assets would be punished more strictly, the regulator said, adding that it would also strengthen risk control in interbank activities, financial products and off-balance sheet business.