Joined: 26 Jan 2018
|BEIJING , May 17 (Xinhua) -- To strike a balance between financial stability, gradual deleveraging and stable economic growth, China's banking regulators have rolled out a slew of measures.
Authorities have said the country will continue to implement a prudent monetary policy and emphasize the elimination of financial risks. However, the priority of regulation is to avoid new risks associated with the disposal of existing ones.
Recent regulatory measures, which focus on latent risks and pressing problems in the banking system, target both irregular operations and overall market order, and authorities also want to increase market players' ability to fend off risks, said Xiao Yuanqi, head of the prudential regulation bureau of the China Banking Regulatory Commission (CBRC).
"Potential impacts of these measures have been assessed in advance," said Xiao, adding that CBRC will take full account of actual risks in the banking sector and step up financial regulation.
To push forward tightening of the regulation, authorities will carry out the measures in an orderly way, offer banks a buffer period of four to six months for self-scrutiny and rectification, and set different standards for new and old businesses, said Xiao.
The banking regulator announced Monday it is implementing 46 legislative programs in 2017, covering risk management for bankruptcy and liquidity of commercial banks as well as for cross-industry services to plug regulatory loopholes and guard against financial risks.
Research will be done on another 16 programs, including microfinance company supervision and trust company liquidity management, according to the CBRC's work plan.
China will enhance coordination in financial regulation to manage the timing and pace of regulation to stabilize market expectations, according to a quarterly monetary policy report released by the People's Bank of China (PBOC).
"Banks across the country are conducting self-scrutiny, and regulators have not carried out on-site inspections," said Xiao, underlining the need to grasp and monitor the overall situation of the banking system.
As for the shrinking inter-bank business reported by some banks, Xiao pointed out that the phenomenon might stem from jitters caused by misunderstandings of relevant policies.
"It is normal that financial institutions adjust asset-liability structures according to the external business environment and internal resource allocation," Xiao said. "CBRC will firmly support these adjustments that are conducive to risk control."
Banks usually have stress tests on mortgage loans -- which account for a big share of their loans -- to ensure low non-performing ratios.