News Column

China : CHINA issues financial regulators to enhance interbank businesses

May 19, 2014

China's financial regulators issued rules to enhance and improve regulation of interbank business to contain financial risks and direct capital into the economy.

The 18 rules were formulated and issued by the People's Bank of China (PBOC), the central bank, and the country's top banking, securities, insurance and foreign exchanges regulators.

Innovation and rapid growth in interbank businesses have played an important role in facilitating liquidity management, improving resources allocation and supporting the real economy.

Some of the interbank businesses should have been better regulated, there has been weak information disclosure and some of the businesses intended to evade financial regulation.

The rules cover lending, deposits, payments and other financing transactions between banks and other financial institutions.

There would be stricter accounting standards and risk control measures for interbank businesses.

The improved regulation would help build a financial market order, promote the healthy development of interbank business, effectively contain financial risks, and guide more capital into the economy.

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Source: TendersInfo (India)

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