Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website
Subscribe CustomBlackClose

Belt & Road Weekly Subscription Form

download_pop

Research ReportCustomBlackClose

The full edition of the report is available at Xinhua Silk Road Database. You can click the “Table of Content” to have a general understanding of it.

Click on the button below to create your account and get immediate access to thousands of articles.

Start a Free Trial

Xinhua Silk Road Database
Economy

Central bank upgrades regulatory framework to ward off financial risks

December 30, 2015


Abstract : China's central bank said Tuesday it will upgrade its macro prudential policy framework, an approach to financial regulation aimed at reducing systemic risks.

BEIJING, Dec. 29 (Xinhua) -- China's central bank said Tuesday it will upgrade its macro prudential policy framework, an approach to financial regulation aimed at reducing systemic risks.

The new mechanism, macro prudential assessment, will take into consideration seven aspects when evaluating the financial system to prevent systemic risks and improve counter-cyclical adjustment, the People's Bank of China (PBOC) said in a statement.

The capital adequacy ratio, a measure of an institution's ability to cushion loan risks, will be the core of the assessment, said the PBOC.

Apart from loans, other assets including investment in bonds and equities will be added to the PBOC's checklist for financial institutions, a move to prevent them from transferring their assets to evade credit control.

The new mechanism will also keep an eye on irrational interest rate setting to avoid unhealthy competition. <   China has moved to further liberalize its financial system in the past year, removing restrictions on bank interest rates and giving banks more freedom to lend by removing a loan-to-deposit ratio stipulation.

The government has listed as one of its major tasks in 2016 to guard against and defuse financial risks, according to the Central Economic Work Conference, a key economic meeting, held earlier this month.  Enditem

Scan the QR code and push it to your mobile phone

Keyword: banking PBOC central-bank

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to [email protected] and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial

Ask Us A Question belt & road login close

If you have any questions, please enter them in the box below.

Identifying code Reload

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to silkroadweekly@xinhua.org and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial