China will further tighten supervision over the shadow banking sector, the country’s banking regulator said on Friday, part of an ongoing campaign to control off-balance sheet lending by the country’s financial institutions.
However at the same time, the China Banking Regulatory Commission will continue to support buyers of affordable housing, first-time home buyers and small- and medium- sized businesses amid signs of a slowing economy.
“Currently, the economy, broadly speaking, is stable. But downward pressures are relatively significant which is a reflection of … imperfect financing structures, inefficiencies in finance allocation and use and difficulties with SME (small and medium enterprises) financing,” a press release circulated at the CBRC’s conference said. Wang Zhaoxing, a vice president at the China Banking Regulatory Commission, told a news conference that the regulator will improve ways to manage deposit-to-loan ratios, an indicator of a bank’s ability to absorb risk, and classify bad loans.
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Shen Yan and Jonathan Standing, Reuters via CHINA US Focus http://ift.tt/1tOapLa
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