China steps up campaign to curb rising risks in financial sector
Regulator resists lobbying to relax the rules governing bad-loan buffers
Shanghai
CHINA is stepping up efforts to rein in risks in the financial sector, curbing banks' use of complex financial products and resisting lobbying to relax the rules governing bad-loan buffers.
China's banking regulator is pushing back against requests from the country's largest banks to reduce the 150 per cent minimum ratio for bad-loan provisions, a move that is likely to curb their profits, people familiar with the matter said last Thursday. Banks whose ratios are already below that level are being urged by the China Banking Regulatory Commission (CBRC) to take steps to restore their buffers, said the people, who asked not to be named discussing private information.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Great Eastern chairman appeals for patience as shareholders fume over share price ‘disaster’
S&P Global first-quarter profit beats estimates on strong product demand
Thai banks cut rate for some borrowers after push from PM
Money laundering accused who faces 22 charges to plead guilty on May 14
BNP Paribas beats estimates as lower costs offset trading slump
Japan brokerage Daiwa’s Q4 profit more than doubles as markets recover