China issues fresh curbs on shadow banking

Tags: China, News
China's cabinet has issued new rules to strengthen regulation of the shadow-bank lending that has helped fuel an explosion in debt levels since 2008, in the latest effort to address growing financial risks, sources told Reuters on Monday.

The wide-ranging new rules issued by the State Council, China's cabinet, say that shadow banking is a "beneficial" and "inevitable" consequence of financial development and provides an official definition of the term, according to a copy obtained by Reuters.

The regulations contain new restrictions on banks' cooperation with trust companies, securities brokerages and other intermediaries with whom banks have cooperated in order to carry out off-balance sheet business.

Authorities also attempt to address the problem of banks' exploiting regulatory loopholes by clarifying the responsibilities of various regulators, the People's Bank of China, the China Banking Regulatory Commission, and the China Securities Regulatory Commission.

The rules also address internet finance, micro-lending, and informal lending by friends and family members.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Subdued crude oil prices offer an excellent opportunity for India

    In Mid-June, when most of us probably first heard of the ISIS posing a serious threat to stability in West Asia, international crude oil price suddenl

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Why UGC must focus on quality

In a vast country like India, where there are pressures ...

Rajgopal Nidamboor

The sum total of our conscious experience

All of us epitomise a multiplicity of conscious thoughts. This ...

Gautam Gupta

Don’t let success kill the essence of the concept

In 1999 when my mother started her own label, we ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture