LINE

Text:AAAPrint
Economy

China limits banks' risk exposure

1
2018-05-05 14:54Xinhua Editor: Li Yan ECNS App Download

China's banking regulator has limited commercial bank's risk exposure to avoid systemic risk.

A commercial bank's risk exposure to an interbank client shall not exceed 25 percent of its tier one capital, according to a document released online Friday by China Banking and Insurance Regulatory Commission (CBIRC).

The rule states that a bank's total risk exposure to a single non-bank client shall not exceed 15 percent of its tier one capital, while reaffirming that a bank's outstanding loans to such a client cannot surpass 10 percent of its net capital.

The rule, which will take effect from July 1, allows a three-year transition period for banks to reduce risk exposure to interbank clients until reaching compliance.

The new rule will oblige banks to reduce reliance on interbank business and channel more capital into the real economy.

Prevention of financial risk is key for China in what policymakers called the "three tough battles" -- controlling risk, reducing poverty, and tackling pollution.

  

Related news

MorePhoto

Most popular in 24h

MoreTop news

MoreVideo

News
Politics
Business
Society
Culture
Military
Sci-tech
Entertainment
Sports
Odd
Features
Biz
Economy
Travel
Travel News
Travel Types
Events
Food
Hotel
Bar & Club
Architecture
Gallery
Photo
CNS Photo
Video
Video
Learning Chinese
Learn About China
Social Chinese
Business Chinese
Buzz Words
Bilingual
Resources
ECNS Wire
Special Coverage
Infographics
Voices
LINE
Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
Copyright ©1999-2018 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.