China Imposes New Rules On Policy Banks To Curb Risks
Mohammad Ali (@ChaudhryMAli88) Published November 16, 2017 | 10:15 AM
China has set new rules to curb risks at its policy banks, stepping up oversight of the country's financial system as Beijing looks to address a ballooning debt crisis that threatens the world's number two economy
Beijing, (UrduPoint / Pakistan Point News - 16th Nov, 2017 ) :China has set new rules to curb risks at its policy banks, stepping up oversight of the country's financial system as Beijing looks to address a ballooning debt crisis that threatens the world's number two economy.
For the first time, the China Banking Regulatory Commission (CBRC) will impose specific rules designed in part to reduce financial risk at three banks tasked with funding Beijing's pet projects and supporting Chinese companies abroad.
The rules, released on Wednesday, include setting up mechanisms to make sure they do not lend more cash than they can afford as well as corporate governance provisions. The new rules come as Beijing copes with ballooning debt that some analysts say threatens the stability of the Chinese economy.
The three banks, China Development Bank, Export-Import Bank of China and the Agricultural Development Bank of China, had 25 trillion Yuan ($3.
8 trillion) in assets at the end of September, according to state news agency Xinhua.
That makes them roughly as large as the country's biggest state-owned bank, the Industrial and Commercial Bank of China. The special regulations will "strengthen risk control" and ensure the policy banks' "safe and stable" operations, an unnamed CBRC spokesman said on the commission's website, noting the lenders had consulted commercial banking regulations since their establishment in 1994.
The policy banks figure prominently in President Xi Jinping's signature One Belt, One Road project that China says will invest $1 trillion in Asian and European countries to revive ancient trade routes with a massive network of rail and maritime links.
Some of the projects have faced headwinds and critics say the initiative is weighing down some countries with debt they will struggle to repay.
Related Topics
Recent Stories
3 Gawadar attack victims funeral offered
Mbappe says he will leave PSG at end of season
Usmani felicitates Sardar Saleem on taking oath as Punjab Governor
DC for provision of facilities to people in Lasbela
Solar storm could bring auroras, power and telecoms disruptions
Court grants interim bail to PTI leaders
Ulema, Mashaykh call for political accountability, collaboration for Pakistan's ..
SHRC asks NADRA to issue CNICs to transgender as per law
Flash floods kill 50 in one day in north Afghanistan
CDA chief expresses commitment to promoting modern-day technologies
By wide margin, UN General Assembly votes to back Palestinian bid for membership ..
Musadik slams PTI's political approach as provocative
More Stories From Business
-
Mongolian envoy for boosting bilateral economic ties
11 hours ago -
SBP provides practicable foundation for elimination of Riba: chief manager
12 hours ago -
Rupee gains 08 paisa against US dollar
12 hours ago -
Pakistan, Korea sign Aide-Mémoire for Enhanced Development Cooperation 2024-2026
12 hours ago -
European stock markets hit record highs on rate cut hopes
12 hours ago -
Steps being taken for uplift of industries, socioeconomic conditions: SACM
12 hours ago
-
Meezan Bank, Roche Pakistan join forces to combat breast cancer
13 hours ago -
Salim calls for utilizing Turkish expertise in PIA's privatization
14 hours ago -
PSX stays bullish, gains 427 more points
14 hours ago -
Pakistan committed to promote green investment: Aurangzeb
14 hours ago -
Short-term inflation eases by 1.39 percent
15 hours ago -
Gold rates increase by Rs.4,600 to Rs 243,800 per tola
16 hours ago