China Sets up Leading Group to Reform WMPs, Interbank Businesses

January 17, 2014 Leave a comment

China Sets up Leading Group to Reform WMPs, Interbank Businesses

01-16 18:13 Caijing

The CSRC has already asked local agencies to bring with their own reform packages in the first quarter

China’s banking regulator has created a leading group to reform the system’s wealth management products and interbank business, reported by online news portal Sina, citing an authority.The China Banking Regulation Commission (CBRC) has already asked local agencies to bring with their own reform packages in the first quarter, the report said. The direction for the WMPs management will be a “department system organized structure”, it said.

As one of the major targets for reforms, interbank businesses will be managed under an independent department and other divisions or departments will be no longer allowed to be involved.

The leading group is led by Shang Fulin, chairman of the CBRC, Sina said. Sub-groups will also be set up at local levels at the helm of senior local officials, it added.

Shang had told a meeting earlier this month that reforms of the interbank business system, and WMPs are the “most urgent” on a long list of reforms this year.

There were concerns that irregularities in the development of WMPs and interbank business had pushed up financing costs, increased capital mismatches and liquidity risks, and added to systematical risks in the financial system, Shang said.

Filed under Macro Trends

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