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Interbank deals under CBRC microscope

China
Uncategorized
Legal

(25 April 2013 – China) The China Banking Regulatory Commission (CBRC) has ordered banks to provide more detail on interbank deals.

From 5 May, the CBRC is set to require banks to provide more detailed reports on loans to other financial institutions through the interbank market.

CBRC will require all domestic policy banks, state-owned banks and joint-stock banks to report their risk exposure from interbank loans made to other members of the financial industry, such as other banks, brokerages and investment funds.

Every bank will also have to identify its five largest borrowers.

It is widely known the unregulated channels may be used to pour funds into speculative real estate.

Speculative real estate saw a huge rise in investment in February, and CBRC believes shadowy financing channels are being used to drive this growth.

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