After releasing several rules to eliminate risk issues and other prominent problems in China’s banking system, the China Banking Regulatory Commission (CBRC) says its regulatory crackdown aims to control banking risks and secure China’s financial markets.
Xiao Yuanqi, director general of the CBRC’s prudential regulation bureau, said the regulations were not a limit for banking businesses but a method to enhance services.
Xiao also said that the supervision mechanism did not reduce banks’ businesses. Investment in several financial products had even increased by the end of April. Xiao said that the key point was to choose a proper implementation way.
The CBRC is allowing banks up to six months to implement the reforms. Experts say the buffer period is beneficial to making a natural transition to the new regulations.