China’s top banking regulator will guide banks to reduce unnecessary charges worth over 44 billion yuan ($6.5 billion) for their clients, and take new measures to prevent and control risks in the banking sector.
The China Banking Regulatory Commission (CBRC) will promote inclusive finance to play a bigger role in supporting economic growth, according to a statement released after its mid-year work meeting concluded on July 29.
As of the end of June, commercial banks’ capital adequacy ratio was 13.2 percent, and the liquidity coverage ratio was 124.4 percent, and non-performing loan provision coverage was 172.3 percent, the statement noted.
The country’s banking sector’s risks are generally manageable but more measures should be taken to deal with risks brought by cross-market and cross-sector products and other emerging businesses, the statement said.
New measures will be taken to guard against risks such as keeping close supervision on highly risky institutions and strengthening internal management and risk control.
The CBRC will also introduce private investment in the banking sector in an orderly manner and keep opening up the industry.
A total of 18 new or amended regulation frameworks are expected to be rolled out this year to fill in regulation gaps, according to the statement.