CBRC Focused on Avoiding Systemic Financial Risk

Let credit flow, tighten, deal with the fallout. Rinse and repeat.
iFeng: 地方监管布局:严查表外业务 防范交叉金融业务风险
ccording to the 21st Century Business Herald reporter interviewed that more than 2016 the main table of the banking business growth rates are as high as 50% of the Shanghai banking balance sheet balance of business or even 1.8 times the total assets.

Intuitively, over the past two years the financial market division often became the bank's "most profitable" department, the position in the bank gradually increased. In addition, the wealth management business, especially with the industry financial management, also in 2016 to become the focus of the whole financial market.

...Off-balance sheet business risk has undoubtedly aroused great concern from regulators and institutions. 21st Century Business Herald Reporter learned from multiple channels, more than the CBRC will be off-balance-sheet business checks as the 2017 focus of the work.

...In addition, the 21st century economic reporter was informed that in 2016 Jiangsu banking assets custody and issuance of non-guaranteed financial management scale (table) year on year growth of about 50%. Chongqing's foreign-related business scale also increased by over 50%, higher than the loan growth rate of 40 percentage points.

Particularly noteworthy indicators are the ratio of off-balance sheet assets to total assets of banks. As of the end of 2016, the proportion of off-balance sheet assets and gross assets (total assets) in Chongqing's banking sector has exceeded 70%, while the scale of Shanghai's off-balance sheet business is more than 180%.

...According to the 21st century economic report reporter learned that in the past two months, there are brokerage collection management products due to the allocation of more non-standard assets, liquidity management problems, failed to pay the principal and interest in full and on time. But in general, will be resolved by the same industry financial institutions, the current point of view did not produce a chain reaction.

...21st century economic reporter was informed that in January this year, more than banking regulatory bureau held in 2017 working meeting were stressed on the cross-financial business to penetrate the principle of the funds from the banking system of various types of business, according to Substantive emphasis on the principle of form, into the comprehensive risk management.

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