The China Banking Regulatory Commission has launched new measures to contain risk exposure for the country’s three policy banks.
The measures which come into effect at the start of 2018 require that the China Development Bank, the Export-Import Bank of China and the Agricultural Development Bank of China improve their governance systems and establish capital constraints based on capital adequacy ratios.
CBRC said in an official statement that the new measures were needed to strengthen supervision of the policy banks, and as well as prevent the onset of systemic financial risk.
CBRC official Zhou Minyuan said to the Xinhua News Agency that existing rules were inadequate for risk control given the expanding scope of China’s policy banks.
According to Xinhua the total assets of China’s three policy banks was 25.12 trillion yuan ($3.79 trillion) as of the end of September, with aggregate loans of 17.41 trillion yuan.