The China Banking Regulatory Commission says it will toughen regulation of the country’s banks in 2018 as part of efforts to stymie systemic financial risk.
In an official statement issued on Saturday CBRC outlined its regulatory priorities for the year, chief amongst them the scrutiny of the shadow banking sector and protection of consumers.
As part of its ongoing crackdown on the shadow banking sector, CBRC said it will step up risk controls in relation to interbank lending, off-balance sheet activity and financial products.
CBRC also said it would put greater pressure on regulatory infractions by bankers, do more to channel funds to the real economy, and compel banks to prioritise their primary business activities.
CBRC’s statement comes after the launch of a “regulatory storm” against the banking sector nearly a year ago, just after current chief Guo Shuqing took office in February 2017.
2017 was a fraught year for Chinese finance, with regulators cracking down on malfeasance across the board, and the People’s Bank of China leading a heavy handed deleveraging campaign aimed at containing systemic financial risk.