CBIRC Issues Risk Warning to Chinese Banks on Excessive Maturity Mismatches


China’s banking authority has warned domestic lenders of risk in relation to excessive mismatching of the maturities of assets and liabilities on their balance sheets.

On 26 March the China Banking and Insurance Regulatory Commission (BIRC) issued a notice concerning the release of the “Administrative Measures for the Quality of Commercial Bank Liabilities” (商业银行负债质量管理办法 ).

The Notice said that Chinese banks should “raise the rationality of the allocation of assets and liabilities, and use multiple methods to increase the level of correspondence between assets and liabilities when it comes to areas including maturities, currencies, interest rates and exchange rates, and prevent excessive mismatches from triggering risk.”