Banking Regulators to Maintain Focus on Macro-leverage and Online Financial Activity: CASS Report


Chinese banking regulators will continue to maintain their focus on keeping macro-leverage levels steady and maintaining pressure on the financial activities of Internet platforms, according to a new report from two of China’s top think tanks.

The “Financial Regulatory Blue Paper: China Financial Regulatory Report (2021)” (金融监管蓝皮书:中国金融监管报告(2021)) was jointly released by the Chinese Academy of Social Sciences (CASS) and the National Institution for Finance & Development (NIFD) on 8 July.

According to the report China’s banking regulators will “continue to drive overall basic themes amidst stability,” with an ongoing focus on:

  • The prevention and dissolution of systemic financial risk.
  • The maintenance of the basic stability of macro-leverage ratios.
  • The supplementation of systemic shortcomings.
  • Disposal of non-performing assets.
  • Ongoing rectification of shadow banking.
  • Strengthening of the financial regulation of online platforms.

The report also foresees the further use of “reform and opening to expedite the high-quality development of the financial sector,” as well as an emphasis on improvements to the corporate governance of banks.