Banks, institutions face PBOC financial inspection
Central bank to focus on the quality of financial information as part of the government's effort to establish unified statistical management
The People’s Bank of China said that it has launched a six-month financial statistics inspection from May to October, covering almost all banks and non-bank financial institutions, Securities Daily reported.
The focus of the inspection by the central bank is on the quality of financial information which is part of the central government’s effort to call for the establishment of a unified statistical management and operational mechanism for the financial industry.
In 2015, due to the fact that the regulatory authorities could not fully grasp the real situation of the off-market capital allocation in the stock market, eight-months of stock market turmoil took place, said a regulator from Beijing. This event directly led to the acceleration of the construction of a national financial database.
However, an insider from the central bank thinks it is difficult to collect information as there is a lack of unified data standards or a data-sharing mechanism, and the technical means to collect data are way too simple. Also, there is a lack of statistical monitoring on cross-border financial activities and financial holding companies.