Central bank calls for full enforcement of financial regulations
PBC boss says agency will focus on prevention of liquidity risk, shadow banking risk, abnormal market volatility and cross-border capital flow
Zhou Xiaochuan, chief of the People’s Bank of China, published an article calling for the full coverage of financial regulations and the avoidance of any possible gaps, Yicai.com reported.
All businesses engaged in the financial sector must hold a licence, and all financial service must be included in the supervision, Zhou emphasized.
The central bank will focus on the prevention of liquidity risk, banks’ non-performing asset risk, shadow banking risk, as well as the surveillance of abnormal capital market volatility and cross-border capital flow.
Zhou also addressed other new targets of the central bank after the 19th National Congress of the Communist Party of China, including expanding the scale of bond financing and enriching the variety of bond products.
The central bank also supports the adoption of direct financing, especially equity financing, aiming to develop multi-level, diversified and complementary equity financing channels.