China makes a new move to strengthen the regulation of large banks. On Wednesday, the China Banking Regulatory Commission, or CBRC, announced that the country’s largest banks need to disclose 12 indicators concerning systematic risks, such as size, interconnectedness, and key on-and-off-balance-sheet data.
The new guidance is based on the requirements of the Financial Stability Board which was established by the G20 in 2011.
The FSB defines that banks with assets above 1.6 trillion yuan, or 264 billion U.S. dollars, are systemically important ones. The Industrial and Commercial Bank of China and Bank of China were added to this list last November. The CBRC said that the banks should disclose the indicators either on their websites or financial statements within four months before the end of their accounting year, and no later than the end of July each year. The new regulations will come into effect in February.
Source: CCTV
