SHANGHAI, March 6 China's banking regulator
asked joint-stock banks to carry out checks on liquidity risk
monitoring and management and the basis of their credit risk,
said three people with direct knowledge of the matter.
The move comes after Premier Li Keqiang said China is
erecting a "firewall" against financial risks at the annual
meeting of parliament on Sunday, with the economy dogged by
concerns over struggling firms' debts.
According to a notice seen by the three people, local
branches of the China Banking Regulatory Commission were asked
to guide lenders in the use of creditor committee systems to
properly deal with large credit risk events and effectively
safeguard their claims.
The banks should also improve their non-credit financing
risk management, create a unified creditworthiness and risk
management system as a real assessment of exposure.
Banks "should use scientific methods to assess the impact
that credit, wealth management, lending to financial
institutions, investment etc. has on liquidity," the notice
Banks should also strictly control risks in financial
products, centralise rules governing the same types of business,
the notice added.
(Reporting by Shanghai newsroom; Writing by Engen Tham and
Winni Zhou; Editing by Simon Cameron-Moore)