CBIRC to curb risks in financial industry

CHINA’S banking and insurance regulator has vowed to step up efforts in curbing financial risks and deepening reform and opening-up in the sectors.

China’s economy has maintained steady growth with good momentum this year, yet new challenges remain given potential financial risks and existing illegal financial activities, according to a meeting of the China Banking and Insurance Regulatory Commission held on Wednesday.

The CBIRC stressed that it would strengthen efforts in preventing Internet financial risks and unswervingly curb property bubbles.

Since the beginning of the year, the CBIRC has enhanced its supervision on Internet financial risks, especially Internet loans. A total of 1,483 banks and insurance companies were fined 1.64 billion yuan (US$241 million) from January to July.

The CBIRC also highlighted the importance of strengthening financial services to better serve the real economy while constraining financial risks through deepening supplyside structural reform.

By the end of July, loans issued from banking and financial institutions grew 12.4 percent year on year. Loans in the infrastructure sector gained 9.9 percent while agriculture-related loans rose 7.2 percent year on year.

It was decided at the meeting to deepen reform and opening-up in the banking and insurance sectors and substantially widen market access.

Banks and insurance companies are encouraged to explore diversified and sustainable loans for countries along the Belt and Road.