By Karry Lai, Asia reporter
China Banking Regulatory Commission (CBRC) chairman Guo
Shuqing and People’s Bank of China governor Zhou
Xiaochuan warned of further tightening of financial regulation
at the 19th National Congress of the Communist Party
of China last week. Deepening reforms and safeguards against
cross-market financial risks can also be expected.
Guo’s remarks centered around
China’s commitment through governance and
enforcement to ensure financial market stability, rein in
non-performing loan (NPL) exposure and target local government
and corporate debt, shadow banking and real estate bubbles.
"Banks’ wealth management services and
interbank businesses will be the main focus areas of
regulators," said Guo. While the overall NPL ratio for banks is
1.9% - lower than in many...