China imposes pre-checks on large bank transactions

The PBOC hopes to keep systematic risks at bay.

The People’s Bank of China (PBOC) has kicked off a programme that would require retail and business clients to pre-report any large withdrawals or deposits, reports Bloomberg.

The programme was piloted in Hebei Province and will expand to Zhejiang and Shenzhen in October. It hopes to strengthen monitoring of “unreasonable demands of large amounts of cash” to keep systematic risks in check, the PBOC said.

The plan will require businesses to provide information on transactions exceeding $71,000 (CNY500,000). For individuals, the threshold spans from $14,266 (CNY100,000) to $43,000 (CNY300,000) depending on the region.

Chinese banks are battling a surge in bad debt with the economy set to expand at its slowest in four decades. Authorities stepped in last month to stop bank runs at two lenders in Hebei and Shanxi, in addition to the bailout of several embattled banks last year.

Here’s more from Bloomberg.

Also Read

Digitalisation amplifies data and liquidity risks

Vietnam’s PVComBank launches mobile banking services on AWS

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit