RETAIL BANKING | Staff Reporter, China

China tightens watch over financial activities on internet platforms

It would push large banks to extend risk management tools to smaller peers.

The China Banking and Insurance Regulatory Commission (CBIRC) will strengthen supervision over financial activities by banks and insurers with internet platforms, reports Reuters.

There needs to be closer inspection of the development of “financial cooperation activities” between banks and insurers, and internet platforms, CBIRC said.

It will also urge large banks to provide risk management tools and models to smaller banks, and to work to eliminate financial risks and keep China’s macro leverage ratio stable.

The regulator has already warned consumers to guard against borrowing spurred by internet finance platforms that hide the real costs of such debt. In addition, it has banned commercial lenders from using third-party internet platforms to sell deposit products, including those relating to fixed-term deposits.

Here’s more from Reuters.

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