China's banking and insurance regulator issued draft rules on Friday to step up oversight of the $3 trillion trust industry, and reduce financial risks in the shadow banking sector.
The China Banking and Insurance Regulatory Commission said trust companies should divide their businesses into three categories - asset management, asset servicing and charitable trusts - to help them align with international standards and to encourage them to return to their original business.
The once-freewheeling trust industry, at the heart of a vast shadow banking sector, for years helped channel funds into companies that struggle to obtain bank credit via opaque structures. Authorities have stepped supervision on the industry and pushed trust business towards greater transparency. Trust companies should no longer provide "channeling" services to sidestep regulatory requirements, or use non-standard capital pools in any form, the CBIRC said in the draft rules published on its website.
Trust firms have provided "channels" for individuals, companies and banks to invest money into high-yield risky products. Such business has been targeted in Beijing's crackdown on shadow banking as the opaque product structure made it hard for regulators to track risks.In October, some trust companies received notices from regulators to report their operations based on the proposed new classification rules, the 21st Century Business Herald reported.
Reporting by Ziyi Tang, Ryan Woo and Beijing Newsroom; Editing by Christian Schmollinger & Simon Cameron-Moore
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
D.C.-area forecast: Sunny and warmer through Friday before a rainy New Year’s EveHigh temperatures could near 60 Friday and over the weekend.
Consulte Mais informação »
Warm and Clear for Thursday; Rain Friday - Alabama NewsExpect a spring-like day today before rain enters the forecast before our holiday weekend. alwx
Consulte Mais informação »
Southwest Airlines hopes to restore its full flight schedule by FridayAfter taking desperate measures to try to stabilize its broken flight operations, Southwest Airlines could have its full schedule restored by Friday in time...
Consulte Mais informação »
Southwest says it expects normal operations to resume FridaySouthwest Airlines is still trying to extract itself from sustained scheduling chaos and cancelled another 2,350 flights after a winter storm overwhelmed its operations days ago.
Consulte Mais informação »
Southwest Airlines Resumes Ticket Sales, Prepares to Restart Regular Flights FridaySouthwest Airlines is gearing up to restart regular flights on Friday after putting crew schedules back together manually. 'I’m accountable for this,' Southwest CEO Bob Jordan said.
Consulte Mais informação »