Chinese banking regulator tightens collateral management

Updated 2017-05-09 09:31:27 Xinhua

China's top banking regulator has told commercial banks to strengthen management over loan collateral to contain financial risks.

Aware of some management irregularities in some commercial banks, the China Banking Regulatory Commission (CBRC) made specific demands concerning classification, evaluation and collateral rate determination in a guideline released Monday.

Commercial banks should make detailed categorization of collateral, while the catalogue of acceptable collaterals should be updated at least once a year, according to the CBRC.

The regulator also ordered banks to revalue collateral at least once a year, and the ceiling of collateral rates should be adjusted in accordance with business cycles, risk profiles and market condition.

Zeng Gang, an economist with the Chinese Academy of Social Sciences, said better management of quality and authenticity of collateral would help reduce losses and boost banks' ability to handle bad assets.

In addition, the CBRC asked commercial banks to maintain a balance between collateral loans and credit loans to provide better financial services to small and micro enterprises.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58March 22 2018 22:09:08

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16March 22 2018 22:09:08

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18March 22 2018 22:09:08

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords