Central banker: China to strengthen oversight of 'regulatory arbitrage'

Updated 2017-08-21 09:30:17 CGTN

China will strengthen oversight of arbitrage that takes advantage of uncoordinated regulations and increase penalties to try to prevent structural risks from getting out of control, a senior central banker said.

Yin Yong, vice governor of the People's Bank of China, told a conference in Beijing on Saturday six forms of arbitrage were problematic.

He said they involved differing maturities, credit conditions, investment liquidity, exchange rates, capital and information.

"These six forms of malicious regulatory arbitrage, which circumvent the regulatory system and its arrangements, and take advantage of the incompleteness of regulation, could result in risks to the entire financial system getting out of control," he said.

Chinese financial regulators have adopted a slew of "de-risking" measures this year and have ramped up efforts to unearth hidden problems that could become systemic threats.

Yin called for clear rules and procedures on who qualifies to make certain investments and said information disclosure procedures should be improved while risk management is made easier.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58September 23 2018 07:08:04

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 12:16September 23 2018 07:08:04

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18September 23 2018 07:08:04

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.

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