China supports financial innovations in banking institutions

Financial innovations in banking institutions have been vigorously supported and guided by the government, the country's chief banking regulator said in Beijing on Monday.

Promoting financial innovations has always been regarded as an important leverage for sound supervision by the China Banking Regulatory Commission (CBRC), said Chairman Liu Mingkang of the CBRC at a press conference held by the Information Office of the State Council.

The CBRC promulgated the Guidelines on Banks' Lending to Small Enterprises to promote institutional and product innovation with a view to encouraging, promoting, directing and coordinating banks' financial services to small businesses, he said.

The CBRC issued the Provisional Rules on Commercial Banks' Wealth Management Business so as to guide and standardize such businesses to provide the consumers with more diversified investment instruments, he said.

In order to advance the process of the securitization of credit assets, the CBRC has promulgated the Administrative Rules for Pilot Securitization of Credit Assets without delay, he said.

For the purpose of regulating and facilitating financial innovations in banking institutions, a new department in charge of supervisory cooperation for banking business innovation was established by the CBRC, so as to set out unified prudent supervisory standards and manuals for banking business innovations and thus better guide and promote the development of the business innovation activities of the Chinese banking industry, he said.

Source: Xinhua