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China Regulates Commercial Banks' Intermediate Businesses
The People's Bank of China, China's central bank, issued a provisional regulation on commercial banks' intermediate businesses on Wednesday.
The 29-article regulation provides clear definitions for intermediate businesses, the business scope, market access systems, ratification procedures and charging standards.
A spokesman for the central bank said the enactment of the regulation aims to promote China's commercial banks' business innovations, improve their services, increase their competitiveness and effectively prevent financial risks.
Intermediate businesses refer to businesses that do not constitute scheduled assets and liabilities and produce non- interest income for banks, which involve settlement, warranty, acceptance, trading and other intermediate businesses.
The regulation clarifies that, with the central bank's ratification, commercial banks can open financial derivative businesses, agency security business, as well as investment bank businesses such as trusting of investment funds, information consultation and financial advisory.
The regulation divides the access system into two parts: the ratification system and filing system, according to different degrees of risks.
The regulation also clarifies the charging standards for intermediate businesses.
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