Financial products in Chinese banks stand at US$1.6 trillion

Indicates growing innovation among Chinese banks.

The China Banking Regulatory Commission, the financial sector regulator, said this compares to the US$81 billion in 2007. It noted that pressure from competitors, such as insurance, securities and trust funds has prompted banks to intensify innovation.

Expansion-sustained growth can no longer guarantee success since banks have ceded their power of setting interest rates to the market. As such, banks need to tailor their services and streamline their management of assets and liabilities.

CBRC called for banks to guard against over-expansion in innovation, warning that any kind of new financial products come with certain risks.