China to step up oversight on banks against financial risk

Long-term efforts are needed to bring the banking sector under control.

The China Banking Regulatory Commission (CBRC) released a statement revealing that it will increase oversight in the banking sector in 2018 to reduce financial risk, Reuters reports.

"Banking shareholder management, corporate governance and risk control mechanisms are still relatively weak, and root causes creating market chaos have not fundamentally changed," CBRC said. "Bringing the banking sector under control will be long-term, arduous, and complex."

Reuters said that CRBC will prioritise strengthened risk control in shadow banking, interbank activities, financial products, and off-balance sheet business. It plans to lay out stricter punishments against violations in corporate governance, property loans, and non-performing asset disposal.