China’s top banking industry regulator is mulling stricter rules on the burgeoning business of cash-management products (CMPs) run by commercial banks, tightening its grip on the $600 billion market, reported Caixin.
The China Banking and Insurance Regulatory Commission (CBIRC) is collecting feedback from major commercial banks on a set of draft rules for CMPs issued in late December. The rules would impose tougher requirements for CMPs’ pricing, duration and investment and would require banks to comply by the end of this year.
It is the latest step by regulators to tame financial risks amid an economic slowdown and is part of broader efforts to regulate the freewheelingasset managementmarket.
The regulator is determined to put CMPs under stricter rules that are equivalent to those for money market funds, although lenders are pushing back for leniency, said Caixin sources.