Regulator warns banks on pooling WMPs

Not all banks have complied with the 2011 China Banking Regulatory Commission (CBRC) policy requiring financial institutions to stop pooling money from different wealth management products (WMP) to invest and repay old loans, Caixin reported. Officials from CBRC said that the collective management of the banks make it near impossible to assess the performance of each WMP as gains and losses are shared across the board and, in some cases, the size of the capital pool has grown since the rules were put in place. A three-month deadline for banks to get in line with requirement was announced in late January by CBRC official Wang Yanyou.