Leading group to reform China wealth management, interbank businesses

BEIJING - The China Banking Regulation Commission (CBRC) has created a leading group to reform the system's wealth management products and interbank business. The CBRC has already asked local agencies to design their own reform packages in the first quarter. The direction for the WMPs management will be a "department system organised structure", according to the CBRC.

As one of the major targets for reforms, interbank businesses will be managed under an independent department and other divisions or departments will be no longer allowed to be involved. The leading group is led by Shang Fulin, Chairman of the CBRC. Sub-groups will be set up at local levels.

Creation of the group is a response to concerns that irregularities in the development of WMPs and interbank business have pushed up financing costs, increased capital mismatches and liquidity risks, and added to systematical risks in the financial system.