By: Reuters | Shanghai |
Published:November 16, 2017 4:13 pm

Representational photo

China’s banking regulator has set new rules for the country’s three policy banks to help rein in risks amid a broader tightening of controls over the financial sector.

The new rules require the three banks to strengthen governance systems and to establish capital restraint mechanisms based on capital adequacy ratios, the China Banking Regulatory Commission (CBRC) said in statements late on Wednesday.

The three banks, which include the China Development Bank, the Export-Import Bank of China and the Agricultural Development Bank of China, had not been subject to special regulatory policies since their inception in the 1990s.

Beijing is trying to reduce financial risks by containing rising debt in the banking and corporate sectors, as well as looking to defuse housing bubbles for fear they could derail the economy if not…

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