Pedestrians walk past the People’s Bank of China (PBOC) headquarters in Beijing, China. (Photographer: Qilai Shen/Bloomberg)

PBOC Calls for Tougher Oversight of Financial Holding Companies

(Bloomberg) -- China’s central bank said oversight of the nation’s financial holding companies needs to be stepped up due to an increasing number of risks to their operations, deputy governor Zhu Hexin was reported as saying.

Potential measures include implementing stricter controls on market access and closer supervision of sources of funding and capital-adequacy ratios, while a “firewall" system should be set up to better regulate the industry, Zhu was cited by the China Times newspaper as saying in a speech in Beijing.

The so-called financial holding firms are those that straddle at least two areas of the financial industry. The PBOC has selected five of the firms for a pilot program into tighter regulation and aims to introduce trial measures in the first half of next year, local media reported this month.

©2018 Bloomberg L.P.