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China banks ordered to tighten checks on finance products: Paper

Published on Dec 19, 2012 2:24 PM

BEIJING (REUTERS) - China's banking regulator has ordered banks to tighten checks on the sale of third-party financial products made through their branches to ward off potential risks, the Southern Metropolis Daily said on Wednesday.

The China Banking Regulatory Commission (CBRC) issued an"urgent" internal circular last Friday requiring banks to check their sales of third-party products, mainly insurance, trust products and investment funds, said the newspaper, which is based in the southern Chinese city of Guangzhou.

Banking sources contacted by Reuters confirmed that they had received a CBRC circular but would not discuss the contents.

Banks must complete investigations within 15 days and the CBRC will also conduct random checks on bank branches after they hand in self-assessment reports, the newspaper said.

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