Press Room

SCIO briefing on performance of banking and insurance sectors

China.org.cn | January 15, 2020

Market News International:

I have two questions. We recently learned that the CBIRC mentioned at a meeting that it will cooperate with local governments to resolve hidden debt risks. How will this be implemented? Another question is that since the second half of last year, commercial banks have increased loans to help local governments refinance their debts. Is there any relevant information and data to share in this area? Thank you.

Xiao Yuanqi:

Thanks for your question. Your question is one of the topics mentioned in this work meeting. Regarding the hidden debts of local governments, the CBIRC mainly guides banks and insurers to deal with them in accordance with existing regulations and policies. On the one hand, we must "open the door" and encourage these institutions to actively participate in some projects with good performance and cash flow. We encourage the issuance of local government bonds, which can be sold in commercial banks so that local companies and individuals can purchase them at bank counters. For the special bonds issued by local governments, banks and insurance institutions are the main investors. On the other hand, we must prevent relevant risks. Especially for hidden debts that violate regulations, banks and insurers must follow their own risk management process to strictly control risks in accordance with existing regulations and policies. The data you just mentioned will be provided to you after the meeting. Thank you.

<  1  2  3  4  5  6  7  8  9  10  11  >