China Expands Bank Disclosure to Tackle Bad Debts

China’s major banks have been asked to publish data on 12 key indicators, including off balance sheet assets, to enhance their transparency.

Banks with total assets of 1.6 trillion yuan ($264bn; £160bn) will need to publish the data within four months of the end of each financial year.

China said the move was in line with rules published by the Basel Committee on international banking regulation.

There have been growing concerns over rising bad debts at Chinese lenders.

The data that banks will be required to disclose also includes cross-border assets and liabilities, the China Banking Regulatory Commission (CBRC) said.

According to data compiled by the Bloomberg news agency, the new requirements will apply to at least 12 of the 19 publicly listed Chinese banks.

via BBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza