Why banks should prepare for tighter regulation
May 04, 2012 | BY
clpstaff &clp articlesNew liquidity measures could force banks to adjust their asset-ability structures and strictly manage funding sources and balance sheets
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The China Banking Regulatory Commission (CBRC) is looking to introduce regulatory parameters governing liquidity risks in the banking sector. It will issue liquidity risk rules, which would regulate bank deposits and loans more strictly.
“Banks with larger retail deposit bases will probably be in a better position compared to banks that have traditionally relied more on wholesale funding,” said Jack Wang of King & Wood Mallesons.