Business / Markets

China supports FSB in reducing financial risks

(Xinhua) Updated: 2014-09-22 10:07

BEIJING - China supports the efforts of the Financial Stability Board (FSB) in improving capital requirement of global-systematically important banks (G-SIBs) to reduce risks, China's central bank governor has said.

Zhou Xiaochuan, head of the People's Bank of China, made the remarks in the Australian city of Cairns as the world's finance ministers and central bank chiefs gathered to discuss economic and financial systems during the weekend, the bank's website said on Sunday.

He also called for flexible enforcement, saying situations of banking development in different countries should be taken into consideration.

The FSB started to publish lists of G-SIBs in 2010 and improve their capital requirement to prevent global financial crisis. There are 29 G-SIBs worldwide, including two in China, which are the Bank of China and the Industrial and Commercial Bank of China.

Addressing the meeting, Zhou expected countries to accelerate reforms on financial derivatives and start cooperation on supervision. He called for further classification of shadow banking for more targeted measures.

The meeting reviewed progress of reforms on financial supervision, set higher capital adequacy ratio for G-SIBs and asked the FSB to finish core factors of supervision frame over shadow banking before the summit in Brisbane.

China supports FSB in reducing financial risks

China supports FSB in reducing financial risks

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