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Apply unified standards to wealth management products, regulator says

Updated: 2013-01-30 07:42
By Wang Xiaotian ( China Daily)

Unified standards and concerted regulation should be applied to wealth management products sold by non-banking institutions, otherwise risks might match those generated by banks and cause a shock this year, a senior banking regulator warned on Tuesday.

"Not only banks, but insurance and securities companies are also able to sell wealth management products, which raises great challenges for financial regulation," said Yan Qingmin, assistant chairman of the China Banking Regulatory Commission.

Wealth management products are similar to time deposits, but the interest rates can be set freely by financial institutions, and many of the assets and liabilities stay off the balance sheets, adding to concerns over fast-expanding shadow banking activities in recent years.

Apply unified standards to wealth management products, regulator says

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