Lenders told to firewall risks of WMPs

The China Banking Regulatory Commission said on Friday it has told banks that they must set up special departments to run wealth management products and establish separate accounting systems for those departments to prevent risk spreading from wealth management products to banks' deposit and loan businesses.

The new departments should establish separate accounting, statistical analysis and performance appraisal systems, financial institutions were informed on Thursday.

Each WMP should have its own detailed accounts that are compiled independently, the CBRC said in a statement posted on its website.