New financing channels 'pose risk to banks'

Risks from "nonstandard" financing channels such as private lending, illegal fund-raising and unregulated Internet finance activities could spill over to the banking sector, China Banking Regulatory Commission Chairman Shang Fulin said on Tuesday.

Addressing the China Banking Association in Beijing, Shang said that the CBA should promote the transformation of the banking sector's risk prevention and control models.

"The traditional passive, one-dimensional measures of risk control cannot satisfy the sector's new requirements, because domestic banks are participating in the broader trend of becoming conglomerates and developing diversified, integrated operations during a time of national economic downturn and restructuring," Shang said.