CBRC to close financial loopholes

The China Banking Regulatory Commission will coordinate with the People's Bank of China, the nation's central bank, to form new regulations on financial institutions' asset management businesses this year, according to an official from the commission.

Li Wenhong, director of the CBRC's banking innovation supervision department, said, "After the regulations are formally launched, we will release detailed rules governing commercial banks' wealth management business."

During the last few years, a large amount of emerging business at commercial banks has capitalized on legal loopholes to circumvent regulation, with such regulatory arbitrage causing huge potential risks, said Zeng Gang, director of banking research at the Institute of Finance and Banking of the Chinese Academy of Social Sciences.