China to promote inter-bank business and maintain financial stability amid trade war

Source:Global Times Published: 2019/6/9 22:33:40

A clerk counts money at a bank in Lianyungang, East China's Jiangsu Province. Photo: IC

China's top financial regulators have emphasized measures on maintaining financial stability and vowed more support for small and medium-sized banks and the real economy amid the escalating China-US trade war.

The People's Bank of China, the central bank, and other financial regulators said that they will continue to ensure the sound development of small and medium-sized banks, according to a statement released on Sunday describing a recent meeting held by the Financial Stability and Development Committee of the State Council, China's cabinet.

"Small- and medium-sized banks play an important role in supporting the real economy. Active lending could stimulate the market's vitality to offset the negative impact of the China-US trade war," Dong Dengxin, a Wuhan-based finance expert, told the Global Times on Sunday.

The central bank said at the meeting it will use a variety of monetary policy tools to maintain reasonable liquidity in the financial market and provide liquidity support to small and medium-sized banks. 

"The risks of small and medium-sized banks are completely controllable," the spokesperson of the China Banking and Insurance Regulatory Commission told the domestic news site on Sunday.

A few small and medium-sized banks did not release annual reports on time, which were isolated cases, because some banks were undergoing equity restructuring, while others were preparing to go public, the spokesperson said.

Large commercial banks at the meeting also noted that they will continue to strengthen inter-bank business with small and medium-sized banks and maintain market stability.


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