China strengthens management over financial asset risks

BEIJING -- Chinese financial authorities unveiled new measures Saturday to strengthen management over financial asset risks at commercial banks.

The document, jointly released by the China Banking and Insurance Regulatory Commission (CBIRC) and the People's Bank of China, specifies the definition of five risk levels and demands commercial banks classify the risks of all financial assets that bear credit risks instead of only loans.

It also clarifies rules concerning the number of days overdue and risk classification and asks commercial banks to improve their risk classification management structure.

The measures, which will become effective on July 1, will help the banking sector forestall credit risks and improve its capabilities in serving the real economy, according to the CBIRC.