China banks urged to note risks when making new products

BEIJING Mon Sep 16, 2013 1:32am EDT

BEIJING (Reuters) - China's banking watchdog has told banks to be cautious in financial product innovation to head off possible risks in the sector, adding that it would tighten controls on banks' leverage level.

"A lesson from the global financial crisis tells us the overlapping of different businesses may intensify hidden risks," Shang Fulin, the chairman of the China Banking Regulatory Commission, said in a statement on the commission's website.

(Reporting by China Economics Team)