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China central bank issues draft guidelines on evaluation of systemically important banks

FILE PHOTO: Headquarters of the People's Bank of China (PBOC), the central bank, is pictured in Beijing, China September 28, 2018. REUTERS/Jason Lee/File Photo

BEIJING (Reuters) - China’s central bank issued a draft guidelines on Tuesday on the evaluation of the country’s systemically important banks.

The guidelines will help regulators to identify lenders that are crucial to China’s financial system, and thus reduce and fend off major financial risks, the People’s Bank of China (PBOC) said on its official website.

A list of systemically important banks will be jointly reviewed and announced by the PBOC and the China Banking and Insurance Regulatory Commission (CBIRC) once a year, according to the statement.

Yet the draft didn’t elaborate on the detailed list of banks nor specific requirements they need to meet with.

Reporting by Cheng Leng, Vincent Lee and Beijing Monitoring Desk