BEIJING, May 9 (Reuters) - China’s banking and insurance regulator on Wednesday issued new regulations on banks’ inter-provincial bill business, as part of its widening clampdown on risks in the financial system.
Banks should restrict inter-provincial paper-based bill transactions with larger risks, according to a document on the regulator’s website.
The regulator also asked banks to conduct bill business based on electronic transaction, and to phase out paper-basaed bill transactions six months after publication of the regulation.
Financial institutions need to strengthen risk control in key areas, it added.
Reporting by Beijing Monitoring Desk; Editing by Richard Borsuk