April 30, 2019 / 11:59 AM / in 21 days

China drafts rules requiring lenders to include more asset types in credit risk assessments

BEIJING (Reuters) - China’s banking regulator issued draft rules on Tuesday requiring lenders to include more types of assets when assessing risks, in a move to tighten oversight of banks’ asset quality as part of Beijing’s efforts to prevent financial risk.

The draft rules require Chinese lenders to recognize not only bad loans but also defaulted bonds, souring interbank assets and off-balance sheet businesses as non-performing assets, and that the lenders should set aside more capital as a buffer.

Reporting by Cheng Leng and Ryan Woo; Editing by Nick Macfie

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