21 August 2019

Banking regulators slam FT over ‘turf war’ reports

The People’s Bank of China (PBOC) and the China Banking Regulatory Commission (CBRC) have condemned two articles on the Financial Times, which said a friction between the two regulators is hindering the country’s financial reform and dampening market confidence, according to a joint announcement published at the central bank’s website.

“The two stories seriously distorted the truth and badly hurt the reputations of the PBOC and the CBRC,” the announcement said.

“Under the leadership of the State Council, the PBOC and the CBRC always coordinate with each other and work together to promote reform, development and stabilization in China’s financial sector,” it said.

The FT reports alleged that the relationship between the two financial regulators was getting worse, exacerbating a liquidity crisis that threatened the interbank market last June.

The PBOC refused to inject new funds into the market, which led to a surge in interbank lending rates, as it was disappointed with the CBRC’s failure to curb the expansion of shadow banking activities in the country, according to the FT reports.

– Contact HKEJ at [email protected]




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