China Issues Rules Governing Banks' Investment In Insurers
BEIJING -(Dow Jones)- China's banking regulator issued strict rules governing
banks' investments in insurers Thursday, in a move to limit the potential risks
arising from such cross-sector investments.
The China Banking Regulatory Commission said in a statement it will allow
commercial lenders to invest in only one insurer each.
The regulator said banks must deduct the value of their investments in an
insurer from their capital.
That stipulation will likely make investments in insurers less attractive for
banks, who were told by the regulator earlier this week to strictly adhere to
capital adequacy regulations.
The rules also limit certain types of financial transactions between banks and
the insurers in which they have invested.
-Victoria Ruan contributed to this article, Dow Jones Newswires; 8610 8400
7799; victoria.ruan@dowjones.com
(END) Dow Jones Newswires
11-26-090500ET
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