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PBOC to boost coordinated oversight of key financial firms

China Focus

PBOC to boost coordinated oversight of key financial firms

Bloomberg Published on Sat, Aug 12, 2017 / 11:22 PM GMT+8

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(Aug 12): China’s central bank said it will step up coordinated oversight of systemically important financial institutions, another step toward defusing risk before a gathering of the country’s top leaders later this year.

The People’s Bank of China also said it will limit the flow of credit to speculative housing purchases and monitor how global markets are affecting funding in the financial system, according to a quarterly monetary policy implementation report released late Friday in Beijing. The report is mainly a review of monetary policy conducted in the second quarter.

"The PBOC wants to keep overall monetary conditions on the easy side but wants to exert more control on where and how liquidity gets deployed," said Michael Shaoul, chief executive officer of Marketfield Asset Management LLC in New York. "Controlling housing credit is an obvious focus, and they’re probably quite happy with the effect of mortgage curbs brought into play in specific markets over the last few months."