SHANGHAI, March 30 China's banking regulator is
inspecting off-balance sheet risks at city commercial banks, two
sources told Reuters on Thursday, as China steps up checks on
banks in an effort to control risky lending.
The China Banking Regulatory Commission (CBRC) is checking
the size and potential risks from off-balance sheet activities
including non-guaranteed wealth management products (WMPs),
entrusted loans and entrusted investments, the sources said.
CBRC will take a close look at non-guaranteed WMPs that
invest in non-traditional debt investments including those for
local government financing vehicles, property, and
infrastructure projects, the sources said.
WMPs, often linked to shadow banking, have seen explosive
growth in the last few years even as authorities try to contain
risks from a rapid build-up in debt.
The CBRC did not immediately comment when contacted by
The checks by the banking regulator are separate from the
People's Bank of China's (PBOC) quarterly Macro Prudential
Assessment, or MPA, which assesses risks in banks' books and
encompass off-balance sheet WMPs for the first time in the first
(Reporting by Li Zheng and Elias Glenn; Editing by Richard