June 29, 2018 / 11:43 AM / 5 months ago

China cbank to raise reserve funds ratio for payment firms to 100 pct

BEIJING, June 29 (Reuters) - China’s central bank said on Friday payment firms will be required to deposit 100 percent of their total client funds with a central custodian by Jan. 14, 2019, marking the latest step to tighten supervision for third-party payment firms.

The People’s Bank of China said in a statement the measure was part of a broader effort to crack down on financial risk.

It has already raised the reserve funds ratio of third-party payment firms to 50 percent in April from 20 percent previously and said the reserve rate will eventually become 100 percent, meaning payment firms cannot make any investment with money deposited by banks. (Reporting by Shu Zhang, Lusha Zhang and Se Young Lee; Editing by Nick Macfie)

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