China to step up regulation on banking sector

China's banking regulator said it will toughen regulation on the banking sector this year in a move to defuse financial risks.

Priorities of the work were listed in a statement of the China Banking Regulatory Commission (CBRC) Saturday, including shadow banking supervision and consumer protection.

Risk control will be strengthened in interbank activities, financial products and off-balance sheet business, according to the statement. Violations in corporate governance, property loans, disposal of non-performing assets and other key areas will also face stricter punishment.

The CBRC expects to rein in increasing violations, redirect capital to the real economy, and prompt banks to focus on their main business.

The move signaled continued hard stance from the government following a tough financial clean-up in 2017.

The CBRC acted hard on market disorder last year, imposing nearly 3 billion yuan (around 450 million U.S. dollars) of fines on banking institutions and punishing 270 individuals.

Although progress has been made in clamping down on irregularities last year, the situation remains grim as more efforts are needed in banks' shareholder management, corporate governance and risk control, the CBRC said.

The tone-setting Central Economic Work Conference has listed defusing major risks as one of the three tough battles the country will fight in the three years starting 2018.