China Plans to Add Off-Book Wealth Products to Risk Assessment
- PBOC official speaks in Q&A with the central bank’s newspaper
- ‘Risks are hidden in some bank businesses,’ the official said
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The People’s Bank of China will include wealth management products held off bank balance sheets in its framework for gauging risk to the financial system starting in the first quarter, according to a newspaper controlled by the central bank.
Rapid growth of the products can pose risks to the economy and stepping up monitoring is necessary to more comprehensively evaluate the potential threat, the Financial News reported Monday, citing an unidentified official at the monetary authority.