China bans fixed-term deposits for banks via third-party Internet platforms
Commercial banks in China have been barred from conducting fixed-term deposit and term-current optional deposit business on third-party Internet platforms, a regulation published on Friday said.
The regulation, jointly issued by the China Banking and Insurance Regulatory Commission and the People’s Bank of China, requires commercial banks to carry out deposit businesses through Internet platforms in accordance with the law and regulations, and must not use the Internet to violate or circumvent regulatory requirements.
Commercial banks should strengthen the assessment and monitoring of business risks, enhance asset and liability management as well as liquidity risk management, while reasonably controlling the cost of debt, according to the regulation.
It also requires commercial banks to strengthen sales management and network security protection when carrying out deposit business through the Internet and effectively protect the lawful rights and interests of consumers.