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The
People's Bank of China (PBOC) will include the WMPs in its Macro
Prudential Assessment (MPA) risk-tool starting in the first
quarter of 2017, the sources said, potentially requiring banks
to put aside more capital.
The PBOC also urged financial institutions to strengthen
liquidity management and keep next year's lending growth at a
"rational and appropriate" pace, the sources said.
Over the weekend, China's top leaders vowed at a key economic
planning meeting to prevent asset bubbles in 2017 and place
greater importance on the prevention of financial risk. The
leaders also said it would keep monetary policy "prudent and
neutral" in 2017.
China's $3.5 trillion wealth management industry has been a
source of risk, as off-balance sheet WMPs channel deposits into
risky investments with little regulatory oversight, offsetting
some of Beijing's efforts to reduce corporate leverage.
Starting in the first quarter of next year, off-balance sheet
WMPs will be included in the MPA assessment framework, the
sources said.
MPA currently includes checks on loans, bond and equity
investments and deposits at non-financial institutions.
The central bank also urged "stable and orderly" growth in WMP
business toward the year-end, the sources said.
Reuters reported in July that China's banking regulator was
drafting new rules to tighten control over the sprawling WMP
industry, as Beijing grows increasingly concerned about the
potential risks of high leverage and worsening credit quality
associated with such businesses.
PBOC could not give immediate comment.
(Reporting by the Shanghai Newsroom; Editing by Jacqueline Wong)
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