Sources familiar with the matter were quoted by Reuters as saying that the new rule will come into effect immediately and henceforth will not allow banks to boost the customer deposits that are reported in their financial statements.
The move will also forbid commercial lenders from escaping regulatory requirements while executing bond trading between the high-yielding wealth management products (WMPs) accounts and their own proprietary accounts.
In order to attract consumers, banks have been fast issuing WMPs and selling third-party WMPs through their retail channels.
The new agency said citing Standard & Poors’ data that WMPs offered by Chinese banks grew by 56% in 2012 to RMB7.12trn ($1.16trn), which is equal to 7.6% of the system’s total deposits at the end of the year.
