Feb 03 - CBRC Strictly Investigates Inter-bank Placement

Source: Caijing, ChinaScope Financial (Data)

+       Some market participants informed that the China Banking Regulatory Commission (CBRC) had released an urgent notification to commercial banks in mid-January. The notification required banks to report the scale, operating mode and counterparty of their inter-bank placement.

+       Since last year, multiple banks have been expanding their inter-bank placement to avoid regulations on lending scale and loan-deposit ratio. In the third quarter of 2011, Bank of China Ltd. (BOC) (SSE: 601988; HKEX: 3988) and Agricultural Bank of China Ltd. (ABC) (SSE: 601288; HKEX: 1288) witnessed 55% and 60% increases respectively in this business. .

+       Related Sector: Commercial Banks

+       Related Data: Placements

The scale of inter-bank placements doubled in 11Q3 compared with 10Q4.

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