China drafts rules to oversee banking sector

China is considering issuing new rules to tighten risk controls in its banking sector that is diversifying rapidly into other services such as insurance, fund management and investment banking at home and abroad.

China Banking Regulatory Commission has finished drafting the rules and is soliciting feedback from the public, according to Shanghai Securities News. The public has until November 16th to offer opinions.

The newspaper said with the deepening reform of the country's major banks, their equity structure has turned increasingly complicated as they have set up many layers of holding firms abroad and acquired overseas financial institutions. The rule would allow CBRC to oversee units directly or indirectly controlled by domestic banks.