Watchdog tells banks to enhance oversight

The China Banking Securities Commission instructed commercial banks to set up specialized departments in their headquarters to regulate interbank and investment services, the 21st Century Business Herald reported.

The measure aims to keep accelerating interbank business under control and to enhance oversight.

Commercial banks have been allowing their first or second-level branches to invest their assets or wealth management funds in trust and asset managements.

Some of the branches that belong to the same bank are even fighting for the share of the same business.

Shang Fulin, the president of CBRC, earlier stressed the importance of streamlining banking regulation.

"Banks must separate the oversight of loans, wealth management, interbank business, investment, and private banks to strengthen concentrated supervision," said Shang.