China to regulate insurer's bank deposit business

BEIJING -- China will regulate some insurers' bank deposits to strengthen risk management during interest rate liberalization, China's insurance watchdog said Wednesday.

Insurance companies should standardize operations with bank deposits, which amount to about one third of total foundamental insurance assets, according to the statement released by China Insurance Regulatory Commission.

The statement calls for a custody mechanism for bank deposits, regulating deposit certificate mortgage business and enhancing information disclosure.

Enhanced regulations will aid insurers to handle possible asset management risks brought by the liberalization of interest rates, which is expected to be realized within one or two years according to the central bank governor's remarks.

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