Recently, according to market news, small and medium-sized banks in some provinces have received regulatory reminders requiring that the growth rate of financial investment should not be higher than the growth rate of loans, and that the term of new bonds should not be higher than the term of stock. In response, people familiar with the matter said while seeking evidence that the financial management department has not made uniform national arrangements on the growth rate of financial investment of small and medium-sized banks and the long-term duration of new bonds. Under the principle of marketization, bond investment decisions made by small to medium banks based on their own balance and liability conditions fall within the scope of their independent management rights. However, “right to operate independently” goes hand in hand with “institutional restraint.” Another person familiar with the matter told the reporter that the interest rate risk level and risk management status of commercial banks are subject to a clear system. Local supervisory authorities will carry out daily risk monitoring and reminders to the institutions under their jurisdiction, which is a routine supervisory action.

Recently, according to market news, small and medium-sized banks in some provinces have received regulatory reminders requiring that the growth rate of financial investment should not be higher than the growth rate of loans, and that the term of new bonds should not be higher than the term of stock. In response, people familiar with the matter said when seeking evidence that the financial management department has not made uniform national arrangements on the growth rate of financial investment of small and medium-sized banks and the long-term duration of new bonds. Under the principle of marketization, bond investment decisions made by small to medium banks based on their own balance and liability conditions fall within the scope of their independent management rights. However, “right to operate independently” goes hand in hand with “institutional restraint.” Another person familiar with the matter told the reporter that the interest rate risk level and risk management status of commercial banks are subject to a clear system. Local supervisory authorities will carry out daily risk monitoring and reminders to the institutions under their jurisdiction, which is a routine supervisory action.