BEIJING (Reuters) – China’s financial regulators have set up a regional mechanism to improve coordination on identifying, monitoring, reporting and resolving financial risks in the sprawling Yangtze River Delta, a provincial banking regulator said on Thursday.
“Regulators will take actions in sync to tightly control financial risks and prevent contagion risks,” Yu Lin, bureau chief of the Anhui Branch of the China Banking and Insurance Regulatory Commission (CBIRC), told reporters in Beijing.
“The practice also fits the country’s roadmap of integrated banking and insurance regulation,” Yu added.
The eastern province of Anhui shares a border with Jiangsu and Zhejiang provinces, which with Shanghai form the Yangtze River Delta, one of the most densely populated regions in the world.
CBIRC officials said on Tuesday that the regulator would tighten liquidity management for the country’s smaller banks and offer cross-region liquidity support for rural commercial banks if needed.
A run on Yingkou Coastal Bank in northeastern Liaoning province last week, China’s second bank run in less than two weeks, has revived worries about the health of the country’s smaller lenders.
(Reporting by Cheng Leng and Ryan Woo; Editing by Gareth Jones)