Central Bank Urges Balance in Bond Investments for Small and Medium-sized Banks
2 week ago / Read about 0 minute
Author:小编   

At a press conference held by the State Council Information Office, Cao Yuanyuan, head of the Financial Markets Department at the People's Bank of China (PBOC), emphasized that it is prudent for small and medium-sized banks to moderately increase their bond holdings within regulatory limits. This strategy not only augments the allocation of safe assets but also smooths out fluctuations in operating profits and contributes to market stability. However, she cautioned that these banks must strike a balance between investment returns and risk exposure, with a keen eye on interest rate and credit risks. The PBOC will further enhance market surveillance and collaborate with financial institution regulatory authorities to share information on detected high-risk institutions.