This July 23, 2018 file photo shows a Chinese clerk counting yuan banknotes at a branch of Bank of China in Nantong city, East China's Jiangsu province. (PHOTO / IC)

BEIJING - China's banking and insurance regulator will strengthen regulation of commercial banks' debt quality by clarifying the core elements over the problem.

In recent years, with the market-based reform of interest rates and the development of the capital market, internet finance and shadow banking, commercial banks face more complicated debts, which led to increased oversight difficulties, said an official with the China Banking and Insurance Regulatory Commission on Friday.

Commercial banks should improve the stability of debt sources, strengthen the monitoring and analysis of changes in the scale and structure of debt and prevent risks caused by large and abnormal fluctuations in debt

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Commercial banks should improve the stability of debt sources, strengthen the monitoring and analysis of changes in the scale and structure of debt and prevent risks caused by large and abnormal fluctuations in debt.

Meanwhile, it is necessary to improve the diversity of debt structure, establish a debt structure index regulation system based on factors including industries, customer types and product categories, according to the commission.

Commercial banks are not allowed to absorb deposits by illegal means such as rebates, depositing through third-party intermediaries, delayed payment and loan transfers. In addition, commercial banks that absorb deposits through the internet shall abide by relevant regulations.

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