China sets securitisation guidelines

02/8/2010 | Alibaba.com

Guidelines for handling securitisations were published by the China Banking Regulatory Commission on its Web site. The guidelines concur with standards set by the New Basel Capital Accord, released in July, for determining levels of risk capital involved in securitisations. Analysts are concerned, however, about the ability of Chinese banks to manage additional levels of risk. Banks could use the securitisation process to create derivatives with higher levels of risk, said Guo Tianyong, director of the Research Center of China Banking at the Central University of Finance and Economics.

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