China strengthens supervision of public funds deposit

BEIJING - China will strengthen supervision of commercial banks in deals of public funds deposit, to maintain a fair and orderly market, said the banking regulator in a statement on Monday.

Authorities will no longer use metrics such as the amount of deposits, market share or rankings of deposits, and strengthen audits of public funds deposit, said the statement.

Cases that break the law will be dealt with by the judiciary, according to the statement.

Employees of commercial banks should avoid personal relationships with public funds holders with deposits in their banks, and respect customers' wishes, it said.

The China Banking Association should urge its members to favor fair competition, avoid inappropriate deals and promote activities that complies with industry norms and practices.

Authorities will tighten control of illegal fund-raising to protect the public interest and fend off systemic risk. They must strengthen supervision of intermediaries in private financing, deal with fraudulent advertisements and improve legal measures against illegal financing.