Regulator to help small, midsize banks replenish capital

China's top banking and insurance regulator said on Thursday it has decided at a recent meeting that it will support local governments to issue special-purpose bonds to help small and midsize banks replenish capital, apart from deeply pushing forward the reform of rural credit unions.

The China Banking and Insurance Regulatory Commission said it will steadily promote the reform of the nation's banking and insurance sectors as well as risk mitigation in these sectors. The regulator will push for the implementation of supporting policy measures for nonperforming loan disposal at small and midsize banks.

The CBIRC will also support local governments to ensure timely delivery of presold homes in order to promote stabilized and sound development of China's real estate market. In addition, it will cooperate with relevant parties to prevent and mitigate risks associated with hidden local government debts, according to decisions made at the video teleconference on Monday.

The CBIRC said it will put the effort to stabilize macroeconomic fundamentals at a more prominent position, make better use of countercyclical adjustments, and fully implement a package of policy measures to stabilize the economy.