MNI BRIEF: PBOC Flags Risk Prevention As A Major Mandate: Pan

The People's Bank of China will take measures to curb the buildup of financial risks, address idle funds circulating in the financial sector, and strengthen the coordination between monetary policy and fiscal, industrial policies, said Governor Pan Gongsheng in an article on People’s Daily on Thursday. 

The central bank has dual objectives of maintaining both currency stability and financial system stability, meaning the monetary policy framework aims to support stable currency value, economic growth, full employment and balance of international payments, he said.

He added that supervision will focus on systemically important financial institutions, cross-border capital flows, financial markets, the property sector and internet-based finance to assess risks. Prompt action will be taken to correct and curb herd behaviour in capital markets, while macro-prudential management of real-estate finance will be further strengthened, he said. (See MNI: China Promotes FX Hedging As Yuan Swings Seen Growing)