The People 's Bank of China ( PBOC ) is looking to rein in risk in China 's $ 4tn market of high - yielding investment products being pushed out by commercial banks to ordinary savers . In a notice to banks , PBOC said commercial banks must count wealth - related products as part of their total credit , making them subject to capital and other regulatory restrictions , and the banks ' risk exposures more transparent . The boom in wealth - Management products in ##dices over the past four years has significantly increased the risk to banks , warn investors , as many have invested without losing their capital reserves against defaults .
The People's Bank of China (PBOC) is looking to rein in risk in China's $4tn market of high-yielding investment products being pushed out by commercial banks to ordinary savers. In a notice to banks, PBOC said commercial banks must count wealth-management products as part of their total credit, making them subject to capital and other regulatory rules, and the banks' risk exposures more transparent. The boom in wealth-Management products in China over the past four years has significantly increased the risk to banks, warn regulators, as many have expanded without increasing their capital cushions against defaults.