It is “normal and beneficial” for China to put some off-balance sheet lending into the framework of balance sheet management and such a structural adjustment will not have a major bearing on interest rate levels, said Zhou Xiaochuan, central bank governor, on Friday.
“The central bank cares more about overall (financial) figures … and influence of overall indicators on economic growth quality, prices and employment,” Zhou said at a press conference during the first session of the 13th National People’s Congress.
China has strengthened financial regulation and broadened its regulatory oversight to include products not counted on the balance sheets of financial institutions, such as the so-called wealth management products, to forestall financial risks. Such an adjustment is based on normal regulatory and accounting requirements and will not have a major bearing on overall financial figures, he said.
