BEIJING, Sept 30 (Reuters) - China's foreign exchange regulator named and shamed 10 banks that had assisted illegal capital outflows, vowing to crack down on fake forex transactions in authorities' latest effort to stabilise the sliding yuan.
The State Administration of Foreign Exchange (SAFE) listed 10 "typical" cases of misdeeds in a statement on its website on Thursday, involving money flowing overseas illegally through bank businesses such as offshore loans, trade finance, and outbound investment.
The misconduct involved local branches of 10 lenders that included some of the country's top banks, between 2017 and 2020, the regulator said.
SAFE said it will "strengthen the supervision of the forex market and crack down on illegal and unlawful behaviours with a focus on false and deceptive forex transactions."
Publishing the 10 cases is aimed at sending a warning to market players, the official Shanghai Securities News said on Friday, citing an unnamed SAFE official.
China's central bank said on Wednesday that stabilising the foreign exchange market is the top priority, and warned against one-way currency bets. The yuan has tumbled against a surging dollar over the past month.
The People's Bank of China has also asked major state-owned banks to be prepared to sell dollars in offshore markets, sources told Reuters.
SAFE will strengthen oversight of cross-border trade and investment against illegal forex transactions to safeguard national economic and financial security, the Shanghai Securities News reported on Friday.
Regulators will also closely monitor cross-border money flows, and step up the fight against fraudulent trade, the newspaper said.
Our Standards: The Thomson Reuters Trust Principles.
Federal Reserve Governor Michelle Bowman said Friday that averaging bank stress test results over several years could reduce volatility in bank capital requirements, as part of a broader speech defending a lighter regulatory approach to the industry.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.