China has released a list of domestic lenders, which will be required to follow tighter regulations to prevent a major financial crisis.

The list, which includes 19 banks that are considered systematically important, has been jointly issued by the People’s Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC).

PBOC and CBIRC have divided the six state-owned commercial banks, nine joint-stock banks and four urban commercial lenders into five groups.

There are no banks in the fifth group and the fourth group holds the highest importance, which includes the Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China, and China Construction Bank.

The list also includes lenders such as China Minsheng Banking Corp, and Ping An Bank, which is the banking unit of the insurance company Ping An Insurance.

As per Reuters’ report, these lenders will face additional capital requirements of between 0.25% to 1%.

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Additionally, the banks will be subject to additional leverage requirements and will be required to prepare for potential risk events.

These steps are aimed at improving the risk management at the Chinese banks that are crucial for the country’s financial wellbeing.

The Chinese authorities have tightened their grip on industries ranging from finance to real estate to mitigate financial risk.

Last week, media reports emerged that China’s corruption watchdog Central Commission for Discipline Inspection (CCDI) will inspect 25 financial institutions, including the CBIRC.