A slew of measures had to be taken then, both conventional and unconventional to assist the NBFCs. Evolution of Regulation 5. Regulation has generally kept pace with the dynamism displayed by the sector. Historically, more specifically from the 1960s, some form of regulation existed on deposit acceptance by NBFCs.
The PBC drafted and issued the Administrative Rules on Incorporation of Fund Management Companies by Commercial Banks. Allowing commercial banks to set up fund management companies would help to enhance the proportion of direct financing, advance the development of institutional investors, promote commercial bank reform and optimize resource allocation. Third, market maker system was established in the inter-bank bond market based on bilateral quotations.