BEIJING (Reuters) – China’s banking and insurance regulator issued rules on Friday to further regulate commercial banks’ structured deposit products, aiming to rein in the rampant growth of the sector.

The new regulations will come with a grace period of 12 months. During the transition period, banks can still issue the products but the size should be gradually reduced, the China Banking and Insurance Regulatory Commission (CBIRC) said.

As of the end of August, the outstanding amount of structured deposits issued by commercial banks stood at 10.46 trillion yuan ($1.48 trillion), according to central bank data.

Over the past year, China’s commercial lenders have been selling more structured deposits — savings accounts coupled with an investment component — as an alternative to wealth management products, as the latter have come under greater government scrutiny.

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