Banks told to be cautious with external credit ratings
Updated: 2011-02-18 10:47
BEIJING - China's banks should be cautious in using external credit ratings when providing loans to companies, the country's banking regulator said Thursday.
It said commercial banks should rely on their own internal ratings. Banks that cannot rely on their own ratings should compare rating results from at least two external credit rating firms and use the lowest grade.
The policy aims to regulate lenders' use of external ratings and prevent systematic risks, the statement said.
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