Business
        

Money

China to examine bank loans, tighten licenses this year

Updated: 2011-04-18 15:14

(Agencies)

Twitter Facebook Myspace Yahoo! Linkedin Mixx

China's banking regulator will launch a thorough examination this year of loans extended over the past few years, and will tighten the issuance of banking licenses in response to global easing of liquidity, the Shanghai Securities News reported on Monday.

Related readings:
China to examine bank loans, tighten licenses this year China to cut bank loans to local govts
China to examine bank loans, tighten licenses this year EXIM Bank agrees to provide 640m yuan loans to for Nepalese project
China to examine bank loans, tighten licenses this year Bank offers 10 b yuan loans to drought-hit regions
China to examine bank loans, tighten licenses this year 
China Exim Bank eyes Africa loans, commodity focus

Chinese banks must conduct due diligence on their businesses and report any potential risks to the China Banking Regulatory Commission (CBRC), the newspaper reported, citing CBRC chairman Liu Mingkang.

The regulator will pay keen attention to "shadow banking" businesses as well as off-balance-sheet banking activities involving deals with trust companies in a bid to prevent the type of excessive leveraging that brought down Lehman Brothers, the article cited Liu as saying.

Financial innovation should be based on demand from the real economy, rather than on financial models alone, and should not only benefit the banks selling such products, Liu was quoted as saying by the newspaper.

Specials

In the swim

Out of every 10 swimsuits in the world, seven are made in China.

Big spenders

Travelers spend more on shopping than food, hotels, other expenses

Rise in super rich

Rising property prices and a fast-growing economy have been the key drivers.

The beauty of body art
Waiting for drivers' seat
Teeing off to a bright future