Regulator to support 'reasonable' credit demand (3)

And it is placing an emphasis on the need to monitor and control lenders' off-balance-sheet business.

In December, it required banks to tighten their controls on the sale of third-party financial products, such as insurance, trust products and investment funds, especially those made through their branches.

The order came after a product that Hua Xia Bank sold through one of its branches failed to pay out upon maturity in November, triggering investor protests.

"We will prevent the risks of private and illegal financing from spilling over into the banking system," the regulator said, adding that banks and bank employees cannot participate in private financing.