Text Version
RSS Feeds
Newsletter
Home Forum Photos Features Newsletter Archive Employment
About US Help Site Map
SEARCH   About US FAQ Site Map Site News
  SERVICES
  -Text Version
  -RSS Feeds
  -Newsletter
  -News Archive
  -Give us feedback
  -Voices of Readers
  -Online community
  -China Biz info
  What's new
 -
 -
China banking regulator urges banks to strengthen risk management
+ -
10:37, September 19, 2009

 Comment  Tell A Friend
 Print Format  Save Article
China's banking regulator has reiterated that domestic lenders should seek to enhance their risk management and stick to regulatory requirements to reduce worries over financial risks caused by rapid credit growth this year.

"With bank loans growing rapidly, all kinds of risks are rising in the banking industry", Liu Mingkang, chairman of the China Banking Regulatory Commission, was quoted as saying by Saturday's China Daily.

Liu made the requirement at a conference in Shanghai in response to wide concerns of rising default risks at banks and asset bubbles in the capital market, sparked by a surge of new loans in the first eight months which reached about 8.15 trillion yuan (1.19 trillion U.S. dollars), far higher than the 4.91 trillion yuan credit for the whole of last year.

The ongoing global financial crisis has triggered a worldwide reflection on overhauling the financial supervision system, which includes revising and improving rules on capital adequacy, provision, leverage ratio, liquidity, as well as corporate governance and compensation system, the newspaper quoted Liu as saying at a conference in Shanghai.

Chinese banking sector should strengthen their compliance management and get prepared to follow up the upcoming changes among the global financial institutions.

Many Chinese banks have promised to slow down lending in the second half after the banking regulator urged domestic banks many times to ward off possible risks. New lending eased in July and August which saw new loans at 356 billion yuan and 410.4 billion yuan, respectively.

However, the central authorities have pledged to maintain its proactive fiscal policy and a moderately loose monetary policy as the country's economy is at a critical moment for recovery.

The Communist Party of China (CPC) Central Committee vowed Friday at the closing of the Fourth Plenary Session of the 17th CPC Central Committee in Beijing that the country would continue with macroeconomic policies to cope with the global financial crisis.

Source: Xinhua



  Your Message:   Most Commented:
Why India is pursuing military strength?
World's top ten most mysterious and horrible spots
Baby alien found by Mexican farmer
Which country has the most beautiful women?
Indian media stinks up public opinions

|About Peopledaily.com.cn | Advertise on site | Contact us | Site map | Job offer|
Copyright by People's Daily Online, All Rights Reserved

http://english.people.com.cn/90001/90778/90857/90859/6761995.pdf