CBRC urges reasonable control for credit expansion

Chairman of the China Banking Regulatory Commission (CBRC) Liu Mingkang said January 26 that financial banking institutions must reasonably control new loans in accordance with the effective needs of the real economy and prudent principles.

Liu stressed that each financial banking institution should comprehensively evaluate and effectively prevent the risks related to the financing platforms of local governments, strengthen the tracking and review of extended loans, promote the development of the consortium loan mode and prevent risks involving large sums and centralized loans. They should also strengthen the monitoring and window guidance on loans to the real estate industry, continue to firmly control loans to the industries with high energy consumption, high emissions and overproduction, and intensify the regulations on cooperation between banks and trust companies, or among banks, trust companies and the governments.

Liu added that the year 2010 is when the global economic and financial systems will continue their tough recoveries and adjustments. Given the complicated and uncertain macroeconomic and financial situations at home and abroad, there should be higher requirements for the scientific management of China's banking industry.

He stressed that in 2010 the banking industry should attach more importance to adjusting the loan structure and put more attention to the scientific development as well as the prevention of financial risks. The industry should adhere to the principle of ensuring loans to some areas and controlling loans to other areas to positively support the transition of China's economic development mode.

By People's Daily Online