www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

National

Regional

Taiwan, HK, Macao

Special Coverage

Focus

Society

Profiles

Banking regulator warns of risks in loan spree

(Xinhua)
Updated: 2009-07-07 20:19

BEIJING: China should be cautious about possible risks in the financial system posed by the current rapid loan growth and a concentration of loans in certain industries and business, an official with the China's banking regulator said Tuesday.

Related readings:  New loans may reach 6.5t yuan in first half  M&A loans could transform industry but also risky  Consumption loans: Will Chinese actually finance?  China's new bank loans rise to 664.5b yuan in May  State-owned banks report unprecedented expansion of SME loans

Wang Huaqing, disciplinary secretary of the China Banking Regulatory Commission said syndicated loans would be a good tool for banks to prevent risks caused by a concentration of credit.

"With new loans expanding fast in China, risks of the concentration of bank loans are becoming evident," he said. Bank loans concentrated in certain industries and businesses are subject to changes in the macro-economy and companies' performance, which would be likely to result in damage to the financial system, he added.

New yuan-denominated loans in the first five months had reached 5.84 trillion yuan (US$854.8 billion) to finance projects in the stimulus package unveiled in November of last year. The figure has far exceeded the full-year target of 5 trillion yuan.

In a notice dated May 31, banking regulators asked lenders to pay particular attention to the financial conditions of debtors and conduct better risk analysis before making loans, to ensure loan quality.