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Banking regulator warns of credit risks

(chinadaily.com.cn)
Updated: 2009-04-16 23:40

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China's top banking regulator Thursday urged the country's lenders to prevent the risk of bad loans when increasing credit support for the slowing economy.

Chinese banks must be "on high alert for the accumulation of hidden risks as loans surge" and balance business growth and risk control, said Liu Mingkang, chairman of the China Banking Regulatory Commission (CBRC), in a CBRC statement issued Thursday.

The lenders should make sure they have enough capital to cover potential credit losses and that the borrowers have the ability to repay the loans, Liu said...

The full text is available in the April Issue of China Banking. Please visit publications for more subscription details.