The credit plans for commercial banks should be made by their board of directors and the China Banking Regulatory Commission (CBRC) won't control them directly, sina.com.cn, cited the CBRC on Monday as saying.

Rumors circulated on Monday that the CBRC had asked the Bank of China to remarkably reduce its new loans from last year’s 1.1 trillion yuan ($161.1 billion) to be within 650 billion yuan in 2010. And some say China is starting its window guidance of financial institutions.

The CBRC said commercial banks should ensure their pace and quality of new loans and consider the indicators of capital adequacy ratio, provisioning coverage ratio, liquidity, leverage ratio to better meet the demand of the real economy. But specific credit plans should be in the charge of banks' board of directors, the CBRC confirmed.

Analyst cited by the China Securities Journal said managing banks' credit lines happened only at the time of the planned economy, and as commercial banks are gradually developing into independent enterprises which are responsible for their own profits and losses regulators generally won't directly control their lines of credit.