A deputy head of the China Banking Regulatory Commission said on
Thursday that banks should reduce the amount of loans they
issue.
Commission vice-chairman Jiang Dingzhi said during a meeting
with financial institutions that the banking sector should pay
close attention to macro-economic development.
Many economists warn that the economy is facing overheated
investment and earlier central bank figures showed that domestic
banks issued 1.78 trillion yuan in loans in the first five months,
already consuming more than 70 percent of the annual target.
Banks should move to reduce non-performing lending, Jiang
said.
He called on commercial banks to adjust the lending structure by
actively increasing loans to small enterprises, saying big clients
are often more risky because of their "complication and
affiliation".
(Xinhua News Agency June 23, 2006)
