CCTV.com - CNTV English - CCTV News


Homepage > News > Biz >

Banking regulator: China still tough on real estate loans

07-22-2010 15:22 BJT

China's banking industry needs to overcome various challenges, especially those from government financing platforms, real estate loans and industrial overcapacity, so as to achieve sustained and healthy development, said Liu Mingkang, chairman of the China Banking Regulatory Commission, at a meeting on the current economic and financial situation on July 20.

He stressed that the commission will continue with strict regulations on real estate loans and maintain the continuity and stability of control policies.

Liu said at the meeting that commercial banks should further strengthen risk management of real estate loans and continue to conduct stress tests on loans to the real estate industry and related industries.

Liu warned banks about the risks from local government financing platforms and required them to strictly adhere to loan regulations, accurately classify loans according to strict timetables, hold enough reserve funds and write off bad debts.

He also said banks must enhance cooperation with local governments in verifying accounts and keeping management records, impose stringent requirements for credits to new projects and strengthen credit risk management.

Liu said that the commission will keep strict control over credits to three types of industries with high energy consumption and high emissions or those that are suffering from problems of overcapacity or outdated productivity. The commission hopes to effectively curb lending to these industries by adopting the differential pricing system, introducing risk capital and other means.

Liu said that banks should attract more deposits while granting fewer loans and increasing capital reserves. He said banks need to continue with flexible, safe and profitable management practices. Banks must establish a safe, sound and sustainable banking system that can help avoid undue risks, he said.

Editor:Xiong Qu |Source: People's Daily

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program