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China's banking watchdog has ordered lenders to vet loans to energy-hungry firms, in a bid to improve energy efficiency.
The China Banking Regulatory Commission is requiring banks to submit the results of their assessments by the end of this month. In its statement, the commission also instructed banks to strictly assess loan applications from energy-intensive firms. The banking regulator reaffirmed a directive that loans earmarked to expand industrial capacity, must receive head-office approval.
Last month, CBRC instructed lenders to draw up a blacklist of companies, which have violated energy-saving and environmental regulations.