SHANGHAI: China’s banking regulator has asked banks to be cautious on their lending strategies this year, as Beijing seeks to avoid high
inflation and overheating the world’s third-largest economy.
In a statement issued late on Friday, China Banking Regulatory Commission (CBRC) said banks should ensure that banking credit is entering the real economy and to control lending to high-polluting industries and industries with overcapacity.
It also called on banks to monitor the property sector.
“Banks should pay high attention to the changes in the property market and strictly implement relevant credit policies to enhance supervision and window guidance of property loans,” CBRC said in a statement posted on their website.
Banks were also told to control risks with “greater efforts”.
Last week, China took its strongest step towards tightening monetary policy by increasing the banks’ reserve requirement ratios (RRR) by 50 basis points as of Jan 18.
The move was the first time the central bank had adjusted the ratio since a cut in December 2008, when it was loosening policy to cushion the economy from the global financial crisis.
source: TOI
