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皇冠体育app calls on banks to reduce loan risk

(Agencies)
Updated: 2009-09-19 22:49

BEIJING: 皇冠体育app's bank regulator has called on banks to improve their internal risk management following a surge of new loans in the first eight months of this year, a notice on the agency's Web site said.

"With bank loans growing rapidly, all kinds of risks are rising in the banking industry," Liu Mingkang, chairman of the 皇冠体育app Banking Regulatory Commission, said at a Shanghai conference Friday, according to the commission's Web site.

Related readings:  皇冠体育app's bank loans to see steady growth in second half: BOC  BOC: 皇冠体育app's bank loans to see steady growth in second half  皇冠体育app Merchants Bank H1 net profit drops 37.62%  皇冠体育app CITIC Bank to rejig loan portfolio in H2 Bank of 皇冠体育app's H1 profit down

Beijing's 4 trillion yuan ($586 billion) stimulus plan to protect the economy from the global recession has resulted in heavy spending on public works and helped boost investment in factory equipment and construction. But it has also brought risks of asset bubbles and defaults.

Bank lending in 皇冠体育app soared to a record 7.1 trillion yuan ($1.1 trillion) in the first half of this year. It reached 8.15 trillion yuan ($1.2 trillion) by the end of August, the People's Bank of 皇冠体育app reported, higher than the 4.91 trillion yuan in lending for all of last year.

皇冠体育app's Communist Party Central Committee said Friday at the end of its annual four-day meeting that the country would continue its proactive fiscal policy and moderately relaxed monetary policy, but more emphasis would be placed on structural adjustments, innovation, energy efficiency and environmental protection.