CBRC to check loans at commercial banks

cctv.com 03-24-2005 10:32

China's banking regulator moved on Wednesday to ensure banks are properly controlling credit risk, saying it would soon carry out on-the-spot checks on the accuracy of loan classifications.

The China Banking Regulatory Commission said it would check loans at 10 commercial banks that have diverse shareholdings, including the China Merchants Bank and the Bank of Communications, which is one fifth owned by HSBC. Officials said the move is aimed at "promoting and strengthening credit risk management and boosting the quality of assets". The CBRC has been trying to implement a five-category loan classification system, which is stricter than what the banks have been using. Its key aim is to minimize any new bad debts.

Editor:Chen Zhuo  Source:CCTV.com