MOF, CBRC urge banks to strengthen risk managment
Published: 01 Jun 2009 01:03:09 PSTJun. 1, 2009 (China Knowledge) - China's Ministry of Finance (MOF) and the China Banking Regulatory Commission (CBRC) have called on banking and financial institutions in the country to tighten financial and risk management to ensure the quality of their new loans, according to a joint statement released by MOF and CBRC on Sunday. The statement published on CBRC's website said banks should pay close attention to a company's finances, its external guarantees and its other liabilities to prevent risk pooling. When extending loans for mergers and acquisitions (M&A), banks should carefully analyze and evaluate risks to prevent possible losses caused by blind expansion. In the first four months of this year, China extended a total of RMB 5.17 trillion in loans, surpassing the full-year target of RMB 5 trillion for 2009 because of a relaxed monetary policy intended to boost its economy amid the deepening economic recession. This sharp growth in new loans aroused deep concerns over potential risks. Copyright © 2009 www.chinaknowledge.com |
Go to Page
Page 1 of 1
1
Source:
China Knowledge
If you believe an article violates your rights or the rights of others, please contact us.
Digg
Reddit
Mixx it
FacebookRelated News
Most Read
- 1BYD Auto to expand into solar energy field
- 2Entrepreneurblues
- 3AUTOSHOW-INTERVIEW-UPDATE 1-Changan Ford Mazda
- 4ANALYSIS-CFTC cautious on position limits, set
- 5Beyond The Anti-Virus Arms Race
- 6Beware of phishing scams if you are using
- 7Help protect yourself from phishing scams and
- 8Xi'an to launch industrial zone
- 9China Longyuan Power plans HK$17.5-bln HK IPO
- 10INTERVIEW-StanChart eyes $800 mln in renewable
