China to enhance credit management in financial sector

CHINA will guide its banks and financial institutions to further strengthen credit management, including excessive lending and debt evasion, the country’s banking and insurance regulator said on Friday (Mar 3).

Qualified banks and institutions are encouraged to set up a joint credit committee through which information on debt evasion by corporations would be shared, and such behaviours be resolutely cracked down on, the China Banking and Insurance Regulatory Commission (CBIRC) said in a notice on its website.

“Reasonable financing will be provided based on prudent assessment to avoid excessive lending,” the regulator said.

Banks and financial institutions should not relax risk management requirements to win customers, CBIRC added.

China vowed to deepen the reform in the financial sector to better serve its small firms, Guo Weimin, spokesperson of the Chinese People’s Political Consultative Conference (CPPCC), told a news conference.

The CPPCC, the country’s top political advisory body, is due to kick off its annual meeting this weekend as the National People’s Congress, the nation’s legislature, separately gathers for its yearly session. REUTERS