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China banking watchdog to tighten monitoring on non-banking financing

(Xinhua)
Updated: 2010-03-10 09:17
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BEIJING - China would step up work to monitor non-banking financing, said the China Banking Regulatory Commission (CBRC) Tuesday in a statement on its website.

More focus would be put on businesses in connection with trust companies and the real estate sector to prevent banks from using non-banking financing to circumvent policies, said Liu Mingkang, chairman of the CBRC.

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The 2010 government loan target is 7.5 trillion yuan ($1.10 trillion). But in January alone, banks extended 1.39 trillion yuan in new loans -- 18.53 percent of the full-year target.

More work should be done to improve risk management capacity to achieve sustainable development of the non-banking financing sector, Liu said.

Non-banking financial institutions under the CBRC supervision include trust companies, finance companies, financial leasing companies, auto financing companies and money brokers.

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