Chinese Banks Told to Ensure Loans go to Real Economy

Chinese banks must strictly guard against risks and ensure that credit flows to the real economy, Wang Huaqing, a senior official at the China Banking Regulatory Commission (CBRC), was quoted as saying on Friday.

Wang, secretary of the CBRC's discipline commission, reminded banks that they should gradually increase provisions to 150 percent of their non-performing loans from 130 percent.

"We need to closely watch the new situation and problems faced by the banking sector and take powerful measures to prevent risks," Wang was quoted as saying by the official Financial News.