BEIJING -(Dow Jones)- China's banks face a potential concentration of risks over the long term due to their exposure to projects related to the country's urbanization process, China Banking Regulatory Commission Chairman Liu Mingkang said Monday.
Liu's comments in a speech at the Asian Banker Summit 2009 in Beijing highlight the regulator's concerns over systemic risks in the banking sector.
Beijing has urged banks to direct huge amount of loans to support infrastructure projects as well as other types of industrial investment. In the first quarter, banks issued CNY4.58 trillion worth of new loans, nearly equal to all new lending made last year.
Separately, Liu said China's financial infrastructure, such as the clearing system for derivative contracts, has yet to be fully developed. He also said China still doesn't have deposit insurance or a bankruptcy law for financial companies.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment