China’s commercial banks have been urged to accelerate loan support to private sector when tightening lending policies to cool down expansive investment and credit growth.
Liu Mingkang, chairman of China Banking Regulatory Commission (CBRC), called upon financial institutions to step up support - especially to the nation's privately-owned companies - during a tour late last week to East China's Zhejiang Province, where the private sector is the most developed.
Frenzied fixed investment and bank loan growth in some sectors since in the second half of last year has prompted the government to take a string of tightening measures, including requiring banks to set aside more reserves to restrict their lending capacities and tightening land controls.
