China to push fixing local government debt, housing loans
Tuesday, 21 February 2012 | 12:27
questionable local government debt and containing risky real estate
loans are priorities at a time when the global financial crisis is
deepening, China's banking regulator said on Monday.
authorities will strive to prevent such systematic financial risks, said
Shang Fulin, head of the China Banking Regulatory Commission, in a
statement on the CBRC's website.
Shang urged banks and financial
institutions to "enhance their support for China's real economy,"
according to the statement, which was carried by the government-run
Xinhua News Agency.
China launched an economic stimulus package in
late 2008 to counter the impact of the global financial crisis but which
sparked rampant bank lending to local governments.
debt - officially estimated at 10.7 trillion yuan ($1.7 trillion) - has
caused concerns among economists that the debt could destabilize the
China's central bank released a similar statement last week
saying it would pay close attention to risks in local banks, non-bank
financial institutions and private lending in 2012.
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