CCR World Magazine

BEIJING, CHINA - China’s banking regulator, China Banking Regulatory Commission urged country’s banks to curb credit growth this year on concerns that the fast growth may lead to an asset bubble.

In a statement issued here CBRC said Chinese banking institutions should strengthen credit management and strictly prevent the non-performing loans level from rebounding.

China’s central bank, the People's Bank of China raised the yuan deposit reserve requirement ratio by 0.5 percentage points effective Jan. 18, sending a strong signal that the central bank is stepping up efforts to absorb excessive liquidity.

Reportedly, China's new yuan denominated loans totaled 600 billion yuan in the first week of January this year.

Last year, Chinese banks extended a total of 9.59 trillion yuan in new loans, 4.69 trillion yuan more than in 2008.