The CBRC ordered banks to raise security of property loans

 @ibtimes
on January 28 2010 1:14 AM

In a step to control credit growth in China, the Chinese Banking Regulator Commission ordered banks to stick to real estate lending policies in order to avoid bad loans, while the regulator pledged to satisfy reasonable financing needs. China is currently monitoring the credit market to avoid a bubble formation that may slow the world's third largest economy.

Last week the Chinese regulator asked a number of lenders to raise capital and limit lending, as it aims at controlling lending to reach 7.5 trillion yuan this year. On the other hand, the People's Bank of China forced banks to raise their reserves by 0.5% in an attempt to avoid an asset bubble.

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