:quality(85)//cloudfront-us-east-1.images.arcpublishing.com/infobae/7NI6T2JQEEM5DTIOLM673XDLXA.jpg "China to improve credit management in financial sector 1")
BEIJING, March 3 (Reuters) – China will guide its banks and financial institutions to further strengthen credit management, including excessive lending and debt avoidance, the banking and insurance regulator said on Friday. from the country.
Banks and qualified institutions are encouraged to establish a joint credit committee through which information on corporate debt avoidance will be shared, and such behavior will be firmly suppressed, the Banking and Insurance Regulatory Commission of China (CBIRC) in a notice on its website.
“Reasonable funding based on prudent valuation will be provided to avoid excessive borrowing,” the regulator said.
Banks and financial institutions should not relax risk management requirements to win customers, the CBIRC added.
China is committed to deepening financial sector reform to better serve its small businesses, Guo Weimin, spokesperson for the Chinese People’s Political Consultative Conference (CPPCC), said at a press conference.
The CPPCC, the country’s top political advisory body, will begin its annual meeting this weekend, while the National People’s Congress, the country’s legislative body, will meet separately for its annual session.
(Reporting by Tang Ziyi and Ryan Woo; Writing by Meg Shen; Editing by David Goodman and John Stonestreet, Spanish editing by José Muñoz on Gdansk Newsroom)
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.
For tips or news submission: [email protected]