Money

CBRC stresses shadow banking risks

(Xinhua)
Updated: 2011-05-10 13:36

BEIJING -- China's banking regulator said Monday that it would step up supervision over loans granted by different institutions and strengthen prevention against risks in the shadow banking system since credit risks are "still severe."

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Banking regulators should pay more attention to the shadow banking system with close monitoring and analysis, while intensifying a crackdown on illegal financial activities, said China Banking Regulatory Commission (CBRC) in a statement on its website, citing Liu Mingkang, chairman of the CBRC.

Shadow banks are non-banking financial institutions functioning like commercial banks, including insurers, mutual funds and private equity funds.

Liu urged banks to strictly follow official schedules to put off-balance sheet loans back on their books. The CBRC said in August last year that the work should be completed in two years.

He also called for closer attention to new trends in the property market and stronger regulations on real estate loans, as well as more communications with local housing authorities.