China must strike the right balance of the loan to ensure stable economic growth and inflationary pressures under control, said: Behold, a top bank supervision in the country in comments published Tuesday.
Liu Mingkang, chairman of China Banking Regulatory Commission said in a report published in the Chinese Financial News that the risk of inflationary pressures caused by rising international prices were low, the light, but caution is justified.
The key to the equilibrium price to increase pressure against the continuation of economic development lies in the implementation of government policy and channel control of funds, said Liu.
With economic growth, inflation and credit policy, it is important that the credit policy is under control, Liu said in the report, which also appeared in The Search for Truth, the largest newspaper Communist Party to power.
Notes Liu said the Chinese government focus on the flow of funds, beginning with Chinese banks to a record 9.6 trillion yuan (1.4 trillion U.S. dollars of support) in new loans last year, the recovery plan of the government.
The authorities have recently moved into a purely bank loans, which both increases the reserves of banks because of concerns about bubbles in asset prices and increase the risk of non-performing loans.
Prime Minister Wen Jiabao, in an online chat before meeting this week by Congress of the NPC, a largely ceremonial Parliament, reiterated Saturday that China should be a policy of monetary expansion, but found instead of inflation do not derail the third - the world's largest economy.
Liu said that this year, with large Chinese banks have capital ratio of 11 percent or more to bear, while the share of small and medium-sized banks will be 10 percent or more. His comments appear to Scotch recent Chinese newspaper reports suggesting that the situation could get.
Credit policy focus on loans to help guide investments that create jobs, emerging strategic industries and in agriculture and small businesses, while flows to find loans to tame one of the areas of waste and people reported that the over-capacity, Liu said.
Take a strict dividing lines in credit policy,芦 Liu said, calling for closer monitoring of financial institutions, local government has led the tools and support investments in private companies.
In principle, there is no problem of bridging loans for vehicles of local investment, Liu said.
We all unjustified restrictions on entry of private investment to stop as soon as possible, he added.
