China's banks must stay vigilant in assessing borrowing applications and prevent a resurgence of non-performing loans, the nation's banking regulator said.
China's banks must keep loans growth steady and extend support to rural and small-sized enterprises, Liu Mingkang (劉明康), chairman of the China Banking Regulatory Commission, said in a statement yesterday on the agency's Web site.
The People's Bank of China has ordered banks to set aside more money as reserves six times in less than a year to remove funds from the financial system as foreign exchange reserves surged to US$1.2 trillion. New yuan lending jumped 41 percent last year, exceeding a central bank target.
"Banks mustn't waver from the determination to curb new non-performing loans," Liu said. "Banks must keep a close watch out for the risks that may arise from accelerated growth in medium and long-term loans."
China's economy expanded 11.1 percent in the first quarter, driven by a trade surplus that almost doubled to US$46.4 billion, the statistics bureau said last Thursday.
Growth in lending has not cooled, with banks making 1.4 trillion yuan (US$181 billion) of new loans in the first quarter, nearly half the total for last year, the statistics bureau said.
Listed banks that don't meet an 8 percent capital adequacy ratio requirement are banned from giving dividends, Liu said.
The Czech Republic’s Senate on Wednesday passed a resolution that supports a possible visit by the senate president to Taiwan. The resolution, initiated by Czech Senator Pavel Fischer, was passed with 50 votes in favor, one against and one abstention. The resolution blasts Beijing for having its Prague embassy send a letter to former Czech Senate president Jaroslav Kubera earlier this year threatening repercussions for Czech businesses if he visited Taiwan. The resolution shows the Senate’s support for a visit to Taiwan by Senate President Milos Vystrcil, accompanied by Czech business representatives, as the visit would be in the diplomatic long-term interests
The government and the Chinese Nationalist Party (KMT) yesterday both spoke out against plans by the Chinese government to enact a national security law in Hong Kong. Chinese officials yesterday confirmed that the National People’s Congress would review a bill “on establishing and improving the legal system and enforcement mechanisms for the Hong Kong Special Administrative Region to safeguard national security.” The Presidential Office said that the announcement was evidence that the “one country, two systems” framework fundamentally clashes with democratic freedoms. The de-escalation of tensions between Hong Kong and Beijing relies on the Chinese government’s willingness to respond to Hong Kongers’ demands,
STRONGER DEFENSES: The announcement could be considered tacit US support for the nation’s indigenous arms manufacturing program, Joseph Wu told lawmakers Just hours after President Tsai Ing-wen’s (蔡英文) inauguration on Wednesday, the US Department of State’s Defense Security Cooperation Agency announced in Washington the possible sale of 18 MK-48 Heavy Weight Torpedoes to Taiwan. Reacting to the announcement, Minister of Foreign Affairs Joseph Wu (吳釗燮) yesterday told a meeting of the Legislative Yuan’s Foreign Affairs and National Defense Committee that the ministry applauded the US move, which would help to uphold the Taiwan Relations Act (TRA). The TRA states that the US should “provide Taiwan with arms of a defensive character … to maintain the capacity of the US to resist any resort
NPP WARNING: The NPP’s chairman said that a security law proposed by Beijing means it has renounced its promise to maintain ‘one country, two systems’ in HK The Taiwan People’s Party (TPP) yesterday proposed changing the law to provide protection for those seeking political asylum. China at the opening of the National People’s Congress in Beijing on Thursday introduced a draft security law for Hong Kong to ban treason, subversion and sedition, with a review expected next week. TPP caucus whip Jang Chyi-lu (張其祿) said that the party is concerned about democracy advocates in Hong Kong and has taken action to support them. The party has proposed an amendment to Article 18 of the Act Governing Relations with Hong Kong and Macau (香港澳門關係條例), which stipulates that the government can offer