Caixin
Mar 29, 2013 03:18 PM

CBRC Restricts Lending to Local Governments at Grassroots

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(Beijing) – The country's banking regulator has recently ordered rural banks and credit cooperatives to curb lending to government financing platforms and property development projects.

The China Banking Regulatory Commission's policy requires rural lending institutions to cap their platform loans at current levels and reduce those to platforms affiliated to governments at county level and below. They are also prohibited from indirectly providing funds to platforms by buying their bonds, short-term financing papers, medium-term notes and trust products.

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