China bank regulator finds dangerous loan concentration

China''s banks, despite ambitious listing plans, still demonstrate poor lending habits say CBRC insiders.

The China Banking Regulatory Commission CBRC, established earlier this year, is flexing its muscles. It has started an ambitious programme to set up branch offices in every province and province level city. China specialists say this is necessary, as excessive local influence still persists, despite reforming the previous provincial hierarchy into a broader regional hierarchy.

The CBRC has not yet written a formal report on its findings, garnered by specially trained investigators who make visits to sift through the data collected in the bank branches.

But preliminary feedback confirms what many have long suspected.

Chinese banks like to make mid to long term loans to a very narrow...

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