Liu Mingkang, chairman of the China Banking Regulatory Commission told an Asian economic forum over the weekend that banks must reassess their loans on “a project-by-project” basis.
“By the end of this coming June, all of the banks are required to submit comprehensive reassessment reports to us about that area’s exposure,” he said.
His comments come as fears mount that China’s $600 billion stimulus package that has kept the economy powering ahead despite the global economic crisis has led to reckless investment decisions through off-balance sheet financing vehicles.
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