Banks told to keep borrower 鈥榖lacklist鈥
Print Edition
THE China Banking Regulatory Commission has directed commercial banks to reduce credit risk by keeping a “blacklist” of shady borrowers, reports said.
At a recent internal meeting, the regulator expressed concern about risks associated with excessive credit and multiple-guarantor loans, Caixin Online reported yesterday.
The China Banking Association will be responsible for organizing the banking blacklist. It will especially focus on problematical industries, such as steel trading, where borrowers are failing to repay debts.
Banks have been on alert since 2012 to keep an eye on steel traders. Those firms have been engaged in guaranteeing one another’s loans, and borrowers have subsequently struggled to repay debts as the steel industry reels from overcapacity and weaker demand.
The regulator is directing banks to share credit information to end the practice of dishonest businesses hopping from city to city to get loans.
The blacklist is aimed at tracking companies and corporate legal representatives with records of misconduct, including loan write-offs, loan-sharking, illegal fundraising, and credit card kitting.
A dishonest firm can bring down a law-abiding one when a joint-loan guarantee fails. Banks should not arbitrarily cease all lending, but rather they should single out good companies, Wu Xiaoling, of the Financial and Economic Affairs Committee under the National People’s Congress, said earlier.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
