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Curbing risks still top priority

THE People's Bank of China yesterday reiterated the need to curb risks even as it continues to maintain a relatively easing monetary policy.

Li Dongrong, an assistant governor of the central bank, said it will "strengthen monetary and credit management" as monetary policy faces new challenges amid the complex economic changes.

The central bank will continue implementing the economic policy made by the government while boosting growth and maintaining stability will be a priority, Li said in a statement on the central bank's Website yesterday.

Li said the relatively easing monetary policy and active fiscal policy have been effective in cushioning the decline of the economy amid the global financial fallout.

"Meanwhile, we will stick to the principle of curbing risks and reasonably controlling the use of credit to ensure a stable financial industry," Li said.

The PBOC has asked the country's main banks to report loan and deposit data daily in the last five days of each month in a bid to monitor and curb risks, the 21st Century Business Herald said yesterday, citing an unnamed banker.

Banks have been required to report the data since June. They tend to raise lending at the end of a month to boost performance.

New yuan lending more than doubled in June to 1.53 trillion yuan (US$224 billion) from 591.8 billion yuan in May, the PBOC said last Wednesday.

It was close to the average of 1.6 trillion yuan of new credit monthly in the first quarter, when credit posted a record high. New credit already mounted 7.37 trillion yuan in the first half of the year.

Premier Wen Jiabao said last week that China will continue its relatively easing monetary policy and active fiscal policy to boost economic growth.

The government will "enrich and improve policy, and identify and solve newly developing problems in a timely manner" based on changes in the economy, according to a government statement last Friday.

Economists said new loans this year could easily top 10 trillion yuan, doubling the goal at the start of the year.


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