September 19, 2009

China's bank regulator has called on the nation's banking sector to step up risk management and strengthen compliance as explosive credit growth is leading to greater risks."With bank loans growing rapidly, all kinds of risks are rising in the banking industry," Liu Mingkang, chairman of China Banking Regulatory Commission, said in the statement posted on the commission's website Friday.

"Financial institutes in the banking industry must do their upmost to uphold the standard management limits and strike a solid basis for risk management."In an effort to counter the global financial crisis, Chinese banks issued 8.15 trillion yuan (1.2 trillion dollars) in new loans in the first eight months of the year, exceeding a five trillion yuan target set for 2009.